(The infographic above was provided by Mountain Housing Council)

Each year, the US Department of Housing and Urban Development (HUD) calculates the area median income (AMI) for every geographic region in the country by using data from the US Census based American Community Survey. The area median income is the midpoint of a region’s income distribution, meaning that half of households in a region earn more than the median and half earn less than the median. A household’s income is calculated by its gross income, which is the total income received before taxes and other payroll deductions.

In addition to calculating AMI, HUD defines and calculates different levels of AMI for geographic areas across the country by household size. Households less than 80% of the AMI are considered low-income households, households earning less than 50% of the AMI are considered to be very low-income, and households earning less than 30% of AMI are considered to be extremely low-income households. These income levels set relative to AMI identify households that may be eligible for certain housing assistance programs administered through HUD (however, the number of tiers used, and percentage of AMI used for qualification varies by each housing program).

Here is a look at the 2021 AMI for Arapahoe County: