# Alabama

### Summary

Alabama state is facing challenges to housing affordability. For every 100 low-income renter households, there are 80 units available that are affordable to them. The median household income in the state is $32,274 whereas the median rent in the state $630. Currently, the state is short over 29,830 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

30.6% share of renter households  
40.7% share of low-income households  
41.2% share of rent-burdened households

### Renter population data

**Renters vs homeowners**  
**Share of income spent on rent**  
**Households**  
**% share**  
**Renter households**  
582,412  
30.6%  
**Homeowner households**  
1,320,571  
69.4%  
**Total households**  
1,902,983  
100.0%  
**Low-income renter households**

**Renter households by income group**  
**Households**  
**% share**  
**Extremely low-income**  
≤30% AMI  
81,205  
13.9%  
**Very low-income**  
31-50% AMI  
69,868  
12.0%  
**Low-income**  
51-80% AMI  
86,145  
14.8%  
**All low-income households**  
<80% AMI  
237,218  
40.7%

**Rent-burdened households**  
**Share of income spent on rent**  
**Households**  
**% share**  
**Moderately rent-burdened**  
117,562  
20.2%  
**30.0–34.9%**  
44,097  
7.6%  
**35.0–39.9%**  
30,377  
5.2%  
**40.0-49.9%**  
43,088  
7.4%  
**Severely rent-burdened**  
122,559  
21.0%  
**≥50.0%**  
122,559  
21.0%  
**All rent-burdened households**  
240,121  
41.2%

### Affordable housing shortage

**Rent vs median household income**  
**Median household income**  
**Amount ($)**  
**in 2010**  
23,358  
**in 2021**  
32,274  
**Increase (2010–2021)**  
38.2%

**Median rent**  
**Median rent**  
**Amount ($)**  
**in 2010**  
452  
**in 2021**  
630  
**Increase (2010–2021)**  
39.4%

**Affordable housing stock**  
**Supply, demand & shortage**  
**Units**  
**Supply (current stock)**  
121,243  
**Demand (total units needed)**  
151,073  
**Shortage**  
29,830  
**total shortage**  
80.3%  
**supply/demand ratio**

**Availability of affordable rental units per 100 household**  
**Moderate, middle & upper-income (>80% AMI)**  
**Low-income (51-80% AMI)**  
**Very low-income (31-50% AMI)**  
**Extremely low-income (≤30% AMI)**

#### Alabama Housing Finance Authority

Alabama Housing Finance Authority  
7460 Halcyon Pointe Drive, Suite 200  
Montgomery, AL 36117-8105

**LIST OF loan programs**  
- [Housing Credits & HOME](https://www.ahfa.com/multifamily/multifamily-programs/home-housing-credits)  
- [CHDOs](https://www.ahfa.com/multifamily/multifamily-programs/home-housing-credits/chdos)  
- [Housing Trust Fund](https://www.ahfa.com/multifamily/multifamily-programs/housing-trust-fund)  
- [Multifamily Bonds](https://www.ahfa.com/multifamily/multifamily-programs/multifamily-bonds)

### QAP document (Qualified Allocation Plan)

**QAP**  
Alabama  
The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.

[Download document](/content/housingcount/us-states/alabama#/index.html)

### Housing news

##### How Fed Rate Cuts Impact the Housing Market

The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.

**Key Takeaways:**
- **Lower Mortgage Rates**: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.  
- **Home Sales**: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- **Ongoing Supply Issues:** Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.

While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.