Area Median Income (AMI)

Updated 2025-10-01

Area Median Income (AMI) is a measure of the median household income for a particular metropolitan area or non-metropolitan county. It is determined annually by the Department of Housing and Urban Development (HUD).

AMI represents the midpoint of a region's income distribution, meaning half of the households in that area earn more than the AMI, and half earn less.

Purpose and Use

AMI is a critical metric used to determine eligibility for various affordable housing programs, including:

• Assistance programs
• Affordable housing initiatives
• Specific loan products, such as mortgage programs.

For mortgage programs, a borrower's income is often expressed as a percentage of the AMI for their specific geographic area. These percentages serve as critical thresholds for accessing program benefits, such as reduced credit fees.

Examples in Mortgage Programs

• Freddie Mac's Home Possible: This program may target borrowers whose income is 49% or 70% of the AMI, indicating it is designed for low-to-moderate income individuals or families.
• Refi Possible: To be eligible for this program, a borrower's total annual qualifying income must not exceed 100% of the AMI for the location of the mortgaged premises.