Neighborhood Income Distribution AnalysisThe Reinvestment FundPolicy Advisory Group meetingJune 11, 2009

Goal: Create a Small-Scale Measure ofIncome Homogeneity

Measure concentration on the Census tract level relative to the tract itself (not compared to a state or area concentration).

Take into account regional differences in average income.

Income and homogeneity categories are based on a set of fixed levels – in constant dollars – so that change over time can be estimated.

Census Tract < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual

“Ideal”

Cramer V =

Actual = # of households in each of the income categories as reported by Claritas.

1762 187 56 9 10

“Ideal” = The # of households in each income category if the households were evenly distributed

405 405 405 405 405

Cramer V =

X2 = Chi-square = (1762-405)2/405 + (187-405)2/405 + (56-405)2/56 + (9-405)2/405 + (10-405)2/405

N = Total number of households = 2025

k = Total number of households = 2025

.84

Estimating the Level of Homogeneity

Concentration Level

Cramer V<=.2

Cramer V .2-.4

Cramer V >=.4

All Tracts

Concentration Level

Cramer V<=.2

Cramer V .2-.4

Cramer V >=.4

Low Income Tracts

Concentration Level

Cramer V<=.2

Cramer V .2-.4

Cramer V >=.4

High Income Tracts

Establishing the Income Levels

RegionMedian Family Low Income Range (represents less than

35% of PUMS division)

Median Family Middle Income Range (represents between

35% and 60% of PUMS division

Median Family High Income Range (represents more than

60% of PUMS division)

New England states (CT, MA, ME, RI, VT)

less than $41,180 between $41,180 and $74,429 above $74,429

Middle Atlantic states (NJ, NY, PA)

less than $37,113 between $37,113 and $68,125 above $68,125

East North Central states (IL, IN, MI, OH, WI)

less than $34,571 between $34,571 and $61,007 above $61,007

West North Central states (IA, KS, MN, MO, ND, NE,

SD)less than $34,164 between $34,164 and $59,685 above $59,685

South Atlantic states (DC, DE, FL, GA, MD, NC, SC,

VA, WV)less than $35,038 between $35,038 and $61,312 above $61,312

East South Central states (AL, KY, MS, TN)

less than $27,435 between $27,435 and $50,839 above $50,839

West South Central states (AR, LA, OK, TX)

less than $30,707 between $430,707 and $56,127 above $56,127

Mountain states (AZ, CO, ID, MT, NM, NV,

UT, WY)less than $36,604 between $36,604 and $67,735 above $67,735

Pacific states (CA, OR, WA)

less than $40,670 between $40,670 and $72,212 above $72,212

Final Income Inequality Framework

Cramer V<=.2

Cramer V .2-.4

Cramer V >=.4

Tract MHHI <35% PUMS area

Tract MHHI 35-60% PUMS area

Tract MHHI>60% PUMS area

Final Income Inequality Framework

Income Concentration

Income Classification

Low Medium High

LowLow Income,

Low ConcentrationLow Income,

Medium ConcentrationLow Income,

High Concentration

MiddleMiddle Income,

Low ConcentrationMiddle Income,

Medium ConcentrationMiddle Income,

High Concentration

HighHigh Income,

Low ConcentrationHigh Income,

Medium ConcentrationHigh Income,

High Concentration

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHLow Income, Low Concentration 0 0 0 0 0

ORMHHI=$39,904 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 557 368 270 285 169

“Ideal” 329 329 329 329 329

Cramer V = .20

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHLow Income, Mod Concentration 11.5 10.9 18.2 16.5 9.4

MOMHHI=$31,198 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 608 524 204 108 48

“Ideal” 298 298 298 298 298

Cramer V = .38

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHLow Income, High Concentration 10.3 8.3 16.9 23.5 5.4

ALMHHI=$19,746 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 899 393 175 103 24

“Ideal” 319 319 319 319 319

Cramer V = .49

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHMiddle Income, Low Concentration 6.3 7.3 6.1 4.1 7.6

NYMHHI=$63,720 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 201 284 210 360 150

“Ideal” 241 241 241 241 241

Cramer V = .15

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHMiddle Income, Mod Concentration 45.2 47.5 44.4 42.5 49.1

IAMHHI=$39,375 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 254 272 196 106 17

“Ideal” 169 169 169 169 169

Cramer V = .28

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHMiddle Income, High Concentration .4 .3 .4 .7 .3

NVMHHI=$52,988 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 0 4,479 6,007 0 0

“Ideal” 2,097 2,097 2,097 2,097 2,097

Cramer V = .62

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHHigh Income, Low Concentration 2.9 3.5 1.9 1.6 4.0

FLMHHI=$65,322 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 422 449 416 550 426

“Ideal” 453 453 453 453 453

Cramer V = .06

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHHigh Income, Mod Concentration 16.5 19.6 10.8 9.9 21.5

TXMHHI=$70,147 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 139 165 246 411 51

“Ideal” 202 202 202 202 202

Cramer V = .30

% of all Tracts

% of all HH

% of all Hispanic

HH% of all

Black HH% of all

White HHHigh Income, High Concentration 2.2 2.5 1.3 1.2 2.7

NYMHHI=$292,442 < $25,000

$25,000 – 50,000

$50,000 – 75,000

$75,000 -150,000

> $150,000

Actual 52 40 18 123 710

“Ideal” 189 189 189 189 189

Cramer V = .70

Results by Household Race/Ethnicity

Results by Household Race/Ethnicity

% State Census Tracts Low Income, High Concentration

Rank State% Low Income - High Concentration

Tracts Rank State% Low Income - High Concentration

Tracts1 Mississippi 24.10 26 Connecticut 8.712 West Virginia 21.74 27 Nevada 8.703 Louisiana 19.27 28 South Dakota 8.654 Arkansas 19.21 29 California 8.485 Oklahoma 19.09 30 Illinois 8.156 Alabama 18.86 31 Idaho 8.127 Kentucky 18.80 32 Virginia 7.348 New Mexico 18.78 33 Maryland 6.849 Texas 15.70 34 Colorado 6.39

10 District of Columbia 14.53 35 Massachusetts 6.2411 Tennessee 14.18 36 Nebraska 6.0812 South Carolina 14.03 37 Wisconsin 5.9913 Missouri 13.59 38 Maine 5.6214 Georgia 13.50 39 Utah 5.6015 Ohio 13.41 40 Washington 5.5816 Pennsylvania 12.70 41 Iowa 5.3417 New York 12.63 42 Oregon 5.2518 Arizona 12.37 43 Delaware 4.7619 Indiana 11.59 44 New Jersey 4.6920 Florida 11.49 45 North Dakota 4.0421 North Carolina 10.94 46 Wyoming 4.0022 Rhode Island 10.48 47 Minnesota 2.7623 Montana 10.34 48 Hawaii 2.3524 Kansas 9.25 49 Vermont 2.2925 Michigan 8.85 50 New Hampshire 1.85

51 Alaska 1.44

% State Census Tracts High Income, High Concentration

Rank State% High Income - High Concentration

Tracts Rank State% High Income - High Concentration

Tracts

1 Maryland 8.27 26 District of Columbia 1.162 Virginia 7.68 27 Ohio 0.943 Colorado 7.47 28 Rhode Island 0.874 Minnesota 5.28 29 Wisconsin 0.875 Utah 4.96 30 North Carolina 0.866 Hawaii 4.71 31 Pennsylvania 0.857 Connecticut 4.29 32 Florida 0.848 New Jersey 4.04 33 Indiana 0.809 California 4.00 34 Tennessee 0.75

10 Arizona 3.90 35 Kentucky 0.6211 Kansas 3.84 36 Oklahoma 0.4212 Nebraska 3.35 37 Alabama 0.3813 Nevada 3.26 38 Mississippi 0.1714 Delaware 3.17 39 Oregon 0.1315 Alaska 2.88 40 Iowa 0.1316 Texas 2.78 41 West Virginia 0.0017 Michigan 2.68 42 Louisiana 0.0018 Illinois 2.62 43 Arkansas 0.0019 Massachusetts 1.88 44 South Carolina 0.0020 New Hampshire 1.85 45 Montana 0.0021 Missouri 1.60 46 South Dakota 0.0022 Georgia 1.54 47 Idaho 0.0023 New York 1.49 48 Maine 0.0024 Washington 1.47 49 North Dakota 0.0025 New Mexico 1.22 50 Wyoming 0.00 51 Vermont 0.00

% State Census Tracts Middle Income, Mod Concentration

Rank State Mod Income - Mod Concentration Rank State Mod Income - Mod Concentration1 Iowa 74.33 26 Alaska 51.082 North Dakota 74.24 27 South Carolina 50.843 South Dakota 70.27 28 Michigan 50.234 Wyoming 66.40 29 Colorado 49.615 Nebraska 64.57 30 Texas 49.356 Arkansas 61.92 31 Oregon 49.267 Wisconsin 61.23 32 Montana 49.148 Indiana 59.86 33 Pennsylvania 49.039 Idaho 59.78 34 Illinois 48.91

10 Utah 59.70 35 Washington 48.1411 Mississippi 59.15 36 Florida 45.7812 Tennessee 58.62 37 Maine 45.2713 Alabama 58.10 38 Georgia 43.5414 Vermont 57.71 39 Arizona 43.2915 Oklahoma 56.63 40 Rhode Island 41.9216 Kansas 56.47 41 Virginia 40.9217 Kentucky 56.40 42 New Mexico 39.7618 New Hampshire 55.19 43 Massachusetts 39.7419 Minnesota 54.61 44 West Virginia 38.2620 North Carolina 54.22 45 New York 37.6921 Ohio 54.14 46 Connecticut 36.2422 Louisiana 53.54 47 New Jersey 35.4223 Delaware 53.44 48 California 33.5224 Nevada 52.39 49 Maryland 33.5025 Missouri 51.24 50 Hawaii 31.37

51 District of Columbia 30.23

All Categories Distribution by State

% Census tracts