Over 200 homes were added in Madison in October, according to the City of Madison. This is part of the Madison Common Council’s Housing Forward initiative that was announced in June. District 8 Alder MGR Govindarajan said these additions are described as Area Median Income housing. 

“If you’re making $100,000, and that’s the median income in Madison, then hypothetically these homes are going to be priced as if you make only $60,000,” MGR said. 

AMI works by adjusting the price of the housing to the income of the average person living in the area, MGR said. Rent is calculated as a quarter of annual salary, then changed based on the average median income, according to MGR.

This proportional housing plan allows it to work all over the country with different area median incomes, MGR said.

Student housing was not accounted for in the affordable housing count, according to MGR. These median income housing opportunities also do not apply to students, MGR said. Students do not qualify for AMI housing, as there are other affordable housing opportunities for current students, according to MGR.

The reduced cost offering allows students with lower incomes to rent out apartments in different complexes for a discounted rate, according to MGR. The complexes who agreed to these terms with the city will offer 10% of their apartments for these reduced rates.

Ōliv Madison was the first complex to offer this, according to MGR. Hub Madison complexes two and three which are being currently constructed are the next ones offered to students, MGR said.

Throughout the current citywide housing crisis, rents have begun to stabilize, MGR said. 

MGR said that Madison rent prices should be decreasing within the next few years, with more entries into the reduced rent program. 

“The City of Madison is looking to expand this program, and we’re aiming to have about seven to eight of these buildings with the student affordability bonus,” MGR said. 

There will be multiple construction projects around State Street including the Hub projects, offering reduced cost options — along with two more reduced cost options being developed on Regent street, according to MGR.

The City of Madison and off campus housing buildings are making large efforts to include the entire population of students in their customer base, not just those who can afford a newly built apartment, according to MGR.

“We’re seeing some progress with the housing market as we’re building and creating more affordable housing, especially for students,” MGR said.