From the cover
Building affordability
BY ADAM DOE
Area median income in Denton vs. Dallas region for family of 4
What’s happening
$120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0
Denton’s median income is about $36,000 less than the Dallas region’s median income as of April 2026. Government agencies use the Dallas region’s area median income to calculate affordability for Denton residents. There are about 200 Denton units priced for 50% and 30% with the Dallas AMI data, according to city data. Dallas fair market region Denton
Denton city leaders adopted new affordability criteria for Denton City Council to approve federally funded tax credits at a Nov. 18 work session, according to previous reporting. The new requirements introduced a rubric that emphasizes units for 50% and 30% annual median income earners to help eligible residents pay for affordable housing. In Denton, the median rent for one-bedroom and two-bedroom multifamily units has risen over time, with two-bedroom rent rising from a median rate of $941 in 2015 to $1,598 in 2024, according to U.S. Census Bureau data. Denton Community Services Director Jesse Kent said federal and state agencies determine the area median income and the affordable rent in Denton, but use the entire Dallas-Fort Worth region to calculate the area median income and what rates are affordable. The region includes higher-income areas, which skews the rate to higher rent pricing than what is affordable for Denton, Kent said. Affordable housing is defined as housing priced for renters to pay less than 30% of their monthly income on rent and uses area median income to determine those rent numbers, Kent’s report states. Residents who spend more than 30% of their income on housing are considered cost burdened,
80% AMI 100% AMI
50% AMI
30% AMI
Income bracket
SOURCES: CITY OF DENTON, US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT/COMMUNITY IMPACT
Housing and Urban Development then scales that income to family size to determine the AMI for households of different sizes, Kent said. As of 2025, Housing and Urban Development data shows the Dallas region’s AMI for a family of four is $117,300 annually, while Denton’s AMI is $80,900, according to city data. When the state and federal agencies set affordable housing prices in Denton, it’s based on what’s affordable for the Dallas area’s median income, not Denton’s. “The [Dallas] area median income is significantly higher than Denton’s median income,” Kent said. “When the state [and] federal governments are defining affordability in our community, they’re using that much higher income to do it. That doesn’t translate well to the city of Denton.”
and residents who spend more than 50% are considered severely cost burdened, according to Kent’s report. Area median income, or AMI, is determined annually by the U.S. Department of Housing and Urban Development and used to measure local housing affordability. Denton officials consider affordable rent to be priced for 50% and well below DFW’s area median income. The U.S. Department of Housing and Urban Development calculates AMI with data from the U.S. Census Bureau, Kent said. Housing and Urban Development officials examine the incomes for families of four and find the median income, where half of the families earn a higher income and the other half earn less than the median.
Why it matters
Data shows that workers in seven of Denton’s 10 most-common jobs don’t earn enough to afford the median rate for a one-bedroom apartment in the city. These jobs include cashiers, customer service representatives, food service workers, retail salespeople, restaurant servers, office clerks and material movers. Kent said when renters are cost burdened or severely cost burdened and spend more than half of their monthly income on housing, it makes it difficult to put money away for other basic necessities. “If half of every paycheck is going to your apartment, it’s hard to save money. It’s hard to pay for health care costs, to take your kids on vacation, to do those things that enrich the lives of you and your family, to seek higher education and increase your income,” Kent said
Cost burden by income level Cost-burdened renters pay more than 30% of their monthly income on housing. Severely cost-burdened renters pay more than half of their income on rent. Severely cost burdened Cost burdened Not cost burdened 25,000
20,000
15,000
10,000
5,000
0
0%-30% AMI
31%-50% AMI
Income bracket 51%-80% AMI
81%-100% AMI
>100% AMI
CONTINUED ON 20
SOURCE: CITY OF DENTON/COMMUNITY IMPACT
19
DENTON EDITION
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