1. Affordable Housing & Minimum Wage

2. What is Affordable Housing?
Affordable: able to afford and still have money for food, healthcare, transportation, etc.
Housing: providing of shelter that is safe, decent.
Single family home
Townhouse
Condo
Apartment
Affordable Housing: a housing cost that doesn’t exceed 30% of a households gross income.
Gross income: income before deductions

3. According to the US Department of Housing and Urban Development, “an estimated 12 million renter and homeowner households now pay more than 50 percent of their annual incomes for housing. A family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.”

4. Let’s Analyze Chicago’s Housing…
Median single family home price in Chicago for 2015 was $265,000.
Using a mortgage calculator ( with a current interest rate of 4%, 30 year loan with 10% down payment and property tax…monthly payment would be $1588.
If the monthly payment is $1588 (part), we can substitute into the formula below to determine what a person’s monthly salary (whole) would need to be to be able to afford (30% of salary)living in Chicago.
1588 x
30%
100
x = $5293 =

5. What does this mean?
x = $5293
This means that a family’s monthly income would need to be at least $5293.
It would take 530 minimum wage ($10/hour) hours per month to be able to pay for this home….that is 132 minimum wage hours each week!
Therefore, in Chicago, even if you have two adults working full-time (40 hours), they would not be able to afford to own a home.

6. Des Moines, Iowa Down payment Amount: ____________
Median Home Price: $186, 700
Down Payment: 10%
Interest Rate 4%
Using to find mortgage and the following information.
Down payment Amount: ____________
Monthly Mortgage ________________
Monthly Salary Needed ____________
Minimum Wage Hours Monthly _______
Minimum Wage Hours Weekly _______
Can a family with two minimum wage
workers afford to live in this city? _____
________________________________

7. Recommended Budget Percentages

8. Minimum Wage Budget A family with 2 minimum wage workers: Budget
Income: $3200
Budget
Housing: ___________________
Transportation: ______________
Food: _____________________
Savings: ___________________
Utilities: ___________________
Medical/Health: ____________
Personal: __________________
Recreation: ________________
Debt: _____________________