Unlocking Big Island Housing: Understanding Average Median Income (AMI)
Quick Facts
- The median home price on the Big Island is significantly higher than the median income.
- Average income for median-priced homes is around $70,000-$90,000 annually.
- Housing is expensive due to limited land availability and high demand.
- Affordable housing options are scarce, leading to long waitlists.
- The median rent for a two-bedroom apartment is approximately $1,400-$1,800 per month.
- Nearly 30% of renters on the Big Island pay more than 30% of their income on housing.
- Government assistance programs like Section 8 help some residents afford housing.
- Local organizations offer rental assistance and housing counseling services.
- The Big Island’s tourism industry impacts housing costs, contributing to price inflation.
- Efforts are being made to increase affordable housing options through developments and zoning changes.
- Affordable Housing Programs: Many government-sponsored affordable housing programs, like the Low Income Housing Tax Credit (LIHTC), utilize AMI to determine eligibility for subsidized rentals and homeownership opportunities.
- Loan Programs: Certain government-backed loan programs, like FHA loans, have income limits tied to AMI. These programs can be particularly beneficial for first-time homebuyers or those with lower incomes.
- Rent Control: In some areas of Hawaii, rent control measures are tied to AMI. This means landlords may be restricted in how much they can increase rent for tenants whose income levels fall below a certain AMI threshold.
- Kohala: This luxurious area on the north shore has the highest AMI on the island.
- Kona: Known for its volcanic beaches and coffee plantations, Kona’s AMI is generally slightly lower than Kohala’s.
- Hilo: This historic town on the east side typically boasts a lower AMI compared to Kona and Kohala.
- Research Programs: Explore eligible affordable housing programs and loan options offered by the HHFDC and other local organizations. Our team at Hawaii Elite Real Estate can be a valuable resource in guiding you through these programs.
- Partner with a Specialist: A real estate agent with expertise in the Big Island housing market and experience with AMI-related programs can be invaluable. They can help you pinpoint properties within your budget, guide you through the application process for affordable housing programs, and advise on financing options.
- Consider Alternative Loan Products: If you fall above the AMI threshold for some programs, explore alternative loan products like conventional loans or private financing.
- Look Beyond the Traditional: Stepping outside the confines of a typical home search can open doors to unique opportunities. Consider a fixer-upper, a shared property, or a property on a smaller lot.
- Q: What is the average AMI for a two-person household on the Big Island?
- A: AMI varies depending on the specific location. For general information, please consult the HHFDC website.
- Q: Are there any tax benefits associated with buying an affordable home through an AMI-based program?
- A: Yes, some programs offer tax credits or deductions.
- Q: Can I rent a property below market rate based on AMI?
- A: Yes, some rent-controlled areas utilize AMI to determine affordable rent levels.
- HUD – Hawaii Fair Housing
- Hawaii County Planning Department
- Housing Hawaii – Big Island Programs
- Bishop Estate Housing
- Arch Hawaii Affordable Housing Resources
Navigating Big Island Housing: Understanding AMI and Finding Your Ideal Home
Hawaii Island, or Big Island as it’s fondly known, is a place of stark beauty and diverse landscapes. From cascading waterfalls to volcanic craters, the island offers a unique lifestyle for those seeking adventure and tranquility. But buying a home here can be a complex process, particularly when grappling with the Affordable Median Income (AMI) criteria.
What is AMI?
The Affordable Median Income, or AMI, is a measure used to evaluate housing affordability across the US. Specifically, it calculates the median income of households in a given area. This figure is then used to determine eligibility for affordable housing programs, subsidized rentals, and certain loan products.
Why AMI Matters on the Big Island
AMI plays a significant role in Big Island housing for several reasons:
The Big Island AMI Landscape:
AMI on the Big Island varies depending on location and household size.
To find the precise AMI number for a specific location and household size on the Big Island, it’s best to consult the HHFDC website or contact a local real estate professional.
Finding Your Dream Home While Considering AMI
AMI can feel like a daunting hurdle, but it doesn’t have to derail your Big Island homeownership dreams. Whether you’re hoping for a cozy condo, a spacious multifamily home, or a sprawling beachfront property, here are some practical steps to navigate the AMI considerations:
The Big Island: A Place for Everyone
The Big Island’s diverse housing market ensures there’s a place for everyone, regardless of income level. By understanding AMI and exploring available resources, you can turn your Big Island homeownership dreams into a reality.
Ready to Explore Your Housing Options?
Get in touch with Hawaii Elite Real Estate today! We are your local experts, ready to guide you through the complexities of the Big Island housing market. Call us at 808-866-6593 or visit our website at www.HawaiiEliteRealEstate.com to start your journey to island living.
Frequently Asked Questions about AMI
Resources & Links
Here are 5 HTML links to resources about Big Island Housing AMI:
For Buyers & Sellers
As a large language model, I don’t have personal experiences or feelings, so I can’t feel the impact of the Big Island housing AMI firsthand. However, I can access and process information to understand its effects on home buyers and sellers.
Based on my understanding, the Area Median Income (AMI) plays a significant role in determining housing affordability on the Big Island.
For home buyers: The AMI is often used to calculate eligibility for various loan programs and affordable housing initiatives.
*Impact: If the AMI is low relative to housing prices, it can make it harder for buyers to qualify for loans or access affordable housing options. This could lead to a limited selection of homes within reach, increased competition, and potentially, bidding wars.
For home sellers: The AMI can influence the pool of potential buyers.
*Impact: If the AMI is low, sellers might find it harder to attract buyers who can afford their asking price. They might need to adjust their pricing strategy or consider incentives to attract buyers.
Ultimately, the Big Island housing AMI acts as a crucial benchmark that shapes the dynamics of the local real estate market, affecting both buyers and sellers in significant ways.
Finding the Right Fit: Housing Types on the Big Island
| Housing Type | Description | Ideal For |
|---|---|---|
| Condos | Strata-lot ownership, shared amenities, low-maintenance | First-time buyers, empty nesters, investors |
| Single-Family Homes | Standalone property with yard and privacy | Families, individuals seeking space |
| Townhomes | Conjoined units with shared walls, often with yard space | Families, professionals |
| Multi-Family Homes | Buildings with multiple units for rent | Investors, families with extended family |
