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<br />DEMOGRAPIDC ANALYSIS
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<br /> TABLE D-3
<br /> MHFA INCOME LIMITS
<br /> TWIN CITIES METRO AREA
<br /> 2009
<br />
<br /> . .' ..... . . .=:~ u . ". \ "",;",,,,' ., ',' ~ k . ~ : . ""':':0':' . '" _. " - - - - - - - - --- - 'N '.' '. -- -
<br /> I 1 pph II 2 phh U 3phh II 4phh II 5phh U 6 phh U 7phh II 8 phh ~
<br /> .
<br />30% of median $17,600 $20,100 $22,650 $25,150 $27,150 $29,150 $31,200 $33,200
<br />50% of median $29,350 $33,550 $37,750 $41,950 $45,300 $48,650 $52,000 $55,350
<br />60% of median $35,220 $40,260 $45,300 $50,340 $54,360 $58,380 $62,400 $66,420
<br />80% of median $46,960 $53,680 $60,400 $67,120 $72,480 $77,840 $83,200 $88,560
<br />Sources: Minnesota Housing Finance Agency; Maxfield Research Inc.
<br />
<br />The estimated distributions of household incomes in 2009 and 2014 in the PMA, SMA and Mar-
<br />ket Area are shown in Tables D-4 and D-5. Data in the tables is sourced from Claritas, Inc., with
<br />adjustments by Maxfield Research Inc. to account for local trends. Considered along with in-
<br />come-guidelines for financially assisted housing products as well as typical monthly pay-
<br />ments/rent rates for specific housing products, the data helps ascertain the demand for different
<br />housing products based on the size ofthe market at specific cost levels.
<br />
<br />The Department of Housing and Urban Development defines affordable housing costs as 30% of
<br />a household's adjusted gross income. Maxfield Research Inc. uses a figure of25% to 30% for
<br />younger households and 40% or more for seniors, since seniors generally have lower living ex-
<br />penses and can often sell their homes and use the proceeds toward housing costs. Seniors who
<br />are in an assisted living or other service-enhanced housing situation often contribute much great-
<br />er percentages of their incomes toward rent and services, potentially up to about 90%. Some
<br />households may spend down assets to avoid a nursing home.
<br />
<br />The following are key points from Tables D-4 and D-5.
<br />
<br />· In 2009, the median household income in the PMA is estimated to be $77,350, slightly higher
<br />than the estimated median income in the SMA ($67,575) and the Market Area overall
<br />($70,810). By 2014, the PMA's median income is projected to climb to approximately
<br />$83,240 (+7.6%).
<br />
<br />· Typically, household incomes increase with age. In the PMA, median household incomes
<br />increase from $45,650 for age 15 to 24 households to $89,730 for age 45 to 54 households.
<br />Thereafter, household incomes decline in each cohort to reach a low of $30, 180 for house-
<br />holds age 75 and older.
<br />
<br />MAXFIELD RESEARCH INC.
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