Affordable Housing In Montevideo
Chippewa County, Minnesota

6 Low Income Apartment Communities In Montevideo

Burnsdale 1

1320 Black Oak Ave
Montevideo, MN
Subsidized

Eastgate Townhomes

1011 N 11th St
Montevideo, MN
Subsidized

Brookside Senior Living

804 Benson Rd
Montevideo, MN
Subsidized

Montevideo Hra

501 N 1st St
Montevideo, MN

Burnsdale Apartments II

1324 Black Oak Ave
Montevideo, MN

Tanglewood Limited

913 Tanglewood Dr
Montevideo, MN
HCV Welcome
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Housing Authorities that serve Montevideo

Housing Authority Programs
Housing and Redevelopment Authority of Montevideo Public Housing
Housing And Redevelopment Auth. of Chipp. Co. Section 8 Housing Choice Voucher (HCV)
Housing And Redevelopment Authority of Yellow Section 8 Housing Choice Voucher (HCV)

Guide To Affordable Housing in Montevideo, Minnesota

There are 6 low income housing apartment communities offering 266 affordable apartments for rent in Montevideo, Minnesota. Montevideo features 210 low income apartments with rental assistance where households typically pay no more than 30% of their income towards rent. Additionally, there are 56 other low income apartments that don't provide direct rental assistance but remain affordable to low income households in Montevideo.

Sourced from federal housing data and AffordableHousingOnline.com research.

Montevideo, MN Affordable Housing Snapshot

Total Affordable Apartment Properties 6
Total Low Income Apartments 266
Total Housing Units with Rental Assistance 210
Percentage of Housing Units Occupied By Renters 37.61%
Average Renter Household Size 2.23
Average Household Size 2.18
Median Household Income $43,906 ±$3,232
Median Rent $544 ±$195
Percentage Of Renters Overburdened 31.58% ± 13.65pp
Total Population 5,240

Population and Household Demographics

Montevideo is a City in Chippewa County, Minnesota with a population of 5,240. There are 2,324 households in the city with an average household size of 2.18 persons. 37.61% of households in Montevideo are renters.

Income and Rent Overburden in Montevideo

The median gross income for households in Montevideo is $43,906 a year, or $3,659 a month. The median rent for the city is $544 a month.

Households who pay more than thirty percent of their gross income are considered to be Rent Overburdened. In Montevideo, a household making less than $1,813 a month would be considered overburdened when renting an apartment at or above the median rent. 31.58% of households who rent are overburdened in Montevideo.1

Area Median Income In Montevideo

Affordable housing program eligibility is always determined by one's income. Each household's income is compared to the incomes of all other households in the area. This is accomplished through a statistic established by the government called the Area Median Income, most often referred to as AMI. The AMI is calculated and published each year by HUD.

HUD often uses an area larger than a city to determine the AMI because HUD anticipates those searching for housing will look beyond individual cities during their housing search. For Montevideo, the AMI is calculated from all households within Chippewa County.

In Montevideo, HUD calculates the Area Median Income for a family of four as $73,500

Most affordable housing programs determine eligibility based on the percent of AMI a given household's income is. Among the programs that determine eligibility based on the AMI are Section 8, HOME, LIHTC, Section 515, 202 and 811.

Rental Assistance in Montevideo

Rental assistance is a type of housing subsidy that pays for a portion of a renter’s monthly housing costs, including rent and tenant paid utilities. This housing assistance can come in the form of Section 8 Housing Choice Vouchers, project-based Section 8 contracts, public housing, USDA Rental Assistance (in Section 515 properties) as well as HUD Section 202 and 811 properties for elderly and disabled households.

Income Qualifications for Montevideo HUD Rental Assistance in Montevideo

Income 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
30% of Median $15,450 $17,650 $21,330 $25,750 $30,170 $34,590 $39,010 $43,430
50% of Median $25,750 $29,400 $33,100 $36,750 $39,700 $42,650 $45,600 $48,550
80% of Median $41,200 $47,050 $52,950 $58,800 $63,550 $68,250 $72,950 $77,650
Low Income Housing Tax Credits in Montevideo

The Low-Income Housing Tax Credit (LIHTC) program aims to create affordable rental housing for low and very low income families.

From 1998 to 1998, 1 low income apartment communities containing 23 rental apartments have been constructed and made affordable to low income persons in Montevideo by the Low Income Housing Tax Credit Program.

If your income is less than 60% of the Area Median Income (AMI), you should not expect to pay more than the rent value for a unit in the table below. However, Affordable apartment communities that receive funding through the Low Income Housing Tax Credit program may have rental units that are not subject to income and rent limits.

Rent limits for the LIHTC Program are determined so that a household making the maximum income for the expected household size of the unit would only pay 30% of their income for rent.

Income Qualifications for Low Income Housing Tax Credit Apartments in Montevideo

Income 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
50% of Median $25,750 $29,400 $33,100 $36,750 $39,700 $42,650 $45,600 $48,550
60% of Median $30,900 $35,280 $39,720 $44,100 $47,640 $51,180 $54,720 $58,260

For example, the expected household size for a two bedroom apartment is 3 people. Using the table above, the maximum income for a 3 person household at 60% of the AMI in Montevideo is $39,720 a year, or $3,310 a month. To determine the maximum rent in the table below we multiply the monthly maximum income, $3,310 by 30% to get a maximum rent of $993 a month.

Rent for units in the LIHTC Program include a utility allowance which is determined by the average monthly cost of utilities paid directly by residents. This allowance has not been subtracted from the rents in the table below. These utility allowances are set on a property by property basis.

% of AMI Studio 1 Bed 2 Bed 3 Bed 4 Bed 5 Bed
50% $644 $689 $828 $956 $1,066 $1,177
60% $773 $827 $993 $1,147 $1,280 $1,412
Fair Market Rents in Montevideo

Fair Market Rents, often abbreviated as FMR, can be used to better understand the average housing costs of an area. Notably, Fair Market Rents are used to establish the payment standards for the Housing Choice Voucher Program, maximum rents in HOME financed rental projects and initial rents for Section 8 project based assistance.

2020 Fair Market Rents
Studio One BR Two BR Three BR Four BR
$487 $574 $714 $1,030 $1,102