Housing

Affordable housing has its own language. Listings and leasing offices often use acronyms like AMI, LIHTC, and PHA without explaining them—making the process feel harder than it needs to be.

This plain-English glossary explains the most common affordable housing terms you’ll see when searching for low-income apartments, applying, getting verified, and completing annual recertification. You don’t need to memorize everything—use it as a reference whenever you run into a confusing word.

Overview: How to Use This Glossary

When you see a term in a listing or email:

  • Look it up here
  • Match it to your situation (income-restricted vs voucher vs public housing)
  • Ask the property how that term applies to their rules

Different programs can use similar words with slightly different policies, so always confirm with the leasing office when it matters.

Core Income and Eligibility Terms

AMI (Area Median Income)
A local income benchmark used to set income limits and rent caps. AMI varies by location and household size. Listings often say “50% AMI” or “60% AMI.”

AMI Tier (30%, 50%, 60%, 80% AMI)
A target income level used by a program or building. Lower tiers usually have lower rents and higher demand.

Household Size
The number of people who will live in the unit as their primary residence. Household size affects income limits and unit size eligibility.

Household Composition
Who is in the household (adults, children, relationships, custody arrangements). Used for eligibility and occupancy rules.

Income Limit
The maximum income allowed for a household to qualify for a specific unit tier (for example, a 2-bedroom at 60% AMI).

Gross Income
Income before taxes and deductions. Affordable housing calculations often start with gross income.

Annualized Income
An estimate of what you will earn over the next 12 months, based on current income and documentation.

Variable Income
Income that changes over time (overtime, tips, commissions, seasonal work). Often requires extra documentation.

Assets
Money or resources you own, such as bank accounts, retirement accounts, stocks, or property. Some programs review assets and may count certain asset-related income.

Program Types and Acronyms

LIHTC (Low-Income Housing Tax Credit)
A program that encourages developers to build/maintain affordable housing. LIHTC properties are usually privately owned with income-restricted units and program rent limits.

Income-Restricted / Income-Restricted Unit
A unit that requires you to qualify under an income limit. Rent is often set by program rules, not negotiated.

Subsidized Housing
Housing supported by a subsidy that reduces rent costs. Can include project-based assistance or vouchers.

Section 8 (Housing Choice Voucher / HCV)
A tenant-based voucher administered by a housing authority that helps pay rent at eligible units, subject to program rules.

PBV (Project-Based Voucher)
A voucher subsidy attached to a specific building/unit rather than the tenant. You receive assistance only while living in that unit.

Public Housing
Housing owned and managed by a local housing authority. Rent is often income-based under program rules.

PHA (Public Housing Authority)
The local agency that administers public housing and Section 8 vouchers in a specific area.

Property-Based Assistance
A subsidy that stays with the property, not the tenant (similar concept to PBV). If you move, the assistance does not move with you.

Rent and Cost Terms

Rent Limit
A maximum rent set by program rules for a specific unit size and AMI tier.

Gross Rent
A program concept that generally includes tenant rent plus a utility allowance. Used to ensure total housing cost stays within program limits.

Utility Allowance
An estimated utility cost used in rent calculations when the tenant pays some utilities. It can reduce the rent charged by the landlord (because utilities are expected separately).

Tenant-Paid Utilities
Utilities you are responsible for paying directly (electric, gas, etc.). Important for budgeting.

Included Utilities
Utilities paid by the landlord as part of rent (common examples: water/trash; sometimes electric/gas).

Security Deposit
An upfront deposit held to cover damages or unpaid charges. Amount and rules vary by property.

Prorated Rent
Partial rent for a move-in that starts mid-month.

Waitlist and Selection Terms

Waitlist
A list of applicants waiting for units to become available. Being on the waitlist is not the same as being approved.

Waitlist Open / Waitlist Closed
Open means accepting applications; closed means not accepting new applicants.

Lottery
A random selection system used when demand is extremely high. Applicants submit during a window, then the property selects processing order randomly.

Preferences (Priority Categories)
Rules that prioritize certain applicants (for example, local residents, seniors, or people with disabilities). Policies vary by property and program.

First-Come, First-Served
A selection method where applications are processed in the order received (often still influenced by unit size and preferences).

Application, Screening, and Verification Terms

Application Packet
The full set of forms and documents you submit to apply and verify eligibility.

Eligibility
Meeting program rules (income limit, household rules, student rules, etc.). Eligibility is typically verified before move-in.

Certification (Income Certification)
The formal process of verifying your income, household, and eligibility under program rules.

Recertification (Annual Recertification)
A yearly review where you confirm eligibility again and provide updated documents.

Third-Party Verification
When a leasing office contacts an employer, agency, or landlord to confirm information.

Verification Form
A form used to request information from employers, benefit providers, banks, or landlords.

Background Check
A screening that may review criminal history, depending on property policy and local law.

Credit Check
A screening that may review credit history. Not all affordable properties use credit scores the same way.

Rental History Screening
A review of prior leases, payment history, evictions, or landlord references.

Occupancy and Household Rules

Occupancy Standards
Rules about how many people can live in a unit based on bedroom count and program policy.

Authorized Occupant
A person approved to live in the unit and listed in the household file/lease.

Unauthorized Occupant
Someone living in the unit without approval (a lease/program violation).

Guest Policy
Rules about how long guests may stay. Exceeding limits can be treated as an unauthorized occupant situation.

Live-In Aide
A person who lives in the unit to provide care for a resident with a disability, with documentation and approval. Often treated differently than a household member.

Common Listing Phrases (What They Usually Mean)

“Now Leasing”
Units may be currently available or becoming available soon. Still requires eligibility verification.

“Income Restricted”
You must meet income limits. Rent is typically set by program rules.

“Affordable”
A broad marketing word. Always ask which program applies and what income limits are used.

“Workforce Housing”
Often refers to moderate-income tiers (sometimes around 80% AMI), but definitions vary.

“Below Market Rate (BMR)”
Rent set below market. Often tied to local affordable programs or AMI tiers.

Pros

  • Less confusion when reading listings and documents.
  • Faster applications because you understand what’s being asked.
  • Better conversations with leasing offices when you use the right terms.

Cons

  • Terms vary by program and local policy—always confirm details.
  • Acronyms can be overwhelming at first.

Conclusion: Understanding the Terms Gives You Control

Affordable housing feels complicated largely because the vocabulary is unfamiliar. Once you understand the core terms—AMI, income limits, waitlists, certification, and utility allowances—you can apply with confidence, ask better questions, and avoid common mistakes that slow people down.

If you want, you can turn this glossary into a searchable page on your website, and add short “tooltips” next to terms like AMI and utility allowance across your listings and application guides.