What Are AMI and Discretionary Funds?
What is included in median income?
The Median is defined as being the middle number in a group. So if you have three incomes in one household of $35,000, $40,000, and $45,000, the median income is $40,000. The Census Bureau counts households with no income in its calculation when it determines median household income in the United States.
Beyond Housing SC’s Goal is to create more Discretionary income.
What is Discretionary Income
Discretionary income is equal to disposable income minus all payments for necessities, including a mortgage or rent payment, health insurance, food, and transportation. This portion of disposable income can be spent at will. Discretionary income is the first to shrink after a job loss or pay reduction. Businesses that sell discretionary goods, like jewelry or vacation packages tend to suffer the most during recessions. Their sales are watched closely by economists for signs of both recession and recovery.
Beyond Housing SC’s rental qualifications dictates spending no more than 30% of your income on housing each month. The reasoning behind it is that by capping your rent payment at 30% of your monthly income, you’ll still have plenty of money left to cover other living expenses and to work toward your financial goals