📰 What Happened: Researchers from Harvard’s Joint Center ran the numbers and discovered that residual income metrics capture a much more nuanced picture of financials than the traditional 30% rent-to-income threshold. In total, 5.3 million American households fall through the cracks of the standard measure.

🔍 A Closer Look: Households earning below $45,000 are most affected, but the analysis also shows a surprising geographic reversal. Rural and lower-cost areas, like West Virginia, have the highest residual income burdens—not pricey cities like San Francisco. Even with average annual rents around $18,000, total household expenses exceed $57,000 for typical renters.

🧠 Why It Matters: The findings challenge current housing policy frameworks. While rent subsidies help, only direct and flexible income support—such as $1,000 monthly stipends—meaningfully reduce rent burdens. For policymakers, the message is clear: addressing affordability requires boosting incomes, not just lowering housing costs.