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Number of Affordable rent (including Affordable rent (including Affordable rent (including bedrooms: utilities) at 30% of AMI utilities) at 50% of AMI utilities) at 80% of AMI Studio $455 $758 $1,212 1-BR $487 $812 $1,299 2-BR $585 $975 $1,560 3-BR $675 $1,126 $1,801 4-BR $753 $1,256 $2,009 Calculations of affordability for ownership units are more complicated because there are more variables in monthly housing costs — such as generalized assumptions3 about down -payments and mortgage interest rates — and each homeowner will have a different experience. Each year, the Council develops affordability limits based on forecasting what those annual assumptions will be; these are used to inform development funded through the Livable Communities Act programs. While we can't predict what future home prices will be, we can look backward at the estimated market values for 2014; these are the basis of the Council -provided maps showing ownership units that are affordable to households at 80% of AMI. Affordable purchase prices are provided for both 2014 and 2015 below. If your community chooses to develop a map with a different data source to satisfy this requirement, please contact Council staff to find out which affordability limit you should use. 30% of AMI 50% of AMI 80% of AMI Affordable purchase price $85,500 (2015) $153,000 $240,500 Affordable purchase price $73,500 (2014) 1. For a full explanation of how these amounts were calculated, see HUD's website. $132,000 $211,500 2. These rents assume that a household should pay no more than 30% of its monthly income on rent (including utilities), and (in keeping with IRS regulations) that a housing unit can comfortably hold 1.5 times as many people as the number of bedrooms it has. 3. For both years, in addition to the 29% housing debt to household income ratio, we assumed a 30-year fixed -interest mortgage, a 3.5% down -payment, a property tax rate of 1.25% of property sales price, and $100 / month for hazard insurance. For 2015, we assumed a 3.75% interest rate and mortgage insurance premiums at 0.85% of unpaid principal. For 2014, we assumed a 4.17% interest rate (the average rate in the Midwest in 2014) and mortgage insurance premiums at 1.35% of unpaid principal LOCAL PLANNING HANDBOOK Metropolitan Council 390 Robert Street North Saint Paul, MN 55101 Main: 651.602.1000 TTY: 651.291.0904 Public Information: 651.602.1500 pu blic. infoitmetc.state. m n. us September 2015 metrocouncil.org METROPOLITAN COUNCIL