Platform · Glossary
Median household income.
The midpoint of the household income distribution for a geography. Half of households earn more, half earn less. Published annually by the ACS at multiple resolutions, from national level down to census tract.
Why median, not average
Income distributions are right-skewed — a small number of very high earners pull the average above what most households actually earn. Median is the standard measure of "typical income" in housing and economic statistics because it survives that skew. A neighborhood with a $75,000 median and $130,000 average has a few high earners; the typical household lives more like the $75K number.
How 3Y uses it
Median household income feeds three places in a report:
- Rent-to-income (affordability) ratio — local median rent divided by local median household income; the foundational affordability signal
- Location score's economic-strength category — combined with wage growth and employment stability
- Benchmarks section — shown alongside state and U.S. medians so users can see how the local area compares
It's also one of the most-commonly searched market signals, which is why 3Y publishes it prominently on every market page.