What is considered very-low, low, or moderate income in Arcata?
The Summary
The Federal guideline is that a person or family spend should not spend more than 30% of their gross (pre-tax) income on rent and utility costs. You will find how these figures are derived later in this article.
| Moderate Income: two income-earners, family of four |
Low Income: Single person |
Low Income: Two income-earners, not married | |
| 30% of Monthly Income | $1,649 – $2,513 | $648 – $1,155 | $825 – $1,320 |
| Subtract for utilities | – $250 | – $200 | – $200 |
| Rent payment, approximate | $1,400 – $2,250 | $450 – $950 | $625 – $1,120 |
How many rentals for a family of four — that’s making $66,000 a year — are available in Arcata for $1,400? For a 2-bedroom apartment, yes. For a 3-bedroom house, I’d say None.
How many rentals for a single person making making $36,000 a year — that is $18 an hour — are available in Arcata for $700? I’d say None.
A four-person family earning $65,950 to $100,500 would be categorized as “Moderate Income” and would want to find a rental at a cost of $1,400 if they’re making $65,950, or up to $2,250 per month if they’re making $100,500.
A single person earning $25,901 – $46,200 would be categorized as “Low Income” and would want to find a rental at a cost of $450 if they’re making $25,901, or up to $950 per month if they’re making $46,200.
Is that possible without subsidized housing? No, it is not possible.
What is meant by “Affordable Housing”?
For a series of articles on Affordable Housing, Inclusionary Zoning, and Home Ownership in Arcata and elsewhere, please see here on Arcata1.com.
This article looks the State of California dollar figures for what is meant by “very low income” and “low income” and “moderate income” and “above moderate income” here in in Arcata and Humboldt County.
These are the 2023 figures are from the State of California Department of Housing and Community Development (HCD). The “2023 State Income Limits” has four pages of text on how these figures are derived, and nine pages of listings for the 58 counties in California.
In Humboldt County, our Area Median Income is shown as $83,800, based on a family of four. “Moderate Income” ranges from 80% to 120% of that, which is $65,951 to $100,550 for a family of four. For a single person, we take 70% of those figures; for 2 persons it’s 80%, and so on.
Colusa, Del Norte, Fresno, Glenn, Humboldt, Imperial, Kern, Kings, Lake, Lassen, Madera, Mariposa, Merced, Modoc, Plumas, Siskiyou, Sutter, Tehama, Trinity, Tulare, and Yuba Counties all have the same Area Median Income of $83,800.
| Humboldt County Area Median Income: | $83,800 | |||||||
| Number of Persons in household | ||||||||
| Income: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Family size multiplier: | 70% | 80% | 90% | 100% | 108% | 116% | 124% | 132% |
| Very Low | $28,900 | $33,000 | $37,150 | $41,250 | $44,550 | $47,850 | $51,150 | $54,450 |
| Low Income | $46,200 | $52,800 | $59,400 | $65,950 | $71,250 | $76,550 | $81,800 | $87,100 |
| Median | $58,650 | $67,050 | $75,400 | $83,800 | $90,500 | $97,200 | $103,900 | $110,600 |
| Moderate | $70,400 | $80,450 | $90,500 | $100,550 | $108,600 | $116,650 | $124,700 | $132,700 |
| Above moderate | above $70,400 | above $80,450 | above $90,500 | above $100,550 | above $108,600 | above $116,650 | above $124,700 | above $132,700 |
What this means in terms of rents
For purposes of having some income figures to use as examples, let’s take the “moderate” annual income of $100,500 for a family of 4 persons, the “low income” annual income of $46,200 for a single person, and the “low income” annual income of $5,280 for two people, not filing taxes as married.
| Moderate Income: two income-earners, family of four |
Low Income: Single person |
Low Income: Two income-earners, not married | |
| Annual Income | $65,951 – $100,500 | $25,901 – $46,200 | $ 33,001 – $52,800 |
| Monthly Income | $5,496 – $8,375 | $2,158 – $3,850 | $2,750 – $4,400 |
| 30% of Monthly Income | $1,649 – $2,513 | $648 – $1,155 | $825 – $1,320 |
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This 30% is the Federal guideline for the cost of rent and utilities. |
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| Take-Home salary | $4,570 – $6,693 (married) | $1,854 – $3,122 | $2,468 – $4,004 |
| 30% of Take-Home | $1,370 – $2,008 | $556 – $937 | $7,404 – $1,201 |
What is “affordable” by Federal guidelines is that a person or family spend not more than 30% of their gross (pre-tax) income on rent and utility costs.
If the landlord is not paying for water/sewage, the minimum monthly water bill in Arcata is now $88. For a family of four, that might be $160-$180 per month. A “reasonable” gas/electric bill might be $120/month on a year-average basis. We can use $200-$250 as a utility amount.
As shown in the Summary above, based on that information, we have:
| Moderate Income: two income-earners, family of four |
Low Income: Single person |
Low Income: Two income-earners, not married | |
| 30% of Monthly Income | $1,649 – $2,513 | $648 – $1,155 | $825 – $1,320 |
| Subtract for utilities | – $250 | – $200 | – $200 |
| Rent payment, approximate | $1,400 – $2,250 | $450 – $950 | $625 – $1,120 |
In Arcata, in 2024, there are not many options for renting at these price levels. At the lower end of the income figures — $65,951 for a Moderate Income family of four; $25,901 for a Low Income single person; $33,000 for Low Income two persons — we are seeing the target rent costs as:
- $1,400 for the Moderate Income family of four
- $450 for the Low Income single person
- $625 for Low Income two persons
These rent costs are not present in the real world, except through subsidized housing.
For a further discussion on affordable housing, see What are the definitions of “Affordable Housing”? from May, 2023, here on Arcata1.com.
From Arcata’s Strategic Infill Redevelopment Program Frequently Asked Questions webpage, at cityofarcata.org/964/Frequently-Asked-Questions
Q: WHAT DOES THE CITY MEAN WHEN IT SAYS AFFORDABLE HOUSING?
A: Affordable housing means one of three things depending on the context. We use the term 1) in relation to what is affordable at the household level, 2) to describe state mandated policy objectives, and 3) within the context of our affordable housing regulatory programs. Affordable housing at the household level means the household is not overpaying for housing costs. Generally, housing is considered affordable if the household is paying 30% or less of its income towards rent or less than 38% of its income towards a mortgage. From a policy perspective, affordability is defined at the population level. The City’s Housing Element goes into greater detail, but in short, the City must plan for housing that is affordable to all economic segments of its population. Housing affordability categories are based on Area Median Income (AMI), and the City is responsible for providing sufficient land to accommodate housing for all income levels. The income groups are defined by the state as follows:
- Very low income: 31 to 50 percent of AMI
- Low income: 51 to 80 percent of AMI
- Moderate income: 81 to 120 percent of AMI
- Above moderate income: 120 percent or more of AMI
In 2021, Humboldt County’s AMI was $72,000. This is based on a household size of four. For more information on the state’s method for determining AMI by household size, see www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits/docs/income-limits-2021.pdf.
Humboldt County Area Median Income: $72,000 in 2021
| Number of Persons in household | ||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
| Income: | ||||||||
| Extremely Low | $14,700 | $17,420 | $21,960 | $26,500 | $31,040 | $35,580 | $40,120 | $44,660 |
| Very Low | $24,500 | $28,000 | $31,500 | $34,950 | $37,750 | $40,550 | $43,350 | $46,150 |
| Low Income | $39,150 | $44,750 | $50,350 | $55,900 | $60,400 | $64,850 | $69,350 | $73,800 |
| Median | $50,400 | $57,600 | $64,800 | $72,000 | $77,750 | $83,500 | $89,300 | $95,050 |
| Moderate | $60,500 | $69,100 | $77,750 | $86,400 | $93,300 | $100,200 | $107,150 | $114,050 |
| Above moderate | > $60,500 | > $69,100 | > $77,750 | > $86,400 | > $93,300 | > $100,200 | > $107,150 | > $114,050 |
Lastly, the City’s affordable housing programs are regulated through agreements with housing developers. Affordable housing in this context is defined by the AMI category as described above, but each project commits to an income level. Generally, affordable housing in this context means low income or lower.