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The range of home prices that might be "affordable" to moderate <br />income households is shown in Table 17. <br /> <br /> TABLE 17 <br /> <br />"AFFORDABLE" HOME PRICES FOR MODERATE INCOME HOUSEHOLDS <br /> <br />No. of 2.5 x <br />Persons in No. of Household <br />Household Bedrooms Income <br /> <br />1 1 br. <br /> <br />2 1-2 br. <br /> <br />3 2 br. <br /> <br />4 2-3 br. <br /> <br />5 3-4 br. <br /> <br />6 4 br. <br /> <br />7 4-5 br. <br /> <br />8 5 br. <br /> <br />$42,500-63,750 <br /> <br /> 48,750-73,250 <br /> 54,875-82 375 <br /> 61,000-91 500 <br /> 64,875-97 375 <br /> 68,625-102.875 <br /> 72,500-108~750 <br /> 76,250-114~500 <br /> <br />3 x <br />Household ~ <br />I nc~ )me <br /> <br />$51 .000-76,500 <br />58 .500-87,900 <br />65 ,850-98,850 <br />73 ,200-109,800 <br />77 ,850-116 , 850' <br />82,350-123,450 <br />87 ,000-130,500 <br />91,500-137,400 <br /> <br />Source: <br /> <br />1981 Bay Area SMSA Section 8 Guidelines <br />multiplied by 2.5 and 3.0 <br /> <br />1981 Bay Area SMSA median income for <br />a family of 4: $30,500 <br /> <br />"Affordability" is analyzed in two ways above with respect to <br />for-sale housing. The first column of sales prices reflects the <br />generally accepted 2.5 times gross yearly income standard used <br />by lenders in assessing a household's ability to "afford" a <br />mortgage. The second price column increases the multiplier of <br />income to a factor of three in order to plot what might be <br />considered "affordable" housing for moderate income households if <br />lending policies were relaxed. This is done in order to show the <br /> <br />-87- <br /> <br /> <br />