Local group aims to raise Cincinnati income tax to fund $645 per month apartments

CINCINNATI (WKRC) – The median rent in Cincinnati now tops $1,500 a month, but one group is hoping to create hundreds of new affordable housing units for a fraction of that price. They’re asking Cincinnati leaders to raise the income tax to fund it.

Cincinnati Action for Housing Now is collecting signatures for a ballot initiative that would require the city to raise its income tax from 1.8% to 2.1%.

Robin Wright-Pierce estimates the move would generate $35 to $50 million a year, which would be used to build affordable housing units and maintain existing ones.

“Most two-bedrooms would rent for about $645 a month or less, but it could vary based on income,” Wright-Pierce said.

According to Redfin, the median asking rent in Cincinnati is $1,550 a month as of February 2023. The median household income is just over $45,000, according to the U.S. Census Bureau.

“We know that we need resources to create truly affordable housing in our community,” said Wright-Pierce, who said the group’s petition already has more than 2,000 of the required 10,000 signatures to appear on the ballot next year.

“We don’t even have to convince people to sign the petition. People are excited about this,” Wright-Pierce said.

Local 12 asked Wright-Pierce if people would have less money to spend on housing if the city raised their taxes.

“That’s a common argument that I definitely understand. Nobody wants to pay more taxes,” Wright-Pierce replied.

However, Wright-Pierce points out that the income tax was already 2.1% before 2020.

Wright-Pierce said the extra 0.3% wouldn’t cost most people a significant amount.

“It also amounts to, for most Cincinnati families, less than $11 a month,” Wright-Pierce said.

If the measure were approved, the city would have until 2025 to raise its tax rate.