Extremely low income (ELI) households are those with incomes below 30% of the Area Median Income. That figure varies across the state, so the ELI income thresholds vary as well. The threshold for a two-person household ranges from as low as $26,300 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), retirees (13% have a person on retirement income), and people on public assistance (8% report public assistance income). A four-person ELI household earning $48,000 per year can only afford $1,200 per month on housing without being cost burdened. Avoiding severe cost burden affords only $1800 per month. The number of family-sized units at that price point is vanishingly small. Even conventional “affordable” units at 80% AMI are well out of reach for these households without additional subsidy in the form of a rental housing voucher.
With so little income, ELI households are at great risk of homelessness. They have very little margin to get by if their rent is increased or if they face other unexpected financial demands. Some also need supportive services to remain stably housed. As explored later, ELI households are particularly impacted by high housing costs. The number of ELI households is likely to grow with the forecasted increase in senior households and continued polarization of wages.