Attainable vs. Affordable Housing: What’s the Difference?

Sponsors use the terms “attainable” and “affordable” when referring to housing that’s targeted towards everyday, working American families.

These terms are sometimes used interchangeably in real estate, but they’re not the same. Their differences matter for accredited investors who invest in private real estate funds through real estate investment firms like DLP Capital.

What is attainable housing?

Attainable housing is market-rate single-family or multifamily housing designed for households that earn incomes roughly on par with the average in their area. Firms like DLP Capital focus on identifying, acquiring, and developing these attainable housing assets—an asset class that offers strong demand, stable returns, and resilience across economic cycles.

This housing segment caters to a stable and underserved tenant base of essential workers, such as teachers, nurses, and firefighters, who fall between subsidized programs and high-cost market-rate housing.

Attainable housing is priced to be affordable for renter households earning slightly below or above the area’s typical income. Housing is considered attainable when its rent does not exceed 30% of the Area Median Income (AMI), which is the 50th percentile gross income for households in a given location.¹ However, attainable housing can target residents earning as little as 80% and as much as 120% of the AMI.¹

As this table shows, in a city where the AMI is $72,000 per year or $6,000 per month, housing options with monthly rents between $1,440 and $2,160 are considered attainable.

What is affordable housing?

Affordable housing is specifically aimed at low-income households. The defining feature of affordable housing is its reliance on government subsidies. These include the Low-Income Housing Tax Credit (LIHTC) for developers and Section 8 housing choice vouchers for residents.²

While affordable housing can be privately owned, this segment of housing also includes public housing, which is affordable housing that is built, owned, and operated by the government.
 

Why is the difference between attainable and affordable housing important for investors?

The difference between these two segments of housing has tangible implications for investors.

Attainable housing demand

The fact that attainable housing is a market-rate product not reliant on rental subsidies is one important distinction.

Instead, returns are market-driven and can potentially be enhanced by developers like DLP Capital, who build low-turnover, high-occupancy Thriving Communities that address residents’ wants and needs. For investors, this means access to a resilient, in-demand asset class with the potential for stable, long-term passive income and growth.

By focusing on moderate-income households, attainable housing allows investors to meet the demand from consistently employed “renters-by-necessity” who have a pressing need for quality housing.

Demand can even increase when the economy softens, since households tightening their budgets may move from higher-cost apartments to attainable housing communities. This stability in demand can help generate steady rental income and reduce vacancy risk, offering a potentially resilient investment opportunity to investors across all market cycles. 

Attainable housing supply

Attainable housing remains an attractive opportunity due to chronic undersupply. Estimates from the Brookings Institution suggest that the country is short 4.9 million residential units.³ This comes at a time when much of the existing housing stock is unaffordable for low- and medium-income households.⁴

An undersupply of attainable housing for a demographic group in pressing need of it presents an opportunity for investors to finance the building of safe, high-quality, Thriving Communities. By investing in the ground-up construction of new multifamily housing through the DLP Building Communities Fund and DLP Lending Fund, accredited investors can pursue success with significance by making an impact on America’s affordable housing crisis while targeting competitive non-concessionary returns. 

DLP Capital finances the building of attainable workforce housing communities across the Sunbelt. Learn more today.

FAQs

What does attainable mean in apartments?

An attainable apartment community is defined as a housing development whose average rents do not exceed 30% of the area median income (AMI). In other words, an apartment is attainable when it is realistically affordable for moderate-income households in that area.

What is the difference between attainable and affordable?

Attainable housing refers to rental communities designed for moderate-income households. No tenant subsidies are involved in driving demand for attainable housing. On the other hand, affordable housing is aimed at low-income households and is often subsidized through programs such as the Low-Income Housing Tax Credit (LIHTC) and housing choice vouchers for renters.

How does attainable housing work?

Attainable housing is a form of market-rate housing whose rents do not exceed 30% of the area median income, or AMI. Put another way, attainable housing is geared towards moderate-income households who may have trouble affording other housing options in the area.

What is the rule of thumb for housing you can afford?

One rule of thumb for calculating how much you can afford to pay for housing is to take 30% of your gross monthly income. That’s the maximum amount you should allocate to your housing budget.

What's the difference between affordable housing and public housing?

Affordable housing is publicly or privately owned housing that’s supported by government subsidies, such as the Low-Income Housing Tax Credit (LIHTC) for developers and housing choice vouchers for tenants. On the other hand, public housing refers to affordable housing that is owned by the government.