What Is Affordable Housing?
The concept of affordable housing is a term that was developed by federal and state governments to indicate how much housing should cost based upon the median income of the county. The Federal Government considers you “cost burdened” if you are paying more than 30% of your monthly income on rent and utilities (or mortgage, property taxes and utilities.) The standard for what a household should pay in rent is 30% of their gross income (including utilities). This standard allows for a household to have adequate food, clothing, transportation, and other necessities.
The following information is based upon the 2025 Franklin County area median income according to the US Department of Housing and Urban Development.
Franklin County Definition of 100% of Area Median Income
Area Median Income (AMI) is the mid-point in income where half of the households in a region earn more than the median and half earn less than the median. This number is set yearly by the Federal Department of Housing and Urban Development (HUD) with the Executive Office of Housing and Livable Communities of the Commonwealth of Massachusetts (HLC). A household’s income is calculated by its gross income, which is the total income received before taxes and other payroll deductions.
The following chart is how much a renter must earn per year in 2025 to NOT be eligible to receive ANY level of rental assistance in Franklin County. If you earn 100% AMI or more, you are not eligible for any rental assistance.
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Household Size
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1
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2
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3
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4
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5
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6
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7
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8
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100% AMI
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$76,600
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$87,600
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$98,600
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$109,500
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$118,300
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$127,100
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$135,800
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$144,600
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30% of the monthly income is
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$1915
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$2190
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$2465
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$2738
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$2958
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$3178
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$3395
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$3615
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Greenfield Income Statistics
Average Teacher salary $43,306
Average Firefighter salary $66,703
Average Nurse salary $74,786
Average Store Clerk salary $32,053
2024 Massachusetts Minimum Wage $15.00/ hour 40 hours per week, 52 weeks per year $31,200.
Based upon the 30% standard:
The average teacher with no other family members should pay $1083/month for rent
The average firefighter with no other family members should pay $1668/month for rent
The average nurse with no other family members should pay $1870/month for rent
The average store clerk with no other family members should pay $ 801/month for rent
As is easy to see, many people in Greenfield earn less than 100% of AMI and are eligible for some level of housing subsidy if subsidies are available.
See also the Living Wage Calculator for Franklin County.
Affordable Housing
Affordable housing is built with state or federal government grants that cut the costs of building housing for the developer. In return, the developer is required to charge rents in accordance with the state and federal affordable housing requirements. (chart above) As long as the developer keeps the rents below the AMI of the county and in compliance with its contracts with the state and calculates the rent based on 30% of the renter’s income, the developer will not have to pay those grants back in accordance with the agreement with the state. If the developer decides to change that arrangement and charge market rates, all the government funds must be paid back immediately.
Affordable housing can also be located in market rate housing where the owner has agreed to accept a Section 8 certificate (HUD) or a Massachusetts Rental Voucher Program (MRVP) certificate. In those cases, the owner’s market rate cannot go above the amount HUD has determined is the fair market value of that home in this area. The renter will pay 30% of their income as rent. The difference between that 30% and the rest of the established market rate is paid by HUD or MRVP, depending on the certificate that the individual renter has been assigned. If the homeowner demands a rental price that is higher than that established by HUD or MRVP, the certificate cannot be used for that property.
Market Rate Housing
Market Rate Housing is based on existing area market values and demand without any kind of subsidies or government assistance. If a landlord decides that most of the apartments in that area of town are going for $X, the landlord can consider if the apartment to be rented is in better condition, has a better view, has a porch and others don’t, etc. and set the rent for the apartment accordingly…at the going rate, higher or lower—the market rate.
Recent Craigs List review of 1 Bedroom Apartments available in Greenfield
rent $1200-1500/month
Recent Zillow rental list 1 Bedroom Apartments available in Greenfield
rent $1300/month
For more information about affordable housing, contact: Franklin County Regional Housing and Redevelopment Authority (413) 863-9781 or https://fcrhra.org. Or Greenfield Housing Authority 413-774-2932 or https://www.greenfieldhousing.org
Other sources of information on affordability:
MHP Massachusetts Housing Partnership
CHAPA Citizens’ Housing and Planning Association
EOHLC Massachusetts Executive Office of Housing and Livable Communities
FCCLT Franklin County Community Land Trust
TOPA The Tenant Opportunity to Purchase Act is another mechanism that could support affordability. It would let cities and towns adopt a preservation, anti-displacement and tenant empowerment tool that can preserve affordable rental housing stock, provide a mechanism for tenant associations to collectively purchase their buildings, and stabilize low-income households.