What is AMI (area median income)?
Area median income (AMI) is the midpoint income level for all households in a metropolitan area, calculated annually by the U.S. Department of Housing and Urban Development (HUD) to set eligibility thresholds for affordable housing programs.
The U.S. Department of Housing and Urban Development (HUD) calculates area median income each year for every metro area, including the Dallas-Fort Worth region. AMI represents the income level at which half of all households in that area earn more and half earn less. HUD bases this figure on data from the U.S. Census Bureau and American Community Survey.
In the Dallas metro, HUD publishes AMI figures by household size (family of one, two, three, four, and larger). These income thresholds serve as a measuring stick for affordable housing programs. For instance, a one-bedroom development might restrict residency to households earning no more than 60 percent of the area median income. If Dallas-area AMI for a family of four is $75,000, then 60 percent AMI would be $45,000.
Property owners and developers use AMI to comply with affordability requirements tied to tax credits, HUD financing, or local incentives. Apartment complexes marked as affordable housing must verify tenant income at lease signing and rent renewal to ensure it falls within the AMI-based limit. The annual recalculation of AMI means income thresholds shift each year, affecting which households qualify. For Dallas apartment operators and residents seeking affordable housing providers, understanding AMI is essential to determining program eligibility and comparing rent restrictions across properties.