​This three-part series explains how communities, employers, and policymakers can use clear, data-driven tools to discuss affordability and design better programs in Washington.

Each article will break down the core idea in plain language, show how it is calculated, and provide real-world examples of how it guides decisions on housing, wages, and local investment. Today’s focus is on the use of AMI and living wage calculations to drive policies. By the end, you will know what the metric means, why it varies by place and family size, and how it can help leaders match resources to need so families and businesses can thrive

The Area Median Income (AMI) is a benchmark built from what households actually earn in a region and ranked from lowest to highest. The median is the midpoint. Living wages are different. It is a cost-based estimate of what a full-time worker needs to cover basic needs in a place based on local prices for housing, food, childcare, health care, transportation, and taxes. In short, AMI measures income levels in a community, while living wage measures the cost to get by.

As the two metrics answer different questions, they are used in different ways. A living wage helps leaders and employers discuss affordability and the gap between paychecks and basic costs. AMI helps governments decide who qualifies for help, how much help is needed, and where to target the limited dollars. AMI is reported by household size and geography; therefore, a family of four in a high-cost county will have a higher AMI threshold than a single adult in a rural county.

Housing policies rely on AMI every day. The U.S. The Department of Housing and Urban Development (HUD) sets local income limits such as 30, 50, and 80 percent of AMI to define extremely low, very low, and low income, respectively. These limits set eligibility for vouchers and public housing, and they cap maximum rents and incomes in programs such as low-income housing tax credit and the HOME investment partnership program. Cities also peg inclusionary zoning rules, density bonuses, and fee waivers to AMI bands, creating a common and predictable framework for public benefits and private projects.

AMI also shapes the amount of help a voucher can buy. Housing authorities use AMI and local rent data to set payment standards; therefore, families are not locked out of neighborhoods with good schools, transit, and jobs. Without AMI-based standards, the value of a subsidy can fall behind market rents, reducing a family’s real choice of where to live.

Beyond housing, AMI guides community investments and fair lending. Federal block grants target “low and moderate income” areas defined with AMI. Banks are reviewed under the Community Reinvestment Act on how well they serve borrowers and neighborhoods under AMI thresholds. State and local programs use AMI to design anti-displacement tools, home repair aids, property tax relief, and first-time buyer support. Some mortgages and down-payment products cap eligibility at 80 or 100 percent of AMI to help first-time buyers and key workers in costly metros.

AMI is also a monitoring tool. Agencies track how many new homes are affordable at each AMI level, whether wages are keeping pace with local rents, and which groups are being served. If most new units are priced for households above 120 percent of AMI, leaders can adjust incentives to reach the 60 to 80 percent AMI range. Thus, the AMI is a practical scoreboard for progress.
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Bottom line. Use a living wage to ask whether a full-time worker can cover the basic needs of a place. Use AMI to set fair eligibility lines, cap rents, prices in housing programs, steer grants and lending, and measure results. Together, they provide a fuller picture of affordability and access; however, AMI is the standard tool for designing and delivering public policy.

​References

1. U.S. Department of Housing and Urban Development (HUD). “FY Income Limits and Methodology.”
2. HUD. “Housing Choice Voucher Program: Guidebook and Payment Standards.”
3. Internal Revenue Service. “Low-Income Housing Tax Credit (IRC Section 42) Program Guidance.”
4. HUD. “HOME Investment Partnerships Program: Income and Rent Limits.”
5. Board of Governors of the Federal Reserve System and Federal Financial Institutions Examination Council. “Community Reinvestment Act: Interagency Questions and Answers.”
6. Federal Housing Finance Agency; Fannie Mae. “HomeReady Mortgage: Income Eligibility Using Area Median Income.”
7. MIT Living Wage Calculator. “Methodology and FAQ.”

(All sources are official program pages or guidance documents that explain AMI definitions, income limits, and program uses.)
This article was written with contributions from AI to organize the information and improve its readability.
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Congratulations to STCU on the ribbon cutting of their newest location (and 4th branch) in the Tri-Cities. This is STCU's 50th branch overall! The beautiful new location is at 2001 N. Columbia Center Blvd. in Richland.

Photos from City of Richland on LinkedIn

​Thank you to everyone who attended the State of Healthcare Membership Luncheon on Wednesday, October 23. We were honored to host our panel of healthcare leaders, who shared valuable insights on access, affordability, innovation, and the future of healthcare in our region.

This three-part series explains how communities, employers, and policymakers can use clear, data-driven tools to discuss affordability and design better programs in Washington. Each article breaks down the core idea in plain language, shows how it is calculated, and provides real-world examples of how it guides decisions on housing, wages, and local investment. Today’s focus is on the Area Median Income (AMI). By the end, you will know what the metric means, why it varies by place and family size, and how it can help leaders match resources to needs so families and businesses can thrive.

The Area Median Income is a simple idea with a significant impact. AMI is the midpoint of household income in a defined area. Half of the households earn more than the median, and half earn less. Federal and local programs use AMI to decide who qualifies for help, how much assistance is fair, and what price or rent limits should be set. In Washington, AMI anchors housing and community development decisions that affect families, builders, lenders, and local governments.

Each year the U.S. The Department of Housing and Urban Development estimates the AMI using federal survey data on local incomes. HUD starts with a four-person “median family income” for each county or metropolitan area. It then adjusts that figure for family size using standard multipliers so that the limits are fair to households of different sizes. HUD also applies technical rules to prevent extreme swings from year to year and to keep areas stable, even when federal metro boundaries change. The result is a set of income limits that programs can confidently use.

The programs translate the AMI into clear bands. Thresholds of 30, 50, 60, 80, 100, and 120 percent of AMI are often observed. These bands have practical significance. Housing Choice Vouchers and public housing use them to determine eligibility. The Low-Income Housing Tax Credit and the HOME program tie tenant incomes and maximum rents to specific AMI levels. Local governments use the same framework for inclusionary zoning, density bonuses, fee waivers, and tax abatements. The use of common AMI bands keeps the rules consistent across projects and agencies.

The AMI also guides how much help a voucher can buy. Housing authorities use AMI and local market data to set payment standards that reflect actual rents. When payment standards match local conditions, families have a better chance of finding homes near good schools, transit, and jobs. The AMI plays a similar role in homeownership efforts. Many down payment programs and special mortgage products cap eligibility at or below a set percentage of AMI to reach first-time buyers and key workers without overspending limited funds.

A major strength of the AMI is that it reflects regional differences within Washington. High-cost areas, such as the central Puget Sound, generally have higher AMI limits than Eastern Washington. This means that an apartment priced for households at 60 percent of AMI in Seattle will have a higher rent ceiling than a 60 percent AMI unit in the Tri-Cities or Spokane. The policy is the same, but the dollar amounts are adjusted to local incomes. This makes the programs more accurate and easier to administer.

Leaders also use AMI as a scorecard. Cities and counties track how many new homes are affordable at each AMI level and compare them to community needs. If most new units serve households above 100 percent of AMI, officials may increase incentives for homes affordable at 60–80 percent. Agencies map neighborhoods using the AMI to target block grants, home repair aid, and anti-displacement tools. Banks are reviewed under the Community Reinvestment Act to determine how well they serve borrowers and areas below the AMI thresholds. Together, these uses focus on measurable outcomes, not just intentions.
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In short, AMI is the common yardstick that turns goals into rules. It sets fair lines for who qualifies, helps price homes and rents at levels families can reach, and keeps programs aligned across jurisdictions. Because the AMI adjusts to family size and local income patterns, it provides Washington communities with a practical way to match resources with need and measure progress over time.

​The City of Pasco is calling on passionate, community-minded residents to help shape the future of our city by serving on one of several open boards and commissions. These volunteer positions offer residents a direct way to contribute their ideas, expertise, and perspectives to the decision-making process that guides Pasco’s growth and character.

“Pasco thrives when our community members share their time and talents,” said Mayor David Milne. “Serving on a board or commission is one of the most meaningful ways residents can make a lasting impact on the city they call home.”

Boards and commissions typically meet once every month. Most positions are open to Pasco residents and have terms ranging from 2026 to 2031. Each board plays a unique role in shaping city policy, from supporting local arts and culture to guiding housing, planning, and public safety.

The City is currently accepting applications for the following boards and commissions:

• Arts & Culture Commission – Positions 4, 5, and 6 (Art Professionals and Artist positions)
• Civil Service Commission – Position 4
• Code Enforcement Board – Position 4
• Housing Authority Board of the City of Pasco & Franklin County – Position 5
• Planning Commission – Positions 7 and 8
  
  

Applications are due Sunday, November 2, 2025. Candidate interviews will take place at Pasco City Hall on Wednesday, November 5, 2025, followed by City Council confirmation on November 17, 2025.

Newly appointed members will be invited to attend a Boards & Commissions Onboarding Session in early December, where they will meet fellow members and City staff.
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To learn more about each board and apply, visit www.pasco-wa.gov/boards or contact the City Clerk’s Office at (509) 545-3402.

Congratulations to Greer on the ribbon cutting and grand opening of their new location in Pasco! You can visit them for your tank and metal fabrication needs at 2901 Rainier Place. Learn more about Greer's new location: ​https://greertank.com/locations-capabilities/pasco/

This three-part series explains how communities, employers, and policymakers can use clear, data-driven tools to discuss affordability and design better programs in Washington. Each article breaks down the core idea in plain language, shows how it is calculated, and provides real-world examples of how it guides decisions on housing, wages, and local investment. Today’s focus is on calculating Washington’s living wage. By the end, you will know what the metric means, why it varies by place and family size, and how it can help leaders match resources to need so families and businesses can thrive.

A living wage is the hourly pay a full-time worker needs to cover their basic needs in the place they live. The MIT Living Wage Calculator builds this number from the ground up using local costs for eight essentials and then adds income and payroll taxes. It reports figures for 12 family types and updates them on an annual basis. In short, it estimates what it really takes to get by without public assistance, not a comfort budget or a savings plan.

Here is how MIT calculates it. First, the model totals the annual costs of food, childcare, health care, housing, transportation, Internet and mobile, civic engagement, and other necessities, all adjusted to recent prices. It then estimates federal and state income and payroll taxes using the NBER TAXSIM model and adds those taxes to the family budget. Next, it is divided by the number of working adults in the household. Finally, it converts that annual amount to an hourly rate by assuming 2,080 work hours per year.

In Washington State, the statewide living wage for a single adult working full-time is $26.36 per hour. Because children incur high costs, a single adult with one child would need $47.96 per hour. In a two-adult household with both adults working and no children, each adult would need $17.96 per hour to meet the same basic standards. These statewide figures average county data; therefore, local numbers will vary. MIT publishes county and metro breakouts, so you can check places like King County or the Tri-Cities specifically.

This helps to compare the living wage with the legal wage floors. Washington’s state minimum wage in 2025 is $16.66 per hour, and some cities require higher wages. Seattle’s city minimum is higher, and several other jurisdictions have set their own rates. These laws set the lowest pay employers may legally offer, while the living wage is a benchmark of what it costs to meet basic needs of living. The gap between the two shows how far a minimum wage paycheck may fall short of a basic needs budget in a given location.

Governments use living wage estimates in various ways. Some counties and cities have incorporated living wage rules into their purchasing and contracting processes. For example, King County requires certain contractors to pay a county-set living wage that is adjusted over time. Living wage data also inform impact statements and policy debates about minimum wage changes, childcare support, housing policy, and transportation planning, as these are the cost drivers in the model. Policymakers and analysts use the calculator to test how proposed policies might narrow the gap between actual pay and basic costs.

Economic development and workforce programs lean on the same numbers. Agencies compare typical local wages by occupation with the living wage to determine which jobs reach self-sufficiency and which do not. This lens can guide training priorities, employer outreach, and incentives that aim to create higher-quality jobs. It can also flag “benefits cliffs” when small pay increases cause families to lose support but still do not reach a living wage.

In practice, the MIT calculator is a clear and transparent way to discuss affordability. It does not include savings, debt repayment, or vacations, and assumes full-time year-round work. Still, it provides a consistent baseline that communities, employers, and lawmakers can use to compare places and track whether paychecks are keeping up with the real cost of living. In many household types, the living wage is above the statewide minimum; therefore, policies that reduce major costs or raise take-home pay will have the biggest impact on family self-sufficiency.
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Bottom line: The living wage is a cost-based target and not a legal rule. MIT’s method adds local basic expenses and layers of taxes and converts the result to an hourly rate. In Washington, this translates to approximately $26 per hour for a single adult statewide, with increased needs for parents and variations by county. Leaders use this benchmark to shape contracts, test policy ideas, and evaluate job quality so that families can meet their basic needs where they live. 

​References

• MIT Living Wage Calculator. “What is a living wage and how is it estimated?” Living Wage Calculator
• MIT Living Wage Calculator. “Living Wage Calculation for Washington.” Living Wage Calculator
• MIT Living Wage Calculator. “Frequently Asked Questions.” Living Wage Calculator
• MIT Living Wage Calculator. “Counties and Metropolitan Statistical Areas in Washington.” Living Wage Calculator
• National Bureau of Economic Research. “TAXSIM.” NBER
• Washington State Department of Labor & Industries. “Minimum wage.” Washington L&I
• Washington State Department of Labor & Industries. “Local minimum wage rates.” Washington L&I
• City of Seattle, Office of Labor Standards. “Minimum Wage Ordinance.” Seattle
• King County, WA. “Living wage ordinance.” King County
• King County, WA. “Rules Implementing Living Wage Ordinance 17909 (CON 7-21-PR).” King County
• Washington State Department of Labor & Industries. “Washington’s minimum wage going up to $16.66 per hour in 2025” (News release 24-24). Washington L&I

This article was written with contributions from AI to organize the information and improve its readability.

Congratulations to the Jubilee Foundation on the ribbon cutting and grand opening for Tierra Vida Phase 3! The housing complex is located at 3209 East A St. in Pasco.

Congratulations to the American Red Cross on the ribbon cutting and grand opening of their newly remodeled headquarters in Kennewick. Swing by their beautiful new office at 7202 W. Deschutes Ave.