There are two types of Affordable Housing:
Subsidized Housing – a form of rental assistance that is based on a tenant’s income. The rent paid by the tenant is 30% of the tenant’s income. The remaining cost, the difference between the rent and the amount the tenant pays, is paid to the landlord.
Low Income Housing Tax Credit –an income restricted form of rental assistance based on a tenant’s income taken as a percentage of area median income. Example –if a facility offers an apartment at 60% of area median income in a county that has an area median income of $80,000, then the maximum amount of rent that can be charged is $1,200/month ($80,000 x 60% x 30% [amount of income typically going toward housing] ÷12).