Understanding Income-Based Housing Programs in North Carolina

Income-based housing in North Carolina refers to residential programs where rent or housing costs are calculated based on how much money a household earns each year. These programs exist because housing is often the largest expense for families, and when rent becomes too high relative to income, people struggle to pay for food, healthcare, and other necessities.

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The federal government funds most income-based housing through programs managed by state and local agencies. In North Carolina, the Housing Finance Agency oversees many of these initiatives. The basic concept is straightforward: if your household income falls within certain limits, you may be able to rent an apartment or home where your monthly payment represents a smaller percentage of your take-home pay than market-rate housing would cost.

North Carolina has approximately 73,000 housing units that receive some form of federal subsidy or income-based restriction. These units exist in cities, towns, and rural areas throughout all 100 counties. Charlotte, Raleigh, Greensboro, and Winston-Salem have the largest numbers of such properties, but programs operate statewide. According to the National Housing Law Project, about 2.1 million North Carolina residents have incomes low enough to potentially use income-based housing, though only a fraction of available units serve this population.

Income-based housing differs from other assistance programs. For example, some people receive housing vouchers they can use at any rental property willing to participate. Others live in buildings specifically constructed or designated as affordable. Some programs combine both approaches. Understanding which type exists in your area helps you know what options to explore.

Practical Takeaway: Start by understanding that income-based housing means your rent would be tied to your earnings, typically ranging from 25% to 30% of gross monthly income. This framework helps you evaluate whether exploring these options makes sense for your situation.

Income Limits and How They Work

Income limits determine who can potentially use income-based housing programs. These limits vary by family size and geographic location within North Carolina. The limits are based on the Area Median Income (AMI), which represents the middle income level in a specific county or region. The U.S. Department of Housing and Urban Development (HUD) calculates these amounts annually.

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For 2024, here are examples of income limits in major North Carolina areas for programs serving households at 60% of AMI:

  • Mecklenburg County (Charlotte area): $39,960 for one person; $45,600 for two people; $51,240 for three people; $56,880 for four people
  • Wake County (Raleigh area): $38,100 for one person; $43,560 for two people; $48,960 for three people; $54,300 for four people
  • Guilford County (Greensboro area): $36,600 for one person; $41,820 for two people; $47,040 for three people; $52,260 for four people
  • Forsyth County (Winston-Salem area): $35,820 for one person; $40,920 for two people; $46,020 for three people; $51,060 for four people

These numbers represent 60% of area median income. Some programs serve households at lower percentages (30%, 40%, or 50% AMI), which means smaller income limits. Rural areas often have lower income limits than urban areas because median incomes differ. A family earning $40,000 annually might fall within limits in rural Duplin County but exceed them in Wake County.

Income calculations include gross monthly earnings from employment, self-employment, Social Security, disability payments, unemployment benefits, child support, and other regular income sources. Some programs exclude certain income types or apply deductions for child care costs or medical expenses for elderly or disabled household members. These variations mean two households with the same total income might qualify differently depending on the specific program and their family circumstances.

North Carolina also has programs serving households at different income levels. Some focus on households earning less than 30% of AMI (extremely low income), others serve 60-80% of AMI (moderate income). This range means programs exist for various income levels, not just the poorest families.

Practical Takeaway: Check the specific income limits for programs in your county. Your gross household income—not take-home pay—determines whether you fall within limits. If you're close to a limit, understand what income sources count, as some may not be included in calculations.

Types of Income-Based Housing Programs Available

North Carolina residents can potentially access several distinct income-based housing program types. Understanding the differences helps you identify which programs might serve your needs.

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Public Housing: Public housing consists of properties owned by local public housing authorities. In North Carolina, there are 53 public housing authorities managing approximately 22,000 units. These are apartment complexes or scattered single-family homes where rent is set at 30% of household income. The Charlotte Housing Authority, Raleigh Housing Authority, and Greensboro Housing Authority are among the larger systems. Public housing serves very low-income families, with most residents earning less than 50% of AMI.

Housing Choice Voucher Program (Section 8): This program provides vouchers that subsidize rent at privately-owned apartments and homes. The housing authority pays a portion of rent directly to the landlord, and residents pay the difference. Residents typically contribute 30% of their income toward rent. North Carolina has approximately 35,000 Housing Choice Vouchers distributed across local housing authorities. Unlike public housing, you can use a voucher at any participating private property, giving you more neighborhood choice.

Project-Based Rental Assistance (PBRA): These are privately-owned or nonprofit-owned buildings where federal rent subsidies attach to specific units. The building itself is designated as affordable housing. Approximately 16,000 North Carolina units operate under PBRA programs. Examples include properties managed by nonprofit organizations serving seniors, people with disabilities, or families with low incomes. Rent is typically 30% of income, but you must live in that specific building.

Low-Income Housing Tax Credit (LIHTC) Properties: Federal tax credits incentivize developers to build or renovate affordable housing. Hundreds of North Carolina properties receive tax credits, creating approximately 8,000 affordable units. These buildings aren't specifically income-restricted in all cases, but many set aside units for households at 50-60% AMI. These properties often look like market-rate apartments but charge below-market rents.

Community Land Trusts (CLTs): Some North Carolina communities have CLTs that own land and lease it long-term to homebuyers, reducing purchase costs. Charlotte, Raleigh, Durham, and Greensboro have active CLTs. This model works differently from rental programs but provides affordable homeownership for income-based households.

Practical Takeaway: Map out which program types exist in your area. If you value neighborhood choice, voucher programs might suit you. If you prefer community-based settings, nonprofit PBRA properties might be better. Knowing your local options narrows your focus considerably.

How to Locate Income-Based Housing in Your Area

Finding income-based housing requires knowing where to look and what information to gather. North Carolina has several established resources for locating properties and programs.

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Contact Your Local Housing Authority: Every North Carolina county has at least one local public housing authority managing public housing units and Housing Choice Vouchers. These authorities maintain lists of properties, information about income limits, and details about programs. You can find your local housing authority through the North Carolina Housing Finance Agency website or by searching "[County name] Housing Authority." For example, the Durham Housing Authority, Chapel Hill Housing Authority, or Asheville Housing Authority can provide information specific to their service areas.

Use Online Databases: HUD maintains a database of affordable housing properties at huduser.gov/portal/datasets/lihtc.html. You can search by state and county to see LIHTC properties. The National Housing Preservation Database at preservationdatabase.org also lists properties receiving federal funding. These databases let you identify specific buildings and their contact information.

Search Nonprofit and Community Development Organizations: Many nonprofits develop and manage