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Another approach to defining workforce housing is to consider the AMI, i.e., households
<br />earning over 80% AMI (households with annual incomes over 80% of AMI are not qualified to
<br />access most government or nonprofit housing subsidies but cannot afford market -rate
<br />housing).
<br />In Pleasanton, this generally refers to households earning between 80% and 180% AMI (e.g.,
<br />a four -person household earning between $110,000 and $225,000 per year). This can be
<br />reviewed in conjunction with the typical Pleasanton home value estimated at $1,584,380
<br />(Zillow, December 2021) and the median rent at $2,290 per month3 (ACS, 2019 5 -Year
<br />Estimates). Table 1 below provides a summary for the ability to pay for housing, based on
<br />household size4. As shown, even at 200% AMI, a household of four would not be able to afford
<br />a for -sale home in Pleasanton. Rental prices are relatively more affordable, with most
<br />households making 80% AMI or more, able to afford the average -priced rental unit. However,
<br />since the data is based on the average rental or for -sale costs, it likely hides some of the more
<br />nuanced aspects of affordability, where, for example, that larger and more recently constructed
<br />units are likely to be higher priced and could potentially be unaffordable to many households.
<br />Table 1: Ability to Pay for Housing (entries in red text indicate the for -sale or rent price
<br />exceeds that affordable to a household)
<br />Pleasanton Ability to Pay for Housing Above 80% AMI
<br />Number of Persons in Household
<br />1
<br />2
<br />3
<br />4
<br />Median (100% Area Median Income)
<br />Annual Income Limit
<br />$87,900
<br />$100,500
<br />$113,050
<br />$125,600
<br />Monthly Income
<br />$7,325
<br />$8,375
<br />$9,421
<br />$10,467
<br />Max. Monthly Gross Rent'
<br />$2,198
<br />$2,513
<br />$2,826
<br />$3,140
<br />Max. Purchase Price 5% down2
<br />$388,000
<br />Max. Purchase Price 20% down3
<br />$506,000
<br />Moderate (120% Area Median Income)
<br />Annual Income Limit $105,500
<br />$120,550 $135,650
<br />$150,700
<br />Monthly Income $8,792
<br />$10,046 $11,304
<br />$12,558
<br />Max. Monthly Gross Rent' $2,638
<br />$3,014 $3,391
<br />$3,768
<br />Max. Purchase Price 5% down2 $495,500
<br />$568,000 $640,500
<br />$713,250
<br />Max. Purchase Price 20% down3 $648,250
<br />$743,250 $838,500
<br />$934,750
<br />150% of Area Median Income
<br />Annual Income Limit
<br />$131,850
<br />$150,750 $169,575
<br />$188,400
<br />Monthly Income
<br />$10,988
<br />$12,563 $14,131
<br />$15,700
<br />Max Monthly Gross Rent'
<br />$3,296
<br />$3,769 $4,239
<br />$4,710
<br />Max. Purchase Price 5% down2
<br />$559,400
<br />$646,200 $732,400
<br />$818,700
<br />Max. Purchase Price 20% down3
<br />$754,000
<br />$871,300 $987,500
<br />$1,104,000
<br />3 Other sources with more current data estimate that rent for a one-, two-, and three-bedroom unit is $2,278,
<br />$2,700, and $3,550, respectively.
<br />4 Table 1 assumes an interest rate 2.875% for purposes of calculation of the mortgage payment. While this rate
<br />may be feasible under some market conditions, current interest rates are higher.
<br />Housing Element Update, P21-0751 Planning Commission
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