Housing Market Still Difficult for Cape Renters
The Commission recognizes affordable rental housing as the top affordable housing priority in the region. As such it has directed upwards of $8 million in HOME funds towards the creation of rental housing developments on Cape Cod.
A housing unit is considered affordable if it costs no more than 30% of the renter’s income.
The Fair Market Rent (FMR) for a two bedroom apartment on Cape Cod is $1,176. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $47,040 annually. Assuming a 40-hour work week, year-round, this level of income translates into the following Housing Wage: $22.62.
The estimated average wage for a renter on Cape Cod is $10.67 an hour. In order to afford the rent for this apartment, the renter must work 85 hours per week, year-round. Or, working 40 hours per week year-round, a household must include 2.8 workers (each earning the average renter wage) in order to make the two bedroom FMR affordable.
In order for the minimum wage worker, earning an hourly wage of $8.00, to afford the rent on this apartment they must work 113 hours per week, year-round. Or, their household must include 2.8 minimum wage earners each working 40 hours per week year-round in order to make the two bedroom FMR affordable.
In Barnstable County the monthly Supplemental Security Income (SSI) payment for an individual is $721. If SSI represents an individual’s sole source of income, then $216 in monthly rent is considered affordable. The FMR for a one-bedroom apartment is $877.
For more information about the HOME Consortium please visit: http://www.capecodcommission.org/departments/planning/housing.
Barnstable County: Affordable Housing Data
|Total Number of Households (2008-12)||95,520|
|% Renter (2008-12)||20%|
|Annual Median Income (2012)||$74,900|
|30% of Annual Median Income (2012)*||$22,470|
|1BR Monthly Fair Market Rent (2014)||$877|
|2BR Monthly Fair Market Rent (2014)||$1,176|
|Annual Income Needed to Afford 1BR at Fair Market Rent||$31,480|
|Annual Income Needed to Afford 2BR at Fair Market Rent||$35,080|
|Estimated Median Renter Household Income (2014)||$34,130|
|Rent Affordable at Median Renter Income||$853|
|% Renters Unable to Afford 2BR at Fair Market Rent||61%|
|Estimated Mean Renter Wage||$10.67|
|Rent Affordable at Mean Wage||$555|
|Rent Affordable at Minimum Wage||$416|