HomeMy WebLinkAboutAlb Cty Cost of Liv Study 11/99Albemarle County Cost of
Living Study
November 1999
1999 Albemarle County Cost of Living Projections
EXECUTIVE SUMMARY
With state welfare reform legislation now in effect for two years and associated benefit
reductions possible for some recipients, the County wanted to revisit the local cost of living
estimates compiled from 1995. As before, the revised study is designed to illustrate the monthly
expenses for various family types to live in Albemarle County taking into consideration basic
living needs. The 1999 Cost of Living results are similar to the prior study, with housing and
childcare costs accounting for between 40%-50% of the hypothetical family budget. Therefore, it
would require a single mother with one pre-school child to earn at least $11.50 an hour in order
to obtain a minimum level of living by community standards in Albemarle County, Virginia.
Typical entry-level jobs for persons without a college education are usually not sufficient to pay
for all the necessary family living expenses, and often some important expenditures are forgone
to make ends meet. By comparison, a family of three with two adults working full-time can
survive on little under $7.25 an hour each, making the cost of living in Albemarle significantly
more attainable.
These are some of the updated findings in a study of the cost of living in Albemarle County.
Detailed estimates were compiled on the minimum incomes needed to live in Albemarle at a
level consistent with community standards. By using a community standard of living, staff
included items such as health insurance and child care which are frequently excluded from the
budgets of persons with low incomes. The Albemarle cost of living does not, however, provide
for expenses common to middle-class households: vacation, cable television, entertainment
beyond $5.00 per week, savings for personal expenditures such as a house, or retirement funds.
Also, the cost of living does not include any extraordinary medical costs.
The following are important conclusions from this analysis:
1)
The income necessary for a single parent to maintain a household for more than one child
in Albemarle County is virtually unattainable for someone without an advanced
professional degree, or some form of subsidized housing, medical care and/or child care.
2)
Child care for pre-school children is the second largest expenditure for most low-income
families and critically impacts their ability to meet other household expenses.
3)
Most low-income Albemarle families with young children do not have the option of one-
parent remaining home to raise the children
4)
Using % of median income as a means test for state and federal assistance programs,
leaves many families well below the income level required to maintain a household.
L THF, ALBEMARLE COST OF LIVING
Table 1 shows the Albemarle cost of living for a single parent with one child, This calculation
reveals that the cost of living for this household is 65% of the Virginia median income. Incomes
required at this level are nearly double the authorized minimum wage.
TABLE 1
COST OF LIVING: SINGLE PARENT, ONE CHILD
1995 COST DATA ESTIMATES PER MONTH
ITEM OF EXPENDITURE
HOUSING
CI4-11D CARE
MEDICAL INSURANCE
MEDICAL EXPENSES
DENTAL
FOOD
TELEPHONE
TRANSPORTATION
MISC.
TOTAL (AVERAGE)
APPROXIMATE TAXES
GROSS SALARY REQUIRED
HOURLY WAGE REQUIRED
ANNUAL INCOME NEEDED
VIRGINIA MEDIAN INCOME
COST/MONTH
$575 (Average ofl-2 bedroom)
$347
$127
$40
$22
$230
$25
$245
$176
$1787
$216
$2003
$11.56
$24,036
$36,885.
A. HOUSING. The most expensive item in Albemarle County is housing, which accounts
for the largest share of the hypothetical family budgets. Housing costs are shown as a range from
0 bedroom to 4 bedroom apartments in the Charlottesville MSA. These Fair Market Rent figures
were collected from the U.S. Department of HUD for February 1999 (Attachment A).
B. CHILD CARE. Child care for preschool children constitutes the second largest
area of expenditure, contributing significantly to the difference in economic well-being between
families with and without children. As provided by the Albemarle County Department of Social
Services, the weekly costs for child care are an averaged figure of the most costly
unregulated/informal child care ($75) and the lowest licensed institutional child care ($85).
C. gIEALTH COSTS. Monthly health insurance for major medical coverage (non-group)
for adults and minors was averaged to be $73 & $54, respectively. Health insurance varied
depending on the sex and age of the adult as well as the amount of the deductible ($300). Health
care costs were estimated using quotes provided by Trigon Blue Cross Blue Shield Individual
Insurance and do not include annual physical and preventative maintenance programs.
Prescription medicine and doctor co-payments were updated from HMO estimates and Medicaid
Expenditures for VA.
D. FOOD. Food expenditures were obtained from the USDA Center for Nutrition
Policy and Promotion family food cost chart (5/99). USDA calculates four levels of food
expenditure: thrifty, low-cost, moderate-cost, and liberal food plans. The "low cost plan" was
used for Albemarle food cost requirements (Attachment B).
E. OTHER LIVING EXPENSES
Utility cost. Generally gas, water/sewer and electricity are included in the Fair Market
rent allocations. Therefore, no utility costs were included in the cost estimations.
Telephone Costs were determined as Sprint Centel's lowest monthly rate and do not
include long distance or any special features.
Transportation expenses were calculated as the monthly cost of purchasing and
operating a second-hand vehicle, $245. The expense was based on revised computations
provided by the Complete Car Cost Guide.
Miscellaneous costs included clothing, housekeeping supplies, house furnishings, and
personal needs were updated computations from Ernst & Whinney for the Commonwealth of
Virginia Department of Social Services. The Personal Need category includes minimal mental
health needs (recreation) as well as physical needs.
Federal and State taxes. Taxes for each family type (accounting for appropriate deductions)
were calculated by the County Finance Department using the cost of living estimates as income.
It should be noted that low income households pay a disproportionate amount of sales tax and
other consumer taxes compared to higher income households.
F. Expenses Omitted. The minimum budgets do not include a number of common items
for households in the County. Among these are the following: 1) unusual medical, such as costs
for chronic diseases or injuries; (2) savings for a new car, home purchase, or college education;
(3) vacations; (4) recreation (including eating out).
OTHER HOUSEHOLD CONFIGURATIONS
In addition to a single parent with one child, the cost of living was calculated for eight other
household configurations. The incomes necessary to support those types are listed below. When
two adults are lis~ed in a household it is assumed that both work full-time.
TABLE 2
COST OF LIVING: VARIOUS HOUSE HOUSEHOLD CONFIGURATIONS
BASED ON 1995 COST DATA ESTIMATES
HOURLY WAGE REQUIRED
HOUSEHOLD* COST** TO MEET COST OF LIVING
1 ADULT
2 ADULTS
1 ADULT, 1 CI-III,D
2 ADULTS, 1 CHILD
1 ADULT, 2 CHI7 DREN
2 ADULTS, 2 CHILDREN
1 ADULT, 3 CHII,DREN
2 ADULT, 3 CHI[,DREN
1 ADULT, 4 CHII,DREN
30,121
15,072 7.25
21,084 5.07
24,036 11.56
7.24
31,765 15.27
40,873 9.83
42361 20.37
48,061 11.56
45,757 22.00
* assumes child care expenses for all children, except last household type where three are
factored
** see appendix for estimated costs per household
H
ANALYSIS OF COST OF LIVING DATA
A. In every one of the above cases, the annual income to meet the Albemarle cost of living
is below the Virginia median income.
B. The income necessary for a single parent to maintain a household for more than one child
is extremely difficult to achieve for someone without an advanced professional degree. As
noted, child care costs drive these budgets up and can, for two preschool age children, average
$75 per week for informal day care and $85 per week for licensed/formal day care. Since many
of Albemarle families use unregulated day care, we averaged both unregulated and licensed day
care facility figures into our estimates. Since licensed day care costs are clearly beyond the
reach of most single parents, there is a significant risk that without assistance, children will be
exposed to substandard child care.
C. Maintaining a family with two working parents makes living in Albemarle much more
possible. Two adults with two children need to earn about $10.00 an hour each, working full-
time, to meet the cost of living. A single adult with two children would need to obtain an
income of $15.27 an hour to provide the same standard of living. The option of one parent
staying home to raise children is effectively precluded for a low income household.
D. The most difficult time to provide adequately for children is when they are pre-school
age, and require full-time quality day care. The high cost for licensed day care makes it difficult
if not impossible for low income families to obtain the services they need. A single parent with
two children earning a realistic "living wage" of $8.00 an hour is only earning 52% of the cost of
living.
III ALBEMARLE COST OF LIVING
COMPARED TO OTItER INCOME MEASURES
A. MEDIAN INCOME. At the Albemarle County cost of living of $24,036 for a single
parent and child, the family would be earning 65% of the Virginia median income. This is
illustrated in Table 3 for each household configuration.
The 1999 Virginia median family incomes were updated estimates from HUD income limits for
a family of four and do not differentiate for family configuration.
TABLE 3
Cost of Living COMPARED TO MEDIAN INCOMES:
ALBEMARLE & VIRGINIA
HOUSEHOLD
COST OF VA MEDIAN
LIVING INCOME
COST OF LIVING (COL)
AS % OF MED. INCOME
1 ADULT
2 ADULTS
1 ADULT, 1 CHILD
2 ADULTS, 1 CHILD30,121
1 ADULT, 2 CHILDREN
2 ADULTS, 2 CI-IILDP~N
1 ADULT, 3 CHII.DREN
2 ADULT, 3 CHILDREN
1 ADULT, 4 CHILDREN
15,072 28,209 53%
21,084 36,885 57%
24,036 36,885 65%
45,561 66%
31,765 45,561 70%
40,873 54,200 75%
42,361 54,200 78%
48,061 62,929 76%
45,757 62,929 73%
The above analysis reveals problems in using a percent of median income as the means test for
access to public assistance. The first is that the cost of living is highly dependent on the size and
configuration of the household. It is not related to a percentage of median income; for example,
a single adult needs a minimum of 53% of the VA area median income compared to a household
of one adult and two children, which needs 70% of the Virginia median income. Thus, there is a
fundamental flaw in using percentage of median income as a needs or means test for public
assistance. A single person without extraordinary medical expenses would need an income of
$15,072 per year to live in Albemarle, while a single adult with two pre-school children needs
$31,765. ThiS would put the two family types at 53% and 70% of the VA median income,
respectivelY, and ineligible for most services.
The difference in median incomes is important because the Virginia State median income is
used to determine eligibihty for state assistance programs, such as Section 8 rental aSsistance
and Department of Social Services programs. In most cases, citizens are not eligible for state
assistance if they are over 50% of the State median income. As shown in Table 4, all households
in Albemarle, require an income substantially higher than 50% of the Virginia median income.
For example, the State eligibility standard is only 53% of the Albemarle cost of living for a
single person, but 67% for a single parent with one child. This illustrates the substantial gap
between the point where people in Albemarle need help and when they are eligible to receive it.
TABLE 4
VIRGINIA DEPARTMENT OF SOCIAL SERVICES ELIGIBH,ITY
STANDARDS (50% STATE MEDIAN INCOME) AS A PERCENTAGE
OF THE ALBEMARLE COST OF LIVING
FAMILY TYPE
COL as % COST OF
OF VA MED. LIVING
STATE ELIGIBLE
INCOME (50%)
1 ADULT
2 ADULTS
1 ADULT, 1 CHH,D
2 ADULTS, 1 CHILD
1 ADULT, 2 CI-iT[,DREN
2 ADULTS, 2 CHILDREN
1 ADULT, 3 CHII,DREN
2 ADULT, 3 CIG[,DREN
1 ADULT, 4 CHILDREN
66%
53% 15,072 14,105
57% 21,084 18,443
65% 24,036 18,443
30,121 22,781
70% 31,765 22,781
75% 40,873 27,100
78% 42,361 27,100
76% 48,061 31,465
73% 45,757 31,465
Table 5 illustrates the County's eligibility standards for food stamps and ADC benefits, and
compares those numbers with the cost of living in Albemarle. The ADC figures are used as
threshold amounts to screen income in order to determine if the County will continue with the
computation process.
TABLE 5
ALBEMARLE DEPARTMENT OF SOCIAL SERVICES ELIGIBILITY STANDARDS
FOR FOOD STAMPS & TANF AS % OF ALBEMARLE COST OF LIVING
FOOD STAM~ % OF COST TANF ELIG. % OF COST
FAMII,Y TYPE ELIG. INCOME* OF LIVING* INCOME ' OF LIVING
1 ADULT
2 ADULTS
1 ADULT, 1 CHILD
2 ADULTS, 1 CHILD 17,748
1 ADULT, 2 CI-tlLDREN
2 ADULTS, 2 CHILDREN
1 ADULT, 3 CI-tlLDREN
2 ADULT, 3 CI-III.DREN
1 ADULT, 4 CHILDREN
10,476 69% 3,864 26%
14,112 67% 5,700 27%
14,112 59% 5,700 24%
59% 7,152 24%
17,748 56% 7,152 24%
21,396 52% 8,568 23%
21,396 50% 8,568 20%
25,032 52% 10,140 21%
25,032 55% 10,140 22%
* Income is only one determinant of eligibility
A second problem is that median incomes are calculated by household size, not household
configuration. Thus, the median incomes for a household of three is as follows:
Virginia $45,561
The actual income needed varies substantially for a household of three depending on whether it
consists of two adults and one child or one adult and two children due mostly to child care costs.
Costs of Living - 3 person household
2 Adults, 1 Child $30,121
1 Adult, 2 Children $31,765
As a percent of median income, two adults and one child need 66% of the Virginia median
income, while one adult and two children need 70% of the Virg/nia median.
A third problem with the current methodology is that the Virginia median income does not take
regional and local differences into account. The costs of housing and child care can differ
substantially based on location, but State regulations do not always take these increased costs
into account in calculating eligibility for assistance.
FEDERAL INCOME MEASURES. The following table compares the cost of living
required for Albemarle with the Department of Health and Human Services (HHS) and
the Department of Housing and Urban Development (HUD) poverty income guidelines
for program eligibility (see attachment C).
TABLE
COST OF LIVING COMPARED
TO FEDERAL POVERTY MEASURES
FAMILY TYPE
1 ADULT
2 ADULTS
1 ADULT, 1 CHILD
2 ADULTS, 1 CHILD
1 ADULT, 2 CHILDREN
2 ADULTS, 2 CHILDREN
1 ADULT, 3 CHILDREN
2 ADULT, 3 CHILDREN
1 ADULT, 4 CHILDREN
30,121
ALBEMARLE l~[S HUD
15,072 8,240 19,450
21,084 11,060 22,250
24,036 11,060 22,250
13,880 25,000
31,765 13,880 25,000
40,873 I6,700 27,800
42,361 16,700 27,800
48,061 19,520 30,000
45,757 19,520 30,000
The most striking point is the wide gap between the HI-IS definition of poverty and the standard
required to live in Albemarle. Some of this discrepancy is due to the fact that HHS figures
present costs for the 48 contiguous states and do not adequately reflect the County's substantially
higher cost of living.
The second factor contributing to these low IqI-IS poverty levels is that the HI-IS poverty
guidelines were derived basically from census poverty thresholds. (With some adjustments for
income differentials between families of different sizes). The basic assumption for Census
poverty thresholds has increasingly come under challenge from economists and policy-makers.
The Census definition of poverty is based on the assumption that families of three or more spend
approximately a third of their income on food. This assumption is considered by many to be
unrealistic given the pattern of inflation in non-food items.
The HUD income guidelines for HUD programs are based on predetermined percentages of
geographically-based median income, in this case the Charlottesville MSA. These are more
realistic, but even these figures do not reflect adequately the high cost of living for Albemarle
families (especially as family size increases). Table 7 summarizes the HHS and HUD income
levels as percentages of the Albemarle cost of living.
TABLE 7
FEDERAL POVERTY MEASURES AS PERCENTAGE
OF ALBEMARLE COST OF LIVING
FAMILY TYPE l:mS HUD
1 ADULT 55%
2 ADULTS 52%
1 ADULT, 1 CHII.D 46%
2 ADULTS, 1 CHILD 46%
1 ADULT, 2 CHILDREN 44%
2 ADULTS, 2 CHILDREN 41%
1 ADULT, 3 CHILDREN 39%
2 ADULT, 3 CHILDREN 41%
1 ADULT, 4 CHILDREN 43%
83%
129%
105%
93%
79%
68%
66%
62%
66%
Since many recognize that the I-IHS poverty standards are unrealistically low, they will
sometimes be increased by fixed percentages for eligibility purposes. For example, calculations
may. be made based on 100%, 150% or 200% of poverty. If the Albemarle cost of living is
compared to HHS poverty levels in this way, one finds that a single parent with one child would
need to earn 217% of poverty to meet the cost of living in Albemarle. All federal programs,
such as Head Start, Medicaid, General Relief, Auxiliary Grants and ADC use the HHS guidelines
as a basis, although they are upgraded with cost of living adjustments for regions throughout the
state.
TABLE 8
COST OF LIVING
AS PERCENT OF It~S POVERTY LEVEL
FAMILY TYPE HHS
COL in ALBEMARLE
1 ADULT
2 ADULTS
1 ADULT, 1 CHILD
2 ADULTS, 1 CHILD
1 ADULT, 2 CHILDREN
2 ADULTS, 2 CHILDREN
1 ADULT, 3 CHILDREN
2 ADULT, 3 CHILDREN
1 ADULT, 4 CHILDREN
217%
183% 15,072
191% 21,084
217% 24,036
30,121
229% 31,765
245% 40,873
254% 42,361
246% 48,061
234% 45,757
CONCLUSION:
This revised report is intended as an ongoing effort to create an information base on which to
develop rational public policy for low income citizens in Albemarle County. It has identified the
major costs categories for living in Albemarle and made explicit assumptions about each. From
this information, an Albemarle cost of living was developed by household configuration and
size. The cost data can be adjusted, based on public policy debate, to reflect community
standards more accurately.
The revised Cost of Living report for Albemarle continues to raise serious questions about the
validity of other standards used as measures of need, especially in their failure to account for
different household configurations as well as size. The next step is to analyze federal, state, and
local assistance programs to assess their effectiveness in bridging the gap for households with
incomes below the Albemarle cost of living. From this second level of analysis, one would have
a basis for assessing and developing a rational policy to meet the needs of low income persons.
) )
FAMILY TYPE
EXPENDITURE lA 2A lA IC 2A IC lA 2C 2A 2C lA 3C 2A 3C IA 4C
Housing 466 575 575 645 645 857 85.7 961 961
Child Care 0 0 347 347 659 659 930 930 930
Med. Insurance 73 140 127 194 181 248 181 248 181
Med. Expenses 28 55 40 67 52 79 64 91 78
Dental 9 22 22 22 22 22 22 22 22
Food 136 292 230 382 310 465 430 590 520
Telephone 25 25 25 25 25 25 25 25 25
Transport 245 245 245 245 245 245 245' 245 245
Misc 90 176 176 250 184 330 330 385 385
Total (Avg) 1072 1530 1787 2177 2323 2930 3084 3497 3347
Taxes 184 227 216 333 324 476 446 508 466
Gross Salary 1256 1757 2003 2510 2647 3406 3530 4005 3813
Hourly Wage 7.25 10.14 11.56 14.48 15.27 19.65 20.37 23.11 22.00
Income Required 15072 21084 24036 30121 31765 40873 42361 48061 45757
VA Median 28209 36885 36885 45561 45561 54200 54200 62929 62929
* child care expenses assume a 5% discount for each additional child
** housing costs for one and two-person families are averaged based on 0/1 & 1/2 bedrooms
*** the 1999 Virginia median family incomes were updated estimates from HUD income
limits for a family of four and do not differentiate for family configuration.
U.S. DEPARTMENT OF HUD
STATE : VIRGINIA .... FEB.1999
PROGRAM EFFICIENCY 1-BEDROOM
MSA : Charlottesville, VA
LOW HOME RENT LIMIT 427 504 625 722 806 889 973
HIGH HOME RENT LIMIT 427 504 645 857 961 1074 1159
FOR INFORMATION ONLY:
~.FAIR.,MARKET RENT 427 504 645 857 961 1105 1249
50% RENT LIMIT 486 521 625 722 806 889 973
65% RENT LIMIT 612 657 791 906 990 1074 1159
AREA : Clarke County, VA
LOW HOME RENT LIMIT 305 430 556 694 773 854 934
HIGH HOME RENT LIMIT 305 430 556 764 780 897 1013
FOR INFORMATION ONLY:
FAIR MARKET RENT 305 430 556 764 780 897 1013
50% RENT LIMIT 467 500 601 694 773 854 934
65% RENT LIMIT 587 630 759 868 948 1028 1108
AREA : Culpeper County, VA
LOW HOME RENT LIMIT 375 501 602 695 776 855 936
HIGH HOME RENT LIMIT 375 548 637 842 951 1030 1110
FOR INFORMATION ONLY:
FAIR MARKET RENT 375 548 637 842 1008 1159 1310
50% RENT LIMIT 468 501 602 695 776 855 936
65% RENT LIMIT 588 631 760 869 951 1030 1110
MSA : Danville, VA
LOW HOME RENT LIMIT 291 364 431 505 563 621 680
HIGH HOME RENT LIMIT 291 366 431 578 676 726 779
FOR INFORMATION ONLY:
FAIR MARKET RENT 291 366 431 578 697 801 906
50% RENT LIMIT 340 364 437 505 563 621 680
65% RENT LIMIT 422 454 546 623 676 726 779
MSA : Johnson City-Kingsport-Bristol, TN-VA
LOW HOME RENT LIMIT 303 361 433 501 560 618 675
HIGH HOME RENT LIMIT 303 362 447 581 670 720 772
FOR INFORMATION ONLY:
FAIR MARKET RENT 303 362 447 581 688 791 894
50% RENT LIMIT 337 361 433 501 560 618 675
65% RENT LIMIT 418 450 543 618 670 720 772
AREA : King George County, VA
LOW HOME RENT LIMIT 369 451 541 625 697 769 841
HIGH HOME RENT LIMIT 369 491 551 766 772 887 987
FOR INFORMATION ONLY:
FAIR MARKET RENT 369 491 551 766 772 887 1003
50% RENT LIMIT 421 451 541 625 697 769 841
65% RENT LIMIT 527 566 681 778 848 918 987
HOME PROGRAM RENTS ....
2-BEDROOM 3-BEDROOM 4-BEDROOM 5-BEDROOM 6-BEDROOM
PAGE 43
USD^ United States
Department of
Agriculture
Center for Nutrition
Policy and Promotion
1120 20th Street NW
Suite 200, North Lobby
Washington, DC 20036
Official USDA Food Plans: Cost of Food at Home at Four Levels,
U.S. Average, April 19991
WEEKLY COST MONTHLY COST
AGE-GENDER
CHILD:
1-2 yc~ 15.~ 19.00 22.30 27.10 66.70 82.30 96.60 117.40
3-5 yc~ 16.~0 20.80 25.70 30.80 72.40 90.10 111.40 133.50
6-8 ye~ 20.~ 27.60 34.30 39.90 89.30 119.60 148.60 172.90
9-11 ye~s ~.50 31.30 39.90 46.30 106.20 135.60 172.90 200.60
MALE:
12-14 ye~s 25.30 35.30 43.70 51.30 109.60 153.~ 189.40 222.30
15-19 ye~s 26.~ 36.20 45.20 52.20 112.70 156.90 195.90 226.20
20-50 ye~s 28,~ 36.~ 44.90 54.40 121.30 156,00 194.60 235.70
51 ye~s ~d over 25.20 34.30 42.30 50.80 109.20 148.60 183.30 220.10
FE~LE:
12-19 ye~s 2~.20 ~0.40 ~.80 44.~0 109.~0 1~1.70 1~9.50 192.80
20-~0 ye~s 2~.20 ~1.~0 ~8.~0 49.10 109.~0 1~6.~0 1~.~ 212.80
51 ye~s ~d over 24.80 ~0.~ ~8.10 4~.~0 107.~0 1~2.60 1~.10 197.~0
FA~Y of
20-50 ye~s 58.50 74.30 91.50 113.90 253.60 321.80 396.70 493.40
51 ye~s ~d over 55.00 71.~ 88.40 106.00 238.40 3~.30 383.20 459.50
FAM~Y OF 4:
Couple, 20-50 ye~s ~d
c~l~en~
1-2 ~d 3-5 ye~s 85.30 107.30 131.20 161.40 369.60 4~.90 568.60 699.40
6-8 ~d 9-11 ye~s 98.30 126.40 157.40 189.70 426.~ 547.70 682.10 822.00
1Basis is that all meals and snacks are purchased at stores and prepared at home. For specific foods and quantities of foods in the Low-Cost,
Moderate-Cost, and Liberal Plans, see Family Economics Review, No. 2 (1983); for specific foods and quantifies of foods in the Thrifty
Food Plan, see Family Economics Review, No. I (1984). The food plans are based on 1977-78 Nationwide Food Consumption Survey
data updated to current dollars using the Consumer Price Index for specific food items.
2The costs given are for individuals in 4-person families. For individuals in other size families, the following adjustments are suggested:
1-person--add 20 percent; 2-person--add 10 percent; 3-person--add 5 percent; 5- or 6-person--subtract 5 percent; 7- (or more) person--
subtract 10 percent.
3Ten percent added for family size adjustment.
This file may be accessed on CNPP's home page at: http://www.usda.gov/cnpp Issued May 1999
999 Federal Poverty Guidelines
Page 1 of 2
THE 1999 HI-IS POVERTY GUIDELINES
One Version of the [U.S.] Federal Poverty Measure
[ Information Contacts/References -- Poverty Guidelines & Thresholds -- Also History of U.S. Poverty_ Lines ]
There are two slightly different versions of the federal poverty measure:
· The poverty thresholds, and
· The poverty guidelines.
The poverty thresholds are the original version of the federal poverty measure. They are updated
each year by the Census Bureau (although they were originally developed by Mollie Orshansky of
the Social Security Administration). The thresholds are used mainly for statistical purposes for
instance, preparing estimates of the number of Americans in poverty each year. (In other words, all
official poverty population figures are calculated using the poverty thresholds, not the guidelines.)
The poverty guidelines are the other version of the federal poverty measure. They are issued each
year in the Federal Register by the Department of Health and Human Services (HHS). The
guidelines are a simplification of the poverty thresholds for use for administrative purposes -- for
instance, determining financial eligibility for certain federal programs. (The full text of the Federal
R ~gi~ tqr......... !~9~! ~.~...w! ~...~!~ ~.... ~.~.9. 9.?? ..v..~...~... ~.Ngu!~e!~....! ~...~ ~.!!.al? ~...!/~r.~.:.~ .................................................................................................................................................................
1999 HHS Poverty Guidelines
Size of 48 Conti~uous
Family Unit States and D.C. Alaska Hawaii
1 $ 8,240 $10,320 $ 9,490
2 11,060 13,840 12,730
3 13,880 17,360 15,970
4 16,700 20,880 19,210
5 19,520 24,400 22,450
6 22,340 27,920 25,690
7 25,160 31,440 28,930
8 27,980 34,960 32,170
For each additional
person, add 2,820 3,520 3,240
SOURCE: Federal Register , VoL 64, No. 52, March 18, 1999, pp. 13428-13430.
http://aspe.hhs.gov/poverty/99poverty.htm 7/30/99
1999 Federal Poverty Guidelines
Page 2 of 2
(The separate poverty guidelines for Alaska and Hawaii reflect Office of Economic Opportunity
administrative practice beginning in the 1966-1970 period. Note that the poverty thresholds-- the
original version of the poverty measure -- have never had separate figures for Alaska and Hawaii.)
Programs using the guidelines (or percentage multiples of the guidelines -- for instance, 130 percent
of the guidelines) in determining eligibility include Head Start, the Food Stamp Program, the
National School Lunch Program, and the Low-Income Home Energy Assistance Program. Note that
in general, public assistance programs (Aid to Families with Dependent Children and its block grant
successor Temporary Assistance for Needy Families, and Supplemental Security Income) do NOT
use the poverty guidelines in determining eligibility. The Earned Income Tax Credit program also
does NOT use the poverty guidelines to determine eligibility.
The poverty guidelines (unlike the poverty thresholds) are designated by the year in which they are
issued, For instance, the guidelines issued in March 1999 are designated the 1999 poverty
guidelines. However, the 1999 HHS poverty guidelines only reflect price changes through calendar
year 1998; accordingly, they are approximately equal t° the Census Bureau poverty thresholds for
calendar year 1998. (The 1998 thresholds will be issued in final form about September or October
1999; a preliminary version of the 1998 thresholds is now available from the Census Bureau.)
The poverty guidelines are sometimes loosely referred to as the "federal poverty level" (FPL), but
that term is ambiguous, and should be avoided in situations (e.g., legislative or administrative) where
precision is important. _ ................................
Go to the page of Information Contacts and References on the Poverty Guidelines, the Poverty
Thresholds, and the Development and History of U.S. Poverty Lines.
Return to the Poverty Guidelines, Research, and Measurement main page.
http://aspe.hhs.gov/poverty/99poverty.htm 7/30/99
Page 1 of 13
51 VA 3 Albemarle County 1540 MSA: Charlottesville, VA
~D AREA, ME~t~ FAMILY INCOME (EFFECTIVE 1-27-99): $ 55600
L30 30% OF MEDIAi~ (1-8 PER.) 11700 13350 15000 16700 18000 19350 20700 22000
L50 VERY LOW INCOME (1-8 PER.) 19450 22250 25000 27800 30000 32250 34450 36700
L80 LOW INCOME (1-8 PERSON) 31150 35600 40050 44500 48050 51600 55150 58700
"FMR FAIR MARKET RENT(O-4 BEDRM EFFECTIVE 10-1-98) 427 504 645 857 96~
51 VA 65 Fluvanna County 1540 MSA: Charlottesville, VA
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 55600
L30 30% OF MEDIAN (1-8 PER.) 11700 13350 15000 16700 18000 19350 20700 22000
L50 VERY LOW INCOME (1-8 PER.) 19450 22250 25000 27800 30000 32250 34450 36700
L80 LOW INCOME (1-8 PERSON) 31150 35600 40050 44500 48050 51600 55150 58700
FMR FAIR MARKET RENT(0-4 BEDRM EFFECTIVE 10-1-98) 427 504 645 857 961
51 VA 79 Greene County 1540 MSA: Charlottesville, VA
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 55600
L30 30% OF MEDIAN (1-8 PER.) 11700 13350 15000 16700 18000 19350 20700 22000
L50 VERY LOW INCOME (1-8 PER.) 19450 22250 25000 27800 30000 32250 34450 36700
L80 LOW INCOME (1-8 PERSON) 31150 35600 40050 44500 48050 51600 55150 58700
FMR FAIR MARKET RENT(0-4 BEDRM EFFECTIVE 10-1-98) 427 504 645 857 961
51 VA 540 Charlottesville city 1540 MSA: Charlottesville, VA
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 55600
L30 30% OF MEDIAN (1-8 PER.) 11700 13350 15000 16700 18000 19350 20700 22000
L50 VERY LOW INCOME (1-8 PER.) 19450 22250 25000 27800 30000 32250 34450 36700
L80 LOW INCOME (1-8 PERSON) 31150 35600 40050 44500 48050 51600 55150 58700
FMR FAIR MARKET RENTI0-4 BEDRM EFFECTIVE 10-1-98) 427 504 645 857 961
51 VA 43 Clarke County 1650 MSA: Clarke County, VA
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 54900
L30 30% OF MEDIAN (1-8 PER.) 11200 12800 14400 16000 17300 18600 19850 21150
L50 VERY LOW INCOME (1-8 PER.) 18700 21350 24050 26700 28850 30950 33100 35250
L80 LOW INCOME (1-8 PERSON) 29900 34200 38450 42700 46150 49550 52950 56400
FMR FAIR MARKET RENT(0-4 BEDRM EFFECTIVE 10-1-98) 305 430 556 764 780
51 VA 47 Culpeper County 1890 MSA: Culpeper County, VA
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 53500
L30 30% OF MEDIAN (1-8 PER.) 11250 12850 14450 16050 17350 18600 19900 21200
L50 VERY LOW INCOME (1-8 PER.) 18750 21400 24100 26750 28900 31050 33150 35300
LB0 LOW INCOME (1-8 PERSON) 29950 34250 38500 42800 46200 49650 53050 56500
FMR FAIR MARKET RENT(0-4 BEDRM EFFECTIVE 10-1-98) 375 548 637 842 1008
51 VA 143 Pittsylvania County 1950 MSA: Danville, VA
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 38900
L30 30% OF MEDIAN (1-8 PER.) 8150 9350 10500 11650 12600 13550 14450 15400
L50 VERY LOW INCOME (1-8 PER.) 13600 15550 17500 19450 21000 22550 24100 25650
L80 LOW INCOME (1-8 PERSON) 21800 24900 28000 31100 33600 36100 38600 41100
FMR FAIR MARKET RENT(0-4 BEDRM EFFECTIVE 10-1-98) 291 366 431 578 697
51 VA 590 Danville city 1950 MSA: Danville, VA
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 38900
L30 30% OF MEDIAN (1-8 PER.) 8150 9350 10500 11650 12600 13550 14450 15400
L50 VERY LOW INCOME (1-8 PER.) 13600 15550 17500 19450 21000 22550 24100 25650
LB0 LOW INCOME (1-8 PERSON) 21800 24900 28000 31100 33600 36100 38600 41100
FMR FAIR MARKET RENT(0-4 BEDRM EFFECTIVE 10-1-98) 291 366 431 578 697
51 VA 169 Scott County 3660 MSA: Johnson City-Kingsport-Bris
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 38600
L30 30% OF MEDIAN (1-8 PER.) 8100 9250 10400 11600 12500 13450 14350 15300
L50 VERY LOW INCOME (1-8 PER.) 13500 15450 17350 19300 20850 22400 23950 25500
L80 LOW INCOME (1-8 PERSON) 21600 24700 27800 30900 33350 35800 38300 40750
FMR FAIR MARKET RENT(0-4 BEDRM EFFECTIVE 10-1-98) 303 362 447 581 688
51 VA 191 Washington County 3660 MSA: Johnson City-Kingsport-Bris
MED AREA MEDIAN FAMILY INCOME (EFFECTIVE 1-27-99): $ 38600
L30 30% OF MEDIAlq (1-8 PER.) 8100 9250 10400 11600 12500 13450 14350 15300
L50 VERY LOW INCOME (1-8 PER.) 13500 15450 17350 19300 20850 22400 23950 25500
L80 LOW INCOME (1-8 PERSON) 21600 24700 27800 30900 33350 35800 38300 40750
http ://www.huduser.org/datasets/il/fmr99/hud99va. txt 6/10/99