Index: Community Development / Subcategory: Housing

Home Ownership/ Affordable Housing

Date updated: 06/19/2013

Median Family Income (MFI) is an annual income figure. The median divides income distribution into two equal parts: one-half falling below the median income and one-half above the median. MFI is based on the distribution of the total number of families including those with no income. In 2012, the MFI for the Fort Collins-Loveland Metropolitan Service Area (MSA) was $77,700.

Median sale price is determined by taking the prices of all homes sold during a given year and splitting the range into two equal parts, with one-half falling below the median sale price and the other above the median sale price. Median sale price includes the prices of all homes sold in a particular year, including new, existing, single-family, and attached homes (such as condominiums).

The Housing Opportunity Index (HOI) is a measure of the percentage of homes sold that a family earning the median area income can afford to buy.

Affordable housing is defined as housing with monthly payments that cost no more than 30% of a household's gross monthly income for rent and utilities or mortgage PITI (principal, interest, taxes and insurance).

What this chart shows: Median Family Income & Median Home Sale Price in the Fort Collins MSA, 2006 - 2012

Data Source: National Association of Home Builders

See data table

What the above data tell us:

From 2006 to 2012, the price to income ratio in Larimer County varied between a low of 2.8 in 2009 and 2011 and a high of 3.3 in 2006. A lower price to income ratio means housing is more affordable.

For a home to be considered affordable in 2012, mortgage PITI (principal, interest, taxes and insurance) on a $232,000 home would have to be $1,178 or less. Assuming a 10% down payment and a 30-year fixed mortgage of $208,800, monthly principal and interest payments would run approximately $953, assuming an interest rate of 3.63%, a monthly average property tax payment of $100 and a monthly insurance payment of $125, for a total of approximately $1,178.

What this chart shows: Housing Opportunity Index (HOI), Fourth Quarter, 2012

Data Source: National Association of Home Builders

See data table

What the above data tell us:

The Housing Opportunity Index (HOI) measures the proportion of houses sold that are affordable to families earning the annual Median Family Income. In the fourth quarter of 2012, Pueblo had the highest HOI in the state (88.9%). The Fort Collins/Loveland MSA had the fourth highest HOI in the state (85.5%). This means that 14.5% of homes sold within the Fort Collins-Loveland MSA in 2012 were not affordable to families with income equal to the Median Family Income.

What this chart shows: Percentage of Homeowners With and Without Mortgages, 2007-2011 American Community Survey 5-Year Averages

Data Source: United States Census (Table B25091)

See data table

What the above data tell us:

On average, between 2007 and 2011 an estimated 75.5% of Larimer County homeowners had mortgages compared to 67.6% in the United States and 75.9% in Colorado. In 2000, slightly more (79.7%) of all Larimer County homeowners carried a mortgage.

Wellington had the highest percentage of homeowners with mortgages at 94.1% and Red Feather Lakes had the lowest percentage at 27.3%. This is very likely due to the number of young families living in Wellington (median age 30.5) and the number of retired individuals living in Red Feather Lakes (median age 55.0).

What this chart shows: Homeowners Paying 30% or More of Income for Housing, 2007-2011 American Community Survey 5-Year Averages

 

Data Source: United States Census (Table B25091)

See data table

What the above data tell us:

In 2007-2011, an estimated 30.3% of Larimer County homeowners were paying 30% or more of their household income toward a housing, 22.1% of whom were paying 35% or more. In comparison, only 22.1% of Larimer County homeowners in 2000 paid 30% or more of their income toward their housing.

There were more Larimer County homeowners paying between 30.0% and 34.9% of their household income on mortgages (8.1%) than in the United States (7.1%) or in Colorado (7.7%). The percentage of homeowners in the United States (23.1%) and Colorado (22.6%) paying 35% or more of income on housing was higher than in the Larimer County (22.1%).

When comparing Larimer Communities by the percentage of income paid for housing, Johnstown is the only community with fewer residents paying 50% or more of their income on housing than those paying between 30% and 34.9% of their income. (See data table for details.)

What this chart shows: Homeowners in Larimer County Paying 30% or More of Income for Housing by Income Level, 2007-2011 American Community Survey 5-Year Averages

 

Data Source: United States Census (Table S2506)

See data table

What the above data tell us:

According to the 2007-2011 American Community Survey 5-Year Estimates, a higher percentage of homeowners earning less than $35,000 per year pay more than 30% of their income to housing than any other income level.

During this same time period, 54.9% of Larimer County homeowners paid $1,500 or more in real estate taxes. More homeowners in Berthoud (62.2%), Fort Collins (58.7%), and Timnath (64.3%) paid $1,500 or more in real estate taxes than homeowners in Estes Park (49.4%), Johnstown (53.3%), Laporte (38.1%), Loveland (35.0%) or Wellington (53.5%).

Additional Information:

Related Information on COMPASS -

Other Resources -

Data Tables:

Median Family Income and Median Home Sale Price in Fort Collins

Year

Median Family Income

Median Home Sale Price

2006

$68,600

$225,000

2007

$68,200

$220,000

2008

$75,000

$217,000

2009

$75,200

$208,000

2010

$74,900

$215,000

2011

$76,700

$217,000

2012

$77,700

$232,000

See chart

Housing Opportunity Index - Fourth Quarter 2012

Metropolitan Statistical Area (MSA)

HOI

Boulder-Longmont PMSA

70.7%

Colorado Springs MSA

82.1%

Denver PMSA

79.0%

Fort Collins-Loveland MSA

85.5%

Greeley PMSA

86.0%

Pueblo MSA

88.9%

See chart

Homeowners With and Without Mortgages (2007-2011 5-Year Averages)

 

# With Mortgage

% With Mortgage

# Without Mortgage

% Without Mortgage

United States

51,321,962

67.6%

24,574,797

32.4%

Colorado

982,988

75.9%

312,918

24.1%

Larimer County

60,127

75.5%

19,494

24.5%

Berthoud

1,349

80.2%

332

19.8%

Estes Park

1,198

63.3%

694

36.7%

Fort Collins

25,024

78.5%

6,851

21.5%

Johnstown

2,221

83.7%

434

16.3%

Laporte

585

75.0%

195

25.0%

Loveland

13,845

75.8%

4,420

24.2%

Red Feather Lakes

12

27.3%

32

72.7%

Timnath

143

88.8%

18

11.3%

Wellington

1,605

94.1%

101

5.9%

See chart

Homeowners Paying 30% or More of Household Income
for Housing (2007-2011 5-Year Averages)

# Homeowners

30% - 34.9%

35% and More

United States

23,103,371 7.1% 23.1%

Colorado

401,612 7.7% 22.6%

Larimer County

24,460 8.1% 22.1%

Berthoud

547 8.1% 27.7%

Estes Park

672 5.2% 23.0%

Ft. Collins

9,194 8.9% 20.2%

Johnstown

671 12.2% 18.2%

Laporte

234 9.9% 21.5%

Loveland

5,413 7.1% 21.4%

Red Feather Lakes

14 0.0% 0.0%

Timnath

36 0.0% 27.3%

Wellington

711 13.5% 27.4%

See chart

Homeowners (with Mortgages) Paying 30% or More of Household Income for Mortgage by Income Level (2007-2011 5-Year Averages)

Income Level

30% or More of Income

<$34,999

12.4%

$35,000 to $49,999

7.8%

$50,000 to $74,999

10.4%

>$75,000

6.1%

See chart