Median Income Falls Slightly in San Antonio-New Braunfels Area

Decrease in Median Income in San Antonio-New Braunfels Area

The median income for a family of four residing in the San Antonio-New Braunfels region has experienced a slight decrease of $100 this year, marking it down from $88,600 to $88,500. The U.S. Department of Housing and Urban Development (HUD) reported that this is the first time this figure has dipped since 2016.

The comparison of the area median incomes (AMI) is key to establishing which households in certain regions are eligible for HUD-funded rent subsidies and other housing assistance programs.

Negligible Effect on Residents on Housing Assistance

According to local and regional housing officials the wane in AMI, a mere 0.1%, wouldn’t substantially affect the majority of resident areas who rely heavily on housing assistance. The AMI is instrumental in policymaking and development as the HUD uses it to set rents for those dwelling in federally subsidized housing. Developers use this information to build houses that qualify for public funding.

The newly adjusted AMI took effect on some of the federal programs starting from May 1st. Other programs will start recognizing it from June 1st. Veronica Gonzales, assistant director of the city’s Neighborhood and Housing Services Department (NHSD), pointed out that those applying for certain federally-funded housing programs may encounter slightly different income limits this year due to the minuscule change.

The Role of AMI in Housing Policies

AMI plays a key role in shaping housing policies as it provides a foundational benchmark for households applying for assistance programs. Household assistance programs include rental assistance, downpayment assistance, and home repair, among others. These programs mainly aim to serve households at or below 60% median income for renters and 120% for homeowners.

Interestingly, the AMI is not necessarily an accurate reflection of a region’s true cost of living. Rather, it provides a rough sketch of a region’s economic conditions related to housing. Following the minimal drop in the area’s AMI, officials from the HUD’s San Antonio Field Office Director asserted that this change wasn’t immediate cause for alarm. However, the agency’s Economic and Market Analysis Division will continue evaluating AMI levels.

The Region’s Economic Snapshot

The San Antonio-New Braunfels region’s HUD groups together several counties including Bandera, Bexar, Comal, Guadalupe, and Wilson. As a result, the area’s AMI may appear to be slightly higher than what it would be within San Antonio, where more than 250,000 residents live at or below the Census Bureau’s poverty line.

On a positive note, regardless of the marginal decrease in AMI, more residents will now qualify for rent and home repair assistance. The calculations put a limit on the amount of rent to be paid at 30% of the income. This means that property managers are not required to raise or even charge rents to the maximum allowed under the calculation.

In conclusion, while the minor decrease in AMI isn’t causing any widespread concerns, it will be interesting to monitor how this change affects housing and development policies in the region moving forward.