TABLE 1
AFFORDABLE RENT CALCULATIONS
2023 INCOME STANDARDS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
COSTA MESA, CALIFORNIA
Studio Units
One-Bedroom
Units
Two-Bedroom
Units
Three-
Bedroom Units
I. General Assumptions
Area Median Income (AMI) 1 $89,450 $102,250 $115,000 $127,800 Monthly Utilities Allowance 2 $95 $111 $148 $183
II. Affordable Rent Calculations
A. Very Low Income - Rent Based on 50% AMI 3
Benchmark Annual Household Income $44,725 $51,125 $57,500 $63,900 Percentage of Income Allotted to Housing Expenses 30% 30% 30% 30% Annual Income Available for Housing Expenses $13,418 $15,338 $17,250 $19,170 Monthly Income Available for Housing Expenses $1,118 $1,278 $1,438 $1,598 (Less) Monthly Utilities Allowance (95) (111) (148) (183) Maximum Allowable Rent $1,023 $1,167 $1,290 $1,415
B. Low Income - Rent Based on 80% AMI
4 Benchmark Annual Household Income $71,560 $81,800 $92,000 $102,240 Percentage of Income Allotted to Housing Expenses 30% 30% 30% 30% Annual Income Available for Housing Expenses $21,468 $24,540 $27,600 $30,672 Monthly Income Available for Housing Expenses $1,789 $2,045 $2,300 $2,556 (Less) Monthly Utilities Allowance (95) (111) (148) (183) Maximum Allowable Rent $1,694 $1,934 $2,152 $2,373
C. Moderate Income - Rent Based on 110% AMI
3 Benchmark Annual Household Income $98,395 $112,475 $126,500 $140,580 Percentage of Income Allotted to Housing Expenses 30% 30% 30% 30% Annual Income Available for Housing Expenses $29,519 $33,743 $37,950 $42,174 Monthly Income Available for Housing Expenses $2,460 $2,812 $3,163 $3,515 (Less) Monthly Utilities Allowance (95) (111) (148) (183) Maximum Allowable Rent $2,365 $2,701 $3,015 $3,332
1 2
3 Based on the calculation methodology defined in California Health & Safety Code Section 50053. 4 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505.
Based on the 2023 Orange County household incomes published by the California Department of Housing & Community Development (HCD). The benchmark household size is set at the number of bedrooms in the unit plus one.
Based on the Orange County Housing Authority utilities allowance schedule effective as of October 1, 2023. Assumes: Electric Cooking, Electric Heating, and Electric Water Heater; and Basic Electric.
Prepared by: Keyser Marston Associates
File name: 11 30 23 Rent Comparison; Incl Aff Rent Page 1 of 2 -1-
Attachment 4
TABLE 2
AFFORDABLE RENT CALCULATIONS
2023 INCOME STANDARDS
APARTMENT DEVELOPMENT
GOVERNMENT CODE SECTION 65915 RENTS
COSTA MESA, CALIFORNIA
Studio Units
One-Bedroom
Units
Two-Bedroom
Units
Three-
Bedroom Units
I. General Assumptions
Area Median Income (AMI) 1 $89,450 $102,250 $115,000 $127,800 Monthly Utilities Allowance 2 $95 $111 $148 $183
II. Affordable Rent Calculations
A. Very Low Income - Rent Based on 50% AMI 3
Benchmark Annual Household Income $44,725 $51,125 $57,500 $63,900 Percentage of Income Allotted to Housing Expenses 30% 30% 30% 30% Annual Income Available for Housing Expenses $13,418 $15,338 $17,250 $19,170 Monthly Income Available for Housing Expenses $1,118 $1,278 $1,438 $1,598 (Less) Monthly Utilities Allowance (95) (111) (148) (183) Maximum Allowable Rent $1,023 $1,167 $1,290 $1,415
B. Low Income - Rent Based on 60% AMI
3 Benchmark Annual Household Income $53,670 $61,350 $69,000 $76,680 Percentage of Income Allotted to Housing Expenses 30% 30% 30% 30% Annual Income Available for Housing Expenses $16,101 $18,405 $20,700 $23,004 Monthly Income Available for Housing Expenses $1,342 $1,534 $1,725 $1,917 (Less) Monthly Utilities Allowance (95) (111) (148) (183) Maximum Allowable Rent $1,247 $1,423 $1,577 $1,734
C. Moderate Income - Rent Based on 110% AMI
3 Benchmark Annual Household Income $98,395 $112,475 $126,500 $140,580 Percentage of Income Allotted to Housing Expenses 30% 30% 30% 30% Annual Income Available for Housing Expenses $29,519 $33,743 $37,950 $42,174 Monthly Income Available for Housing Expenses $2,460 $2,812 $3,163 $3,515 (Less) Monthly Utilities Allowance (95) (111) (148) (183) Maximum Allowable Rent $2,365 $2,701 $3,015 $3,332
1 2
3 Based on the calculation methodology defined in California Health & Safety Code Section 50053.
Based on the 2023 Orange County household incomes published by the California Department of Housing & Community Development (HCD). The benchmark household size is set at the number of bedrooms in the unit plus one.
Based on the Orange County Housing Authority utilities allowance schedule effective as of October 1, 2023. Assumes: Electric Cooking, Electric Heating, and Electric Water Heater; and Basic Electric.
Prepared by: Keyser Marston Associates
File name: 11 30 23 Rent Comparison; DB Aff Rent Page 2 of 2 -2-