Over 200 homes were added in Madison in October, according to the City of Madison. This is part of the Madison Common Council’s Housing Forward initiative that was announced in June. District 8 Alder MGR Govindarajan said these additions are described as Area Median Income housing.
“If you’re making $100,000, and that’s the median income in Madison, then hypothetically these homes are going to be priced as if you make only $60,000,” MGR said.
AMI works by adjusting the price of the housing to the income of the average person living in the area, MGR said. Rent is calculated as a quarter of annual salary, then changed based on the average median income, according to MGR…