Affordable Housing 101
At its core, affordable housing means a household can find a safe, stable place to live without sacrificing other essentials like food, health care, or transportation. A commonly accepted benchmark is that housing is affordable when it costs no more than 30% of a household’s gross income. When families spend more than that, they are considered cost-burdened, and often face tough choices to make ends meet.
Why Maine Needs Affordable Housing
Maine needs to build 80,000 new homes by 2030 to fill its backlog of 40,000 homes and its future workforce needs according to a State and Maine Housing study. According to the U.S. Census and HUD, Maine workers need to be earning more than $27 an hour (or $54,853/year) to afford a 2-bedroom apartment with the average Maine rent of $1,372/month; yet the state’s 2025 minimum wage is $14.65.
Average Maine home prices are over $400,000 and are even higher in southern parts of the state. Residents require an income of $100,000 to $130,000 to afford a home. Maine has a median income of $75,740.
In Maine and across the country, more and more households — renters and homeowners alike — are struggling to find homes they can afford. This isn’t just a housing issue. It’s an economic development issue, a child wellbeing issue, a public health issue, and a fundamental matter of safety and dignity.
Learn more from MAHC member, Enterprise Community Partners’ Housing 101 guide
Why It Matters
Affordable housing supports thriving communities. It helps seniors age in place, workers live near their jobs, and families access strong schools and health care. When people have a stable home, everything else becomes possible.
In Maine, housing is the solution to many challenges we face – an aging workforce, rising housing costs, health care access, and more. Addressing it means building more homes, yes — but also changing policies at the state, local and federal levels.
Types of Affordable Housing
Affordable housing takes many forms, including:
- Subsidized rental housing (like Section 8 or Rural Development housing)
- Mixed-income developments
- Public housing
- Affordable homeownership programs
- Workforce housing for moderate-income residents
These housing types are made possible through public-private partnerships, nonprofit developers, housing authorities, and mission-driven coalitions like MAHC.
Learn more from MAHC member, Enterprise Community Partners’ Housing 101 guide
Who Needs Affordable Housing?
The short answer: almost everyone — from retail workers and caregivers, to teachers, healthcare workers, EMTs, pharmacy workers, restaurant staff, and beyond. In Maine:
- Over 1 in 2 renter households are cost-burdened.
- 1/3 of people in affordable housing in Maine are seniors; 1/3 are workers; and 1/3 have disabilities.
- Rural towns and cities in Maine alike face housing shortages.
- The state needs 80,000 new homes to meet current and future demand.
Affordable housing is essential to our economy and vital neighborhoods.
What Can Be Done?
Solving Maine’s housing crisis will take bold action and collaboration. That includes:
- Reforming zoning and land use policies
- Increasing funding for affordable housing production
- Supporting tenant protections and housing stability
- Building political will and public understanding
- Engaging local residents to voice support for new homes of all kinds in their towns.
At MAHC, we advocate for smart housing policy, provide resources to housing practitioners, and amplify the stories that humanize the crisis — and the solutions.
Want to Learn More?
Check out the Enterprise Housing 101 Toolkit for a deeper dive into key terms, concepts, agencies involved, and strategies. Then explore the rest of our Knowledge section to see how these ideas come to life in Maine. Or contact MAHC at info@mainehousingcoalition.org.