Workforce Housing Rent Tier Calculator

Workforce housing (80-120% AMI) bridges affordable and market rate.

AMI (4-person)

80% AMI units

100% AMI units

120% AMI units

Utility allowance / mo

Monthly revenue

$235,000

Blended rent

$2,350

100% AMI rent

$2,400

How the math works

Rent at each tier = AMI × tier × 30% ÷ 12 − UA. Revenue = Σ(units × rent).

$100k × 100% × 30% / 12 − $100 = $2,400. Revenue = $30×$1,900 + $50×$2,400 + $20×$2,900 = $235k/mo.

How to Use

Enter AMI (4-person).
Enter 80% AMI unit count.
Enter 100% AMI unit count.
Enter 120% AMI unit count.
Enter utility allowance / mo.
Read blended workforce rent.

Frequently Asked Questions

What is 'workforce housing'?

Housing affordable to households earning 80-120% AMI. Includes: teachers, nurses, first responders, service workers, essential service workers. Between LIHTC (60% AMI typically) and market. Not federally subsidized but often supported by state/local programs. Growing segment: many markets lack supply. Institutional investors (Green Street, Nuveen) increasingly focus here.

Typical rent tiers?

60% AMI: $1,200-1,400/mo (strict LIHTC level). 80% AMI: $1,600-2,000/mo (workforce entry). 100% AMI: $2,000-2,500/mo (workforce middle). 120% AMI: $2,400-3,000/mo (workforce upper). 140% AMI: $2,800-3,500/mo (near-market workforce). Market rate: $2,800-4,500/mo. Varies materially by market. Each tier has different income qualification.

Operator economics?

Workforce tiers rent 15-30% below market — less NOI compression than LIHTC (60% AMI rents 40-60% below market). Typically no federal subsidy; rely on local tax abatement, state HFA programs, or direct mezzanine from city. Middle-income housing trust funds increasingly fund workforce. Net cash flow typically break-even to slightly positive year-1; rising to market-like returns over hold.

Why the gap in supply?

80-120% AMI households don't qualify for LIHTC (too high income). Can't afford market in most cities. Traditional financing doesn't pencil at workforce rents without subsidy. Need some combination: tax abatement (20-50 years), impact fee waiver, density bonus, HFA low-cost debt, state housing trust grant. 5-10 year shift toward workforce focus in major cities. Emerging asset class worth watching.