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Table 21 shows a rough estimate of affordable housing cost and units by <br />income levels for Eugene in 2012 based on Census data about tenure, <br />household income, the value of owner occupied housing in Eugene, and <br />rental costs in Eugene. Several points should be kept in mind when <br />interpreting this data: <br />Affordable monthly housing costs and estimate of affordable <br />purchase prices are based on HUD income standards and assume <br />that a household will not spend more than 30% of household <br />income on housing costs. Some households pay more than 30% of <br />household income on housing costs, generally because they are <br />unable to find more affordable housing or because wealthier <br />households are able to pay a larger share of income for housing <br />costs. <br />HUD's affordability guidelines for Fair Market Rent are based on <br />median family income and provide a rough estimate of financial <br />need. These guidelines may mask other barriers to affordable <br />housing such as move -in costs, competition for housing from <br />higher income households, and availability of suitable units. They <br />also ignore other important factors such as accumulated assets, <br />purchasing housing as an investment, and the effect of down <br />payments and interest rates on housing affordability. <br />Households compete for housing in the marketplace. In other <br />words, affordable housing units are not necessarily available to low <br />income households. For example, if an area has a total of 50 <br />dwelling units that are affordable to households earning 30% of <br />median family income, 50% of those units may already be occupied <br />by households that earn more than 30% of median family income. <br />The data in Table 21 indicate that in 2012: <br />More than one-quarter of Eugene households could not afford a <br />studio apartment according to HUD's estimate of $525 as fair <br />market rent; <br />• More than 40% of Eugene households could not afford a two- <br />bedroom apartment at HUD's fair market rent level of $806; <br />• A household earning median family income ($59,200) could afford <br />a home valued up to about $148,000. <br />Page 80 ECONorthwest Part 11 — Eugene Housing Needs Analysis <br />