Extremely low income (ELI) households are those with incomes below 30% of the Area Median Income (AMI). Income thresholds vary across the state, however, ranging from $26,300 for two-person households in Western MA and parts of the South Coast to $39,200 in Metro Boston. For a four-person household it ranges from $32,850 to $48,950.
ELI households include a wide variety of household types:
- Working households: 38% have at least one worker.
- Retired households: 13% rely on retirement income.
- Public Assistance households: 8% receive public assistance.
A four-person ELI household earning $48,000 per year can only afford $1,200 per month on housing to avoid cost burden or $1800 per month to avoid severe cost burden. Family-sized rental units at that price point are extremely limited throughout the state, creating additional barriers to stable housing for this population. Even units designated as “affordable” at 80% AMI are well out of reach for these households without additional subsidies such as rental housing vouchers.
This lack of affordable housing places ELI households at a great risk of homelessness. They have very little margin to get by if their rent is increased or if other unexpected financial demands arise. Some also need supportive services to maintain stable housing. The ELI population is likely to grow with the forecasted increase in senior households and continued polarization of wages.