Tuesday, May 3, 2011
Would it cost you less money to own in DC than to rent in DC?
The National Low Income Housing Coalition just came out with its 2011 data dump, and D.C. residents shouldn't be that surprised: that only Hawaii commands a higher rent from tenants.
More specifically, the NLIHC calculates the "housing wage," which is the full-time hourly wage a household would need to earn in order to afford the fair market rent for an apartment, paying no more than 30 percent of their income on housing. For D.C., that's $28.10; Hawaii's is $31.08.
Of course, that's a little misleading -- D.C. is the only solely urban jurisdiction in that ranking, so rents will inevitably be higher. But it's not that far off from the highest-ranked metropolitan area, Stamford-Norwalk, Conn., which comes in at $34.62. And the most instructive numbers are those comparing D.C.'s rents with the median renter's income, which is $38,210. You'd need to make $58,440 in order for the fair market rent for a two-bedroom to be considered affordable. Sixty-eight percent of D.C.'s rental population -- 55 percent of the entire population -- doesn't meet that bar.
Let's talk about the DC market, get you qualified to buy and see if your monthly mortgage payment would be less than your monthly rent (based on the type of home you live in/want to live in)). I'm here to help!
Licensed in DC & MD