In a stark turn of events, the San Antonio-New Braunfels area's median income for a family of four has seen its first decrease since 2016, dropping a subtle $100 from the previous year's $88,600 to $88,500. The U.S. Department of Housing and Urban Development disclosed the 2024 area median incomes (AMI) last month, which are crucial in determining eligibility for HUD-funded housing assistance programs.
Local housing experts have minimized the significance of this downshift, believing it unlikely to affect the larger population that depends on such assistance. This minor 0.1% drop, they say, won't make much a wave for residents tethered to housing aid, according to the San Antonio Report.
AMI calculations are used by HUD to cap rents for subsidized housing while enabling local government and developers to target funding and construct public housing. New AMI orders have been active for some federal programs since May 1 and others will roll in come June 1. The city of San Antonio began adherence to the new AMI in April for local programs, as per Veronica Gonzales, assistant director of the city's Neighborhood and Housing Services Department, reported by the San Antonio Report.
While the change might be slight, it's significant for those applying to federally-funded housing programs, as they may see a shift in the income limits this year. Gonzales emphasizes that, despite the dip, "anybody in our programs through NHSD should be able to continue to qualify." The city programs serve those at or below 60% AMI for renters and 120% for homeowners and provide an array of services including rental and downpayment assistance, home repair, and funding for the construction and rehabilitation of affordable housing.
According to HUD's method, the AMI is derived from an amalgamation of Census data and inflation estimates—not a direct measure of the cost of living but more so a rough reflection of economic conditions related to housing in an area. Zuleika Morales-Romero, HUD's San Antonio Field Office Director, mentioned that the slight decrease in AMI is not a cause for immediate alarm, with apartment market softening as a result of lower rent and occupancy rates, as more units have recently entered the market.
In the combined region of Bandera, Bexar, Comal, Guadalupe and Wilson counties—the areas HUD groups together for the San Antonio-New Braunfels AMI—more than 250,000 residents live below the Census Bureau’s poverty line. The area’s AMI is skewed higher than that of San Antonio alone. The San Antonio Report further notes that in 2022 around 46% of Bexar County households struggled to afford basic essentials, earning below the "survival budget" as termed by the wage advocacy group, United for ALICE.
Despite this year's downtick, the San Antonio-New Braunfels AMI has generally been on an upward trend since 2016, which has historically expanded eligibility for rent and home repair assistance. However, AMI-based rent limits are merely a ceiling; HUD doesn't compel property managers to reach these limits. With the new calculations, some renters might see small reductions in their rent payments—those formerly capped at $620 for 30% AMI renters are now approximately at $600.
Tenants using housing choice vouchers and those in public housing will not be impacted by these AMI changes, as their rent is pegged to 30% of their specific incomes, not the general AMI. As for the mixed-income properties, offering both income-restricted and market-rate units, there is a potential for rent decreases in line with the AMI adjustment.
