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Affordable Housing programs and tools

Overview and key facts

Montgomery County has a collection of tools and policies that help produce and preserve affordable housing. This page provides more details on the terms, policies, and programs that involve building and preserving affordable housing in Montgomery County. While the Planning Department does not administer housing programs directly, it plays a key role in analyzing housing needs, shaping policy, and collaborating with developers and county agencies to advance affordable housing goals.

Key terms

  • Area Median Income (AMI): Each year, the U.S. Department of Housing and Urban Development (HUD) calculates the Area Median Income (AMI) for every region using data from the American Community Survey. AMI is the middle point of household incomes in a region, half of households earn more, and half earn less. AMI is used to determine who qualifies for affordable housing programs and how much they pay. You can find the current AMI using this query tool by HUD.
  • Income-Restricted Affordable Housing: Refers to housing that is offered at lower rents or subsidized to make it more affordable for people with limited incomes. To qualify, households must earn below a certain income threshold, often based on a percentage of the AMI.
  • Low Income: Refers to households earning up to 50% of AMI. This includes extremely low income (up to 30% AMI) and very low income (31-50% AMI)
  • Moderate Income: Includes households earning between 50% to 70% of AMI.
  • Workforce Income: In Montgomery County, this refers to households earning between 70% and 120% AMI. Unlike HUD-defined income categories, this range is specific to the County’s Workforce Housing Program, which targets moderate- and middle-income workers—such as teachers, nurses, and first responders—who earn too much for traditional affordable housing but still face high housing costs.
  • Market-rate Housing: Units rented or sold without any affordability restrictions or public subsidy. Prices are set by the private market, based on demand, location, amenities, and other factors.
  • Naturally Occurring Affordable Housing (NOAH): Market-rate housing that is affordable due to age, location, or condition, not because of subsidy. These units are often at risk of rent increases or redevelopment unless preserved.

Key local housing policies, programs and funding mechanisms

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