Denton city officials are raising concerns about the disparity between the area’s median income (AMI) and that of the larger Dallas metro area. The United States Department of Housing and Urban Development (HUD) uses AMI to determine affordable rent rates, but the figures for Denton are calculated using data from several counties, including Dallas, Collin, Hunt, Denton, Rockwall, Kaufman, and Ellis counties.

According to HUD data from 2025, the AMI for a family of four in the Dallas region is $117,300 annually, while Denton’s AMI stands at $80,900. This discrepancy means that when state and federal agencies set affordable housing prices in Denton, they base it on the higher Dallas area median income, which does not accurately reflect Denton’s economic reality.

Understanding AMI Calculations

HUD calculates AMI using data from the US Census Bureau, focusing on the incomes of families of four. The median income is determined by finding the point where half of the families earn more and half earn less. This figure is then adjusted for different household sizes to establish the AMI for various family configurations.

The goal of affordable housing is to ensure that tenants spend no more than 30% of their monthly income on housing. Those who spend more than 30% are considered cost-burdened, and those spending over 50% are severely cost-burdened.

Local Efforts to Address Affordability

In response to these challenges, Denton city leaders have adopted new affordability criteria for the City Council to approve federally funded tax credits. These criteria emphasize housing reserved for those earning 50% and 30% of the Dallas AMI, potentially leading to rent reductions for Denton residents.

Currently, there are approximately 200 units in development and 624 completed units in Denton that are priced based on the 50% and 30% Dallas AMI data. This initiative aims to better align housing costs with the local economic conditions, providing relief to residents who are struggling with the current affordability standards.

Original reporting: Community Impact — Denton — read the source article.