Mixed-Income Housing in the Hud Multifamily Stock

Abstract

This article uses a new national data set to test hypotheses about mixed-income housing, here defined as housing that: includes families with relatively higher incomes; is partly subsidized and partly market-rate; or has a predominance of families not dependent on welfare. We conclude that mixed-income housing usually is found in low-poverty neighborhoods. It is feasible in high-poverty neighborhoods only when there are special housing market conditions, such as immigrants who are willing to use assisted housing in poor neighborhoods as a starting point. In general, mixed-income housing does not require special rent incentives such as ceiling rents. Housing that is diverse in racial and ethical terms is as likely to have a broad range of incomes as is housing in which one group predominates.

JEL Classification: H50, R58