Maxwell Drever, the Founder, and Chairman of DCM say Workforce housing is taking many communities by storm. It is quickly becoming one of the most popular affordable housing options for workers. In case you don’t know what workforce housing is, here’s its literal definition:
The National Association of Realtors (NAR) defines workforce housing as: “Housing that is affordable to households earning between 60% and 120% of the area median income.”
So, how much does one need to earn to be eligible for workforce housing?
Take a look at the following chart and find your range:
| Workforce Housing Ranges | |||||
| Household Members | 0 – 50% | 50% – 80% | MFI (100%) | 80% – 120% | 120% – 200% |
| 1 | $40,460 | $64,736 | $80,920 | $97,104 | $161,840 |
| 2 | $46,240 | $73,984 | $92,480 | $110,976 | $184,960 |
| 3 | $52,020 | $83,232 | $104,040 | $124,848 | $208,080 |
| 4 | $57,800 | $92,480 | $115,600 | $138,720 | $231,200 |
| 5 | $62,424 | $99,878 | $124,848 | $149,818 | $249,696 |
| 6 | $67,048 | $107,277 | $134,096 | $160,915 | $268,192 |
| 7 | $71,672 | $114,675 | $143,344 | $172,013 | $286,688 |
| 8 | $76,296 | $184,960 | $152,592 | $277,440 | $462,400 |
| Net Asset Limits | $115,600 | $184,960 | $277,440 | $462,400 |
As you can see, the household income is based on the number of family members. The Median Family Income (MFI) range shows that a family consisting of just one member earns $80,920, making them 100% eligible for workforce housing.
Benefits of Workforce Housing for Exhausted Employees
As the name says, workforce housing is specifically for the working class, including doctors, nurses, construction site workers, police officers, firefighters, and people working in a similar hard-labor field.
These people earn high in the income range but not high enough to buy a house with all the bells and whistles. The house might not have enough charisma, but it will be beautiful and comfortable enough that you would want to live in it.
Now coming to the benefits, one of the biggest ones is that workforce housing is close to the business hub. For example, if you work as a police officer, you would probably want a house close to your station. This will make the commute easy and allow you to save more on fuel and allow you to reach the station quickly in case of emergencies.
The Challenges
Along with benefits comes a set of challenges that workforce housing present. Recession and COVID-19 have hit the world pretty hard in the past two years. With more people are now earning lower than the median income, it has become difficult to screen the workforce housing applications.
When it comes to the leasing option, workers face many problems, such as a low credit score, increasing the risk of delinquency. Therefore, you need to find out where you fall in the income range so you can get approved on your first try.
In conclusion, workforce housing helps workers relieve their stress by offering them a comfortable and affordable housing option in an area where they don’t have to worry about the commute. Workforce housing is a growing concern in today’s society. As per Maxwell Drever, its purpose is to provide workers with ease, which is why these projects are available for renting and buying. By lowering the construction cost, workforce housing can also be made affordable for low-income workers.