In California, the cost of housing is among the highest in the country, making affordable housing essential for many working families. The Area Median Income (AMI) is used to determine eligibility for many publicly-funded affordable housing programs, particularly through the Low-Income Housing Tax Credit (LIHTC).

According to the Department of Housing and Urban Development (HUD), AMI is the midpoint of a region’s income distribution, meaning that half of the households in that area earn more than the median and half earn less. AMI is calculated each year by HUD for metropolitan areas and regions in the United States. So, the demographics and AMI qualifications vary across the country.

Below is a breakdown and overview of AMI qualification levels in California.

• 50% of AMI: In California, renters earning 50% of the AMI often include low-wage workers in roles such as food service, retail, or hospitality. In a high-cost region like Los Angeles, this might equate to individuals earning around $40,000 annually or families of four with a household income of approximately $63,000. In San Francisco, these numbers change to $52,000 and almost $75,000, respectively. Workers at this level may include positions such as cashiers, restaurant staff, and home health aides.

• 60% of AMI: Households at 60% of the AMI include those earning a little more, but still facing housing cost burdens in competitive markets. For example, in San Diego, a single individual may qualify with an annual income of about $63,000, while a family of four might earn up to $90,000. Occupations at this income level might include teaching assistants, entry-level healthcare professionals, or office support staff.

• 80% of AMI: At 80% of the AMI in California communities, households may include individuals and families who are not eligible for market-rate rents but earn above typical LIHTC eligibility thresholds. In areas like Santa Clara County (which is home to San Jose), a household could earn between $103,000 to $147,000 depending on family size. Renters at this level may include public sector workers, such as school teachers, bus drivers, or police officers in junior roles, as well as early-career professionals in tech or finance industries.

• 100% and Above AMI: Although not typically part of affordable housing programs, understanding renters at 100% or above AMI helps illustrate the income disparities in California’s housing market. Renters at this level generally earn enough to afford market-rate housing but may still struggle with housing costs in extremely high-cost areas. Households in this category might include young professionals, mid-level managers, or dual-income households.

Understanding who qualifies for affordable housing helps tailor developments to meet the needs of local communities, ensuring a range of affordable housing options that reflect income diversity across the state. The diverse workforce in California, combined with the high cost of living, makes affordable housing at various AMI levels critical. As a result of these cost burdens, the need for housing support extends beyond traditional low-income families and into individuals and families that work in professions such as government, service and entry-level professionals. Expanding access to affordable units ensures that the entirety of the state’s workforce has the stability needed to thrive in the high-cost environment of California.