Important Facts for Rental Housing Cost
DefinitionThe percentage of income that a household spends on rental housing is the ratio of monthly gross rent to monthly household income (total annual household income divided by 12). Gross rent is the contract rent plus the estimated average monthly cost of utilities (electricity, gas, and water and sewer) and fuels (oil, coal, kerosene, wood, etc.) if these are paid by the renter (or paid for the renter by someone else).
NumeratorNumber of renter-occupied units spending 30 percent or more of household income on gross rent
DenominatorTotal number of renter-occupied housing units
Data Interpretation IssuesBe aware that confidence intervals can be wide for this measure.
For more information on how to interpret confidence intervals, please see: http://www.schs.state.nc.us/SCHS/champ/technical.html
Why Is This Important?"Housing affordability is a problem that affects mostly low-income individuals and families. People with limited income may have problems paying for basic necessities, such as food, heat, and medical needs. In addition, people with limited incomes may be forced to live in substandard housing in an unsafe environment." - North Carolina Institute of Medicine. Healthy North Carolina 2020: A Better State of Health.
Other ObjectivesHealthy North Carolina 2020