Affordable Housing Rental Rates (low income, for sale, rentals)

[sadie123]

Affordable Housing Rental Rates:

I have been looking for a low income rent schedule for Hawaii County. Would anyone know where I can find one?

What is the most you can charge for rent on a three-bedroom house and be considered affordable housing?

A two-bedroom?

Thank you.

[OpenD]

Originally Posted by sadie123

Affordable Housing Rental Rates:

I have been looking for a low income rent schedule for Hawaii County. Would anyone know where I can find one?

What is the most you can charge for rent on a three-bedroom house and be considered affordable housing?

A two-bedroom?

That's not an easy question to answer, because it depends on the combined household income. And from what I've heard, there's a 2-5 year waiting list to get in, with some waiting lists closed indefinitely, because there is a big demand but not a lot of inventory.

I suggest you contact the folks at Hawaii Public Housing Authority, who can answer your questions authoritatively.

Hawaii Public Housing Authority - State of Hawaii

[sadie123]

Thanks. We are looking to possibly purchase a home and a rental and I wanted to keep the rental in the affordable range, but finding the answer has been a challenge.

[OpenD]

Originally Posted by sadie123

Thanks. We are looking to possibly purchase a home and a rental and I wanted to keep the rental in the affordable range, but finding the answer has been a challenge.

Ahhhh, gotcha. Best I can find is an old (2006) chart of "Fair Market Rents for Existing Housing," which shows $1,191 for a three bedroom and $845 for a two bedroom.

http://www.hcdch.hawaii.gov/documents/fmr.pdf

[sadie123]

That is very helpful! At least I have a ball park figure.

[hotzcatz]

Ask the tax office, they are the ones who would know.

[oregonwoodsmoke]

Work it the other way around. Take minimum wage, multiply it by 40 hours a week, times 4 weeks. Take that number and figure about 1/4 of it would be the max that people can pay for housing.

For a 1 bedroom, use 1 salary. For a 2-3 bedroom, use 2 salaries and hope for a 2 wage earner family.

That is what would be barely affordable for a working class family, as long as they don't burn too many lights and eat Ramen occasionally for dinner.

People with high paying jobs can pay a lot more. Or multiple families can share a higher rent place. But when you say "affordable", I get the impression you are looking for the price range that the average family could afford.

[OpenD]

Originally Posted by oregonwoodsmoke

But when you say "affordable", I get the impression you are looking for the price range that the average family could afford.

As used here, it's a government term. The Hawai'i property tax rate on Affordable Housing is just slightly over half the rate of regular property, and it uses published tables to determine what is "Affordable."

[hotzcatz]

The "affordable" term is used determine how much property tax the Tax Office charges on a rental property. If you rent it for lower rates or at least at the rate they determine to be "affordable" (which may not have anything to do with reality) then the homeowner pays a lower property tax.

[CyberCity]

Although a different scenerio, here is some info on some new "affordable" homes for sale in Hawaii County (perhaps it will help explain why even affordable rentals can seem high, or in other words, the term "affordable" means different things to different people):
Kamakoa Nui -

• Prices will range from $240,000 to $325,000
• “buyers will have the chance to assume full ownership of the home and land after 15 years,”, if sold before 15 years, any windfall profit must be shared with the county.
• Buyers must commit to living in the homes