Subsidized Affordable Apartments
Subsidized apartments or housing means that you receive a monthly subsidy that assists you with the payment of the rent. This monthly subsidy is paid directly to the landlord. In a subsidized apartment you typically pay 30% of your actual income toward the rent. The subsidy pays the balance. For example, if an apartment rents for $1,200 and your monthly income is $2,000, you pay $600 toward the rent (30% of your income) and the subsidy pays $600, for a total of $1,200. If your income goes up due to a promotion, your share of the total rent increases, still using the same formula of 30% of income for your contribution. If your income goes down due to a job loss, reduction in hours or other reasons, your share of the rent goes down, using the same formula.
There are two general types of subsidized affordable housing: