Merete Muenter
Merete Muenter, a choreographer and director of musical theatre, pays just $623 a month for her luxurious studio flat in the heart of Manhattan. Merete Muenter's Instagram

When most people think of affordable housing in the US, they may picture a run-down, minimally equipped property located far from the city centre. However, Merete Muenter, a choreographer and director of musical theatre, has shattered this stereotype with her extraordinary living situation.

Merete pays just $623 a month for a luxurious studio flat in the heart of Manhattan. Yes, you read that correctly—$623. And no, it's not in a neglected, crime-ridden building.

In fact, her apartment is more upscale than many of the market-rate properties she has lived in over the years. "People assume my apartment is a shabby flat in a dodgy area, but it's in a luxury building with amenities like a doorman, elevators, a gym, a roof terrace, and even a washer and dryer in my apartment!" she shared with the NYPost.

So, how did Merete manage to secure such an affordable, high-quality apartment in one of the world's priciest cities? The answer lies in affordable housing, and how it's often misunderstood.

The Reality of Affordable Housing

Merete enjoys luxury living, which was made possible by winning an affordable housing lottery in 2014—a process that many people don't realise could offer them a chance to live in desirable areas without breaking the bank.

Affordable housing doesn't necessarily mean you must compromise on quality or location. In contrast, it's about strategically finding affordable rents in prime areas, often with facilities that would be hard to find in standard rental properties.

In Merete's case, she lives in a luxury building with all the bells and whistles—things many people would expect only in high-end, market-rate properties. 'I never thought I'd be able to live in midtown Manhattan and still have money left over for my art,' she said.

In the US, affordable housing is commonly concerned with government subsidies or tax credits incentivising private developers to build residential units at lower rates for people with qualifying incomes. The key here is that this isn't just for the "needy"—many working professionals and middle-income earners can be eligible.

This leads us to an important question: What does it mean to qualify if affordable housing isn't just for the destitute? The eligibility process can be confusing, and many people don't realise they may qualify for these housing opportunities. Let's clear up some misconceptions.

Busting Affordable Housing Myths

One of the most common myths surrounding affordable housing is that it's only for people who are struggling financially. However, many affordable housing programmes cater to people earning up to 80% of the area's median income.

Although Merete earns a modest salary as a choreographer and theatre director, she is not in dire financial straits. Working professionals in similar positions can qualify for affordable housing and live comfortably.

Merete Muenter
Merete's building, boasts a rooftop terrace, a courtyard, and a gym—all things you'd expect from a swanky Manhattan property, not an affordable housing complex. Merete Muenter's Instagram

'I'm not on welfare or struggling to make ends meet. I'm just a person trying to live in an area I love without being completely priced out,' Merete says, adding that some of her friends and family were shocked that she qualified, given her career as a working artist.

Another major misconception about affordable housing is that it's only available in undesirable areas. Well, not really. Real estate experts say many affordable housing developments are in highly sought-after neighbourhoods.

Many affordable housing projects are built by private developers incentivised by tax breaks to include a portion of units at below-market rates.

'Properties financed with the low-income housing tax credit are located in a broad range of socioeconomic locations,' Roxanne Nicolas, vice president of NYC's Hudson Housing Capital, told NYCPost. This means working professionals can still access high-quality homes in desirable areas at a fraction of the usual price.

Merete's building, for example, boasts a rooftop terrace, a courtyard, and a gym—all things you'd expect from a swanky Manhattan property, not an affordable housing complex.

While Merete can be an example of making it through, securing a spot in these affordable housing developments is not as simple as just applying. It can be competitive, and once your name is drawn from the lottery, there's still an extensive process to prove that you qualify.

The Application Process: It's Not a Guarantee

The excitement of winning the affordable housing lottery can quickly become a reality check, as the application process is far more detailed than most people expect.

While elaborating on that, Merete said, 'Even though your name was pulled in the housing lottery, it doesn't mean that you have automatically gotten an apartment.' She added, 'You have to go through a very stringent application process once your name is drawn, and it's way more involved than just showing a few recent pay stubs.'

The lottery is just the beginning; the application and qualification stage determines whether you'll get the flat. For many individuals, the next hurdle is proving that they meet the ongoing eligibility requirements, especially regarding annual income reviews.

Affordable Housing's Lasting Impact

Many residents fear that any shift in their income can impact their affordable housing situation. They fear that they might be kicked out once they get a raise or experience a decline in their income.

Fortunately, that's not the case. As Merete points out, 'They can't just remove you from the building if you suddenly earn more money—it's all about when you first qualified.'

With that being said, developers usually require tenants to prove their income annually. If your income rises, your rent may also increase, but this doesn't necessarily mean you'll lose your home.

The Future of Affordable Housings

If affordable housing offers so many benefits, why don't more people know about it or take advantage of these opportunities? Some real estate experts believe that part of the issue is the stigma that still surrounds these housing programmes.

Shomon Shamsuddin, a professor of social policy at Tufts University, told ABC News, 'Ultimately, pushback against affordable housing tends to draw on the assumption that such housing raises crime rates because people tend to believe the poor are more likely to commit crimes.'

Merete's story is an essential reminder that affordable housing doesn't have to mean sacrificing quality or location.

While affordable housing schemes aren't perfect, and the application process can be challenging, they offer a lifeline to many who would otherwise struggle to find a home in high-cost cities.