Housing Strategy | ENVISION FRANKLIN 29 HOUSING AFFORDABILITY When considering housing needs, a common question is “What is affordable housing?” Generally, housing is considered affordable when it costs no more than 30% of gross monthly household income. For renters, this figure includes rent and utilities. For homeowners, this figure includes mortgage payment (principal and interest), insurance, and taxes. Federal/state housing subsidies are typically reserved for lowincome households earning 80 percent or less of the median family income. In Franklin, 80 percent of the median family income is $83,612 for a family of four. Workforce (or “attainable”) housing is a term typically used to refer to middle-income households earning 81% to 120% of the median family income. In Franklin, this would be $84,657 - $125,418 for a family of four. These households are not usually eligible for subsidies, but increasingly have a hard time finding market-rate housing they can afford in many communities. As long as there is a large gap between market-rate home prices and incomes, it will be hard for many households to afford to live in Franklin, even for employees such as teachers, firefighters, and police officers who serve the community. Estimated salary ranges for selected occupations in Franklin Public school teacher $44,171 to $64,516 Police officer $54,500 to $63,500 Firefighter/EMT $55,764 to $75,255 Registered nurse $56,321 to $101,010 City of Franklin $65,457 (median) Sources: salary.com, govsalaries.com A household seeking to buy a home in Franklin earning $125,418 annually—120% of the median family income—could afford a house up to $490,731 (assuming a $25,000 down payment, no other debt, and 6% interest). However, the median home sales price in Franklin in June 2023 was $851,873.xxiii Housing Costs and Household Incomes For-sale home prices have shot up sharply in the last decade in Franklin, creating generous equity for current homeowners—but creating hurdles for new homebuyers. The median home sale price in 2015 was $347,700, compared to $592,200 in 2021. Rents have also escalated rapidly, with median rents increasing 28 percent from $1,271 in 2015 to in $1,625 in 2021. By July 2023, the median rent for all bedrooms and all property types in Franklin was $2,925.xxiv However, household incomes in Franklin have not increased nearly as rapidly as housing prices. In 2015, the median household income was $91,786. By 2021, the median income had increased by 14 percent, to $104,515. Housing “median multiple” is a broad measure of housing affordability based on the relationship between home costs and
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