Definitions for "Area median income"
The HUD Area Median Incomes are updated annually. As applied to tax credit projects, the AMI is adjusted for family size.
The income level in a study area of which half of the households are above and half are below (county or jurisdiction, as applicable). (Data Source: U.S. Census)
AMI is the midpoint in the income distribution within a specific geographic area. By definition, 50% of households earn less than the median income, and 50% earn more. HUD calculates AMI levels for different communities annually, with adjustments for family size. AMI is used to determine the eligibility of applicants for both federally and locally funded housing programs.