Affordable Housing and Area Median Income Fairness Act of 2026

Key Points

• The bill authorizes $15 billion per year for 10 years across three major federal housing programs: the HOME Investment Partnerships Program, Community Development Block Grants, and the Housing Trust Fund. Each program would receive $5 billion annually from fiscal years 2026 through 2035, totaling $150 billion over the decade.
• All new funding is restricted to areas where the government has recognized abnormally high housing costs compared to local incomes. This means the money would flow to expensive cities and metro areas rather than being spread evenly across the country.
• The bill requires HUD to study whether the way area median income is currently calculated is making housing less affordable in cities. Right now, wealthier suburbs can inflate the income figures used to set rent limits in nearby urban areas, potentially pushing "affordable" rents above what lower-income city residents can actually pay.
• HUD would explore calculating area median income at the ZIP code level and other more localized methods, which could result in lower rent limits in poorer neighborhoods and better target housing aid to the people who need it most.
• The bill specifically calls out the effect of wealthy Westchester and Rockland Counties on New York City's area median income, ordering a study of how these suburbs inflate rent prices and income limits for affordable housing inside the city.