Despite the universally acknowledged importance of housing, cost continues to deprive millions of people the opportunity to live decently. Although the problems associated with rising housing cost may be worldwide, its manifestation among low income public housing residents is more critical. Housing is one of the areas that have received tremendous research attention for the past decades. However, almost all existing research on housing concentrates on non-subsidized households. The problems that public housing residents go through to meet their shelter needs are therefore not readily known by policymakers. This study brings into focus the extent to which the definition of housing affordability affects public housing residents. The study found that actual household incomes of public housing residents are considerably lower than the poverty threshold ceiling. For example, according to the poverty threshold model, the cost to live for a household of four is $20,004. Actual average household income for public housing resident is $8,727. Additionally, comparing the income limits of the poverty threshold and basic family budgets models, the gap is considerably wider; in some cases, almost twice that of the poverty threshold amount. In all cases, the poverty threshold model understates income by approximately 40 percent. This confirms that the poverty threshold model today is unrealistic and insufficient to meet the needs of the poor. Based on the actual household incomes, it would be extremely difficult for households to adequately meet their basic needs.
The study has one major important implication for policymakers. That is, using the poverty threshold model; even if HUD decides to fully fund public housing, there still will be significant gap between HUD’s income limits and what households realistically need. Although most households enjoy acceptable housing facilities which would be considered luxurious in the past, several other households continue to face huge housing cost burdens rendering them into housing-induced poverty; poverty where households cannot afford any of the other basic necessities of life because of shelter costs. Several other households are faced with the unfortunate option of choosing between shelter and food or healthcare and education for their children.