What are the proposed rents and how were they calculated?

The proposed Montgomery project is a mix of income-qualified and market-rate units. Because the City used federal CDBG funds to buy the property from LCC, at least 51% of the units must be offered at Housing and Urban Development (HUD) income and rent levels for 80% Area Median Income (AMI) households. HUD identifies income levels for different household sizes and the proposed rents are based on these income levels. The rents for the income-qualified units below are based on 80% AMI incomes for 1- and 2-person households.  For example, the 2020 income limit for an 80% AMI 1-person household is $39,200. For that person to not be cost-burdened, they must pay no more than 1/3 of their income on rent and utilities, which is $980 per month. The income-qualified rents below reflect the 2020 federal HUD income limits, minus an allowance for utility costs.

The proposal shows estimated rents for the market-rate units. These rents will ultimately be what renters in the market are willing to pay. The rents presented in the proposal are consistent with current rents for comparable properties in and near the downtown, also shown in the table below.

Proposed Units and Rents

Unit Type

Income-qualified units

Market-rate units

Current Rents In and Near Downtown*

# of Units

Monthly Rent

# of units

Monthly rent







1 Bedroom






2 Bedroom






*Source: Apartments.com, April 2021

Show All Answers

1. What’s happening at 1059 Willamette Street?
2. What is the proposed project?
3. What is Affordable Housing?
4. Is this project considered Affordable Housing?
5. What is the City of Eugene contributing to this project?
6. Why isn’t this project for households with incomes less than 60% Area Median Income?
7. What are the tools available to support lower-income Affordable Housing?
8. Is the City doing anything else to create Affordable Housing?
9. What are the proposed rents and how were they calculated?
10. How do we know only households at or below 80% of Area Median Income will be able to rent the income-qualified units?
11. How long will these 80% AMI rents be maintained?
12. Who is the team that proposed the Montgomery?
13. Why is Council only considering one proposal for this site?
14. Why is the City pursuing a mixed-income housing project?
15. Is it true that the City is giving $10 million to this development team?