$90,000 New Low Income In Orange County For Family Of Four

ORANGE COUNTY, CA — The "low income" threshold in Orange County has reached just under $90,000 for a family of four, according to a new report from the U.S. Housing and Urban Development. If you didn't know, that makes Orange County the eighth highest low income in the nation.

"It may be a good barometer of how expensive it is to live in your area," Ed Cabrera, a HUD spokesperson based in San Francisco told the Orange County Register. "It's one metric of affordability in a community."

Families qualify for low income if they earn 80-percent or less than each community's median income, HUD says. Adjustments are made based on fair market rents in areas with high housing and construction costs, Cabrera told the Register.

According to the report, a family of four will qualify for low income if they earn $87,450 or less.

In the Inland Empire, low income is just above the U.S. average at $53,900. In Los Angeles, slightly higher, at $77,500 or less.

How much should your rent be? According to Investopedia, your rent should follow the 30-percent rule. Rent or house payments should equal 30-percent of your income divided by 12 (the number of months in a year.) You should be able to afford rent or a house payment in the neighborhood of $2,250 per month.

Just because you can follow the rule of thumb" doesn't mean that solution is practical for your situation, Investopedia said. Homeowners must consider their individual spending or saving habits, as well as household living expenses, not including rent.

So what house or apartment would you rent in your town?

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