Northwest Michigan
Coalition to End Homelessness
What is 'Deeply' Affordable?
Deeply affordable housing refers to housing that is affordable for extremely low-income households, typically those earning 0 to 30% of the Area Median Income (AMI). At this level of income, housing costs can consume a majority of a household’s limited budget, making it nearly impossible to cover essential expenses like food, healthcare, and transportation if rent is not specifically tailored to this income band. Deeply affordable units are often subsidized through a combination of public funds, deep subsidies, and nonprofit or government-led development programs to ensure rents are set well below market rates. The goal is to prevent housing insecurity and homelessness by providing stable, long-term housing options that people can actually afford on their limited incomes.
In practice, deeply affordable housing typically includes rental units with monthly rents that align with a percentage of the renter’s income, commonly 30% or less. For households at 0-30% AMI, this often translates to rents that are subsidized to a level well under market-rate equivalents, sometimes with the renter paying a share based on income and the rest covered by project-based subsidies, vouchers, or other public funding streams. Because these properties must remain affordable for the long term, they usually include stronger oversight, caps on rent increases, and mandates to prioritize tenants who earn within the target income band. The result is a safety net that reduces the risk of cost burdens and housing instability for the most vulnerable residents.
Creating and maintaining deeply affordable housing involves coordinated policy and financing structures. Public–private partnerships, inclusionary zoning, capital subsidies, and ongoing operating subsidies are common tools to bridge the gap between construction/maintenance costs and affordable rents. Land use policies, regulatory relief, and streamlined permitting can also help lower development costs. Importantly, deeply affordable housing is not just about a single building; it’s about scalable, long-term solutions that can be replicated across neighborhoods and cities to address chronic shortages. By prioritizing the needs of the lowest-income residents, communities can promote stability, health, and economic opportunity while mitigating the broader social costs associated with housing insecurity.
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Housing Vouchers
HCV (Housing Choice Voucher) and PBV (Project-Based Voucher) are both HUD rental assistance tools used in Michigan, but they operate differently. HCV vouchers are tenant-based: eligible households receive a voucher they can use to rent any qualifying unit in the private market within the Public Housing Authority's (PHA) jurisdiction. The subsidy follows the tenant, not the building, and the tenant can move if they locate a new unit that meets program rules. Landlords participate voluntarily and must pass inspections and sign a HAP contract with the PHA; the payout is tied to the tenant’s income and the unit’s rent, within program limits.
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PBV vouchers are project-based: the subsidy is attached to a specific housing project or building rather than to a tenant or unit. Tenants in PBV units receive a voucher that covers the portion of rent above their income, but the subsidy stays with the project even if the tenant moves. PHAs designate which units within a project are PBV units, and the contractor or property owner signs a Housing Assistance Payment contract with the PHA for that project. PBV units are typically more limited in choice of location but can offer guaranteed units with long-term affordability; eligibility and project availability vary by local PHA (e.g., Traverse City Housing Commission, Michigan State Housing Development Authority). For precise rules, click the link below.
