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A household is considered housing cost-burdened when 30 percent or more of its monthly gross income is dedicated to housing. Individuals and families whose housing costs exceed their threshold of affordability are likely to struggle to pay for other basic needs, forcing difficult trade-offs. They may have to make decisions that may result in poorer outcomes in other areas of well-being, such as dropping health care coverage or skipping meals to save on costs.
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North Dakota State University
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