Housing - either owned or rented - that costs less than 30% of household income is conventionally considered “affordable.” Housing costs include rent or mortgage, utilities, maintenance, taxes and insurance.
Affordable housing is important for working individuals and families, and for senior citizens. Salaries for public service, education, health care, STEM, and other professions, as well as the wages earned by workers in the service industry and trades can fall within the limits that qualify for affordable housing.
The State of Connecticut qualifies affordable housing by statute based on household income limits set by the U.S. Department of Housing and Urban Development, and specifies a deed restriction that requires sale or rental to qualified buyers at affordable prices.
As an example, for 2021 in Old Lyme, housing would need to be sold or rented to a family of four with a household income of $79,900 or less and cost no more than $2000 per month in order to be qualified as affordable. Housing that is occupied by persons receiving government rental assistance or housing that has met the requirements for financing by the Connecticut Housing Finance Authority or the U.S. Department of Agriculture is also recognized as affordable by the State.