What people don't know about household income

I spoke at a Hanley-Wood Conference in Ft.Lauderdale today to a group of Apartment operators. It was a very nice audience.

I asked members of the group to raise their hands when they thought I hit the number at which median income for renters in the US was higher. I started at $60K; nobody raised their hand. But at $50K, a number raised their hands; at $40K, nearly everyone had a raised hand. According to the American Housing Survey from 2007, median income among renters was $28,921. It is possible that number is even lower now. If 30 percent of income paid for rent is "affordable," this means the median renter can afford to pay no more than about $750 per month.