Understanding Area Median Income (AMI): the Key to the Affordable Housing Crisis

If you've ever looked into affordable housing programs, applied for rental assistance, or tried to figure out whether you qualify for subsidized housing, you've almost certainly bumped into the term Area Median Income, or AMI. Once you understand AMI, you'll understand a lot more about why housing feels so out of reach for so many Winston-Salem residents.

What Is Area Median Income?

Area Median Income represents the middle income for a given geographic area. It's the point at which half of all households earn more and half earn less. Every year, the U.S. Department of Housing and Urban Development (HUD) calculates AMI for metropolitan areas across the country. For Winston-Salem, HUD uses the broader Winston-Salem Metropolitan Statistical Area (MSA), which includes Forsyth and Davie counties. The 2024 AMI figure for a family of four in the Winston-Salem MSA — as published by HUD and used by the Winston-Salem/Forsyth Housing Consortium — works out to roughly $81,900. HUD comes to this figure using a complex methodology that accounts for national income trends, regional cost factors, and statutory formulas. As a result, the HUD-determined AMI can be above or below what Census data would show for the same area. (Think of this as more of a policy number than a pure measurement.)

In reality, according to U.S. Census Bureau's American Community Survey 2023 5-year estimate, the city of Winston-Salem has a median household income of approximately $57,673, while Forsyth County as a whole sits at $65,541. Those figures are meaningful, but they mask wide variation across the city's neighborhoods — from higher-income areas in the west and northwest to lower-income communities closer to downtown, which tend to have greater access to public transportation (WSTA buses).

The AMI itself is rarely the number that matters most. What matters is the percentage of AMI that housing programs use to draw the line between "affordable" and "not affordable" — and whether your income falls above or below it.

The Percentages That Define Housing Options

HUD and most affordable housing programs slice AMI into tiers:

• Extremely Low Income: 0–30% of AMI  For a single person in Winston-Salem, this means earning up to $17,200 per year. For a family of four, it's up to $24,550.

• Very Low Income: 31–50% of AMI  A single person earning up to $28,700, or a family of four up to $40,950.

• Low Income: 51–80% of AMI  A single person earning up to $45,850, or a family of four up to $65,500.

• Moderate Income: 80–120% of AMI  A family of four earning between $65,500 and $98,300.

(All figures from the 2024 HUD Income Limits for the Winston-Salem MSA, effective June 1, 2024.)

 These tiers determine eligibility for public housing, Housing Choice Vouchers (Section 8), Low-Income Housing Tax Credit (LIHTC) apartments, HOME-funded programs, and dozens of other local and federal assistance efforts.

The "30% Rule"

There's a second standard that is critical to understanding why AMI is a key metric when considering housing affordability. Housing is considered "affordable" when a household spends no more than 30% of its gross income on housing costs. Households that spend more than that are considered "cost-burdened."

Let’s say you're a renter in Winston-Salem earning 50% of AMI, or $28,700 a year as a single person. (That’s a typical salary range for a janitor or childcare provider.) Thirty percent of your income is $8,610 per year, or about $717 per month. That's your affordable rent ceiling.

Bear in mind that AMI calculations and the 30% affordability rule are both based on gross income — income before taxes, health insurance, retirement contributions, and other deductions are taken out. That's actually one of the issues with the 30% rule.

The Winston-Salem Reality Check

The citywide average rent for a one-bedroom apartment was approximately $1,118 per month as of mid-2025, with studios averaging around $1,000 and two-bedroom units running about $1,239. In more desirable or revitalized neighborhoods, like downtown and West End, average rents climb considerably higher, reaching $1,859 per month in parts of the urban core.

Here's what that looks like against the AMI tiers for a single person:

Income Level	Annual Income	Representative Job in WS	Affordable Monthly Rent (30%)	Avg. 1BR Rent in W-S
30% AMI	$17,200	food service	$430	$1,118
50% AMI	$28,700	janitor	$717	$1,118
60% AMI	$34,440	CNA	$861	$1,118
80% AMI	$45,850	teacher	$1,146	$1,118

In plain terms: a single person would need to earn close to 80% of the Area Median Income just to afford a typical one-bedroom apartment in Winston-Salem without being cost-burdened. For the many residents earning at or below 50% of AMI, even modest market-rate units are financially out of reach.

Who Feels This Most?

The gap between incomes and housing costs hits renters hardest. The median household income for renters in Winston-Salem is just $36,103 — far below the citywide median that includes homeowners. At that income, the 30% rule allows for roughly $903 per month in rent. That's a number increasingly hard to find anywhere in the city, and nearly impossible to find in neighborhoods undergoing revitalization.

Younger households feel it acutely, too. Winston-Salem residents under 25 leading their own households earn a median income of just $49,242. That means even a household with a working young professional faces a tight ceiling when it comes to rent.

This is why Winston-Salem has faced a documented shortage of truly affordable homes — not just housing that feels cheaper than Charlotte or Raleigh, but housing that people earning service-industry wages, caregiving jobs, and entry-level salaries can actually pay for every month.

The Bottom Line

Area Median Income isn't just a bureaucratic formula. It's the measuring stick that determines whether a city's housing supply is actually working for the people who live there. In Winston-Salem, a significant portion of residents — and the large majority of renters — earn well below the AMI thresholds that would make even modest rental housing affordable without hardship. The gap between what people earn and what housing costs is wide, and in neighborhoods experiencing new investment, it is growing wider.

Understanding AMI is the first step. Closing the gap is the real work, though. That requires sustained investment in affordable housing programs, thoughtful policy, and community advocacy that keeps real Winston-Salem residents at the center of the conversation.

Data sources:

HUD 2024 Income Limits for the Winston-Salem MSA (Winston-Salem/Forsyth Housing Consortium, effective June 1, 2024).

U.S. Census Bureau American Community Survey 2023 5-year estimates.

Apartments.com rental market data (updated June 2025).

RentCafe Winston-Salem market data (2025).

Point2Homes Winston-Salem income demographics (2024).