“OTHERS”
– William Booth, Founder of the Salvation Army

If we are to better the future we must disturb the present.
– Catherine Booth, Founder of the Salvation Army

Just an Old Guy

Workforce Housing

More pondering from an old retired guy.

What comes to mind when you hear the term workforce housing?
For some, it may evoke outdated images of company towns—small shacks near a coal mine—or temporary shelters next to farm fields or orchards. These arrangements were often low-quality, offered little stability, and existed solely to meet labor needs rather than to support long-term residency. They were about necessity, not about building strong neighborhoods or lasting communities.

In modern Virginia planning practice, workforce housing refers to housing affordable to households earning moderate incomes, typically measured as a percentage of the Area Median Income (AMI) published annually by the U.S. Department of Housing and Urban Development (HUD). Workforce housing generally serves households earning between 60 percent and 120 percent of AMI, with particular emphasis on those earning 80 percent to 100 percent of AMI, whose incomes align closely with local wages but who are often priced out of the local housing market.

Example of Mixed Use – Commercial on Street Level, Residential Above
Example of 700 sqft – 1,500 sqft Homes on 10 Acres

Planning for workforce housing is grounded in the principle that healthy communities depend on the ability of people who work locally also to live locally. Stable neighborhoods—where residents can afford to remain over time—support informal social interaction, civic participation, volunteerism, and long-term investment in the community.

Virginia’s planning framework recognizes that residents with diverse occupations, skills, and income levels sustain communities. Local wages for teachers, first responders, healthcare workers, municipal employees, service workers, and skilled trades often fall within the moderate-income AMI range, even when these positions are essential to public safety, education, healthcare delivery, and economic activity. Workforce housing policies explicitly acknowledge this relationship between wages and housing costs.

A healthy and sustainable community, as envisioned in a Comprehensive Plan, develops in a way that allows households earning local wages to afford housing costs without an excessive burden. Housing is generally considered affordable when total housing expenses do not exceed 30 percent of gross household income, a standard commonly used in Virginia housing policy and planning analysis. When housing costs exceed this threshold for households earning 80 to 100 percent of AMI, the result is increased commuting, reduced local workforce stability, and diminished community cohesion.

This outcome is not inevitable. It often reflects land use patterns and development incentives that prioritize higher-end housing production without corresponding opportunities for housing affordable to moderate-income households. Over time, reliance on market forces alone can unintentionally exclude the local workforce, even as employment opportunities remain within the community.

Workforce housing is not synonymous with rent control, large-scale public housing, employer-owned housing, or traditional income-restricted low-income housing. Instead, it focuses on encouraging and incentivizing the development of well-designed, market-responsive housing—including ownership and rental options—that are affordable to households earning local wages, typically within the 60 to 120 percent AMI range.

By aligning housing supply with local wage realities and AMI benchmarks, workforce housing advances the Virginia planning goals of orderly growth, economic sustainability, reduced commuter impacts, and the long-term vitality of towns and neighborhoods.

Further Explanation of Terms
(What do they mean in the local community?)

What Is Workforce Housing?

Workforce housing is housing that working people in a community can realistically afford. It is designed for residents who earn local wages and provide essential services—teachers, first responders, healthcare workers, service employees, tradespeople, and young professionals.

This type of housing helps ensure that the people who work in a town can also live there, rather than being forced to commute long distances.

What Does “Affordable” Mean?

Housing is generally considered affordable when a household spends no more than 30 percent of its income on rent or mortgage payments, including basic utilities. When housing costs rise above that level, families often struggle to cover other necessities such as food, childcare, transportation, and healthcare.

What Is AMI?

AMI stands for Area Median Income. It is a number published each year by the U.S. Department of Housing and Urban Development that represents the median household income in a region. Half of households earn more than the AMI, and half earn less.

AMI is used across Virginia to:

Who Is Workforce Housing For?

Workforce housing typically serves households earning about 60% to 120% of AMI, with a strong focus on those earning around 80% to 100% of AMI. These are often households that:

Many full-time workers fall into this range, even though they hold stable and essential jobs.

Why Does Workforce Housing Matter?

When housing costs exceed what local workers can afford:

Workforce housing helps maintain a balanced, resilient community where people can live near their jobs, schools, and services.

What Workforce Housing Is — and Is Not

Workforce housing is:

Workforce housing is not:

Instead, it relies on thoughtful planning and incentives to encourage housing that meets real local needs.

The Goal

The goal of workforce housing is simple:
A community where the people who support daily life can afford to live, stay, and put down roots.

This approach supports economic stability, reduces commuting pressures, and helps preserve the sense of community that residents value.

Dana Libby, Berryville, VA