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INC WSIO NARY ZONING ANALYSIS
10
Affordable Rents (Utilities Included
Unit 40% 50% 60% 65% 70% 80% 100% 110% 120% 140% Market
Type AMI AMI AMI AMI AMI AMI AMI AMI AMI AMI Rate
Efficiency | $711 $889 | $1,067 | $1,156 | $1,245 | $1,422 | $1,778 | $1,956 | $2,134 | $2,489 | $1,779
1BR $829 $1,036 | $1,243 | $1,347 | $1,450 | $1,658 | $2,072 | $2,279 | $2,486 | $2,901 | $1,860
2BR $998 | $1,248 | $1,498 | $1,622 | $1,747 | $1,997 | $2,496 | $2,746 | $2,995 | $3,494 | $2,316
3BR $1,154 | $1,443 | $1,732 | $1,876 | $2,020 | $2,309 | $2,886 | $3,175 | $3,463 | $4,040 | $2,688
Source: HUD, and RKG Associates Inc., 2021
Sales Price Thresholds -The sales price thresholds were established by using New Hampshire
Workforce Housing 2020 Workforce Housing Purchase and Rent Limits to determine affordable sales
prices. As seen in Table 4, home purchase income-controlled price thresholds are substantially lower
than the market rate sales price levels identified by RKG. The market rate data was compiled by
parsing the city’s property assessment and sales database over the last ten-years to determine average
sales values.
Table 4. Maximum Affordable Rents (Utilities
Unit | 40% 50% 60% 65% 70% 80% 100% 110% 120% 140% Market
Type | AMI AMI AMI AMI AMI AMI AMI AMI AMI AMI Rate
1BR $94,560 | $118,200 | $141,840 | $153,660 | $165,480 | $189,180 | $236,400 | $236,400 | $262,800 | $330,960 | $300,000
2BR $126,080 | $157,600 | $189,120 | $204,880 | $220,640 | $252,240 | $315,200 | $315,200 | $350,400 | $441,280 | $350,000
3BR $157,600 | $197,000 | $236,400 | $256,100 | $275,800 | $315,300 | $394,000 | $394,000 | $438,000 | $551,600 | $550,000
Source: HUD, and RKG Associates Inc., 2021
Inclusionary Thresholds — The model built by RKG allows the user to select three different AMI
percentages to test the impact of inclusionary zoning. These percentages can be set for both rental and
ownership projects, the tables below illustrate the default settings of the model. To measure the impact
of inclusionary zoning, RKG scaled the inclusionary zoning percentage with the size of a development
— the larger the project the higher the inclusionary percentage. For example, projects greater than 100
units would be required to have 20% of the units designated as affordable, which would be spread
across three tiers of varying income limits. Additionally, the model allows the user to identify the AMI
thresholds to apply the inclusionary units. For the purposes of this modeling exercise, RKG used 80%
of AMI as the baseline for all tiers in the financial feasibility model. However, the model allows for
the city to test any variation of income thresholds ranging from 50% AMI to 120% AMI.
Table 5. Modeled Inclusionary Zoning Percentages for Both Rental and Ownership Developments
Tier Tier 2 | Tier 3
Rental Units 50% - 120% AMI 50% - 120% AMI 504% - 120% AMI Total
1-25 new units 5% 5% 0% 10%
26-50 new units 10% 5% 0% 154
51+ new units 5% 10% 5% 20%
Source: City of Nashua and RKG Associates Inc., 2021
