What Missing Middle Means - and Why it Matters

In Jackson County, a quiet crisis is unfolding in living rooms and around kitchen tables across our community. Essential workers—teachers, nurses, firefighters, retail managers, and office professionals—are finding themselves caught in an impossible housing squeeze. They earn too much to qualify for traditional low-income housing assistance, yet not enough to afford market-rate housing. These are our Missing Middle families, and their struggle represents one of the most pressing challenges facing Jackson County today.

Defining the Missing Middle

The Missing Middle refers to households earning between 60% and 120% of Area Median Income (AMI) who find themselves excluded from both affordable housing programs and comfortable market-rate options. In Jackson County, with a median household income of approximately $65,004 for the county and $42,848 for the city of Jackson, this means families earning between roughly $39,000 and $78,000 annually are struggling to find suitable housing.

According to HUD's 2024 income limits for Jackson County, a four-person household earning between $42,150 and $67,450 falls squarely in this Missing Middle range. These aren't abstract numbers—they represent the family down the street where both parents work full-time but still can't afford a decent home, or the single teacher who spends nearly half their paycheck on rent just to live within reasonable commuting distance of their school.

The Housing Reality in Jackson County

The numbers paint a stark picture of our local housing landscape. In the city of Jackson, the median home value sits at $98,000 for homes with mortgages, while general housing costs average $850 per month. While these costs appear reasonable compared to larger metropolitan areas, they become burdensome when considered against local incomes.

Jackson County features 2,071 income-based apartments, with tenants typically paying no more than 30% of their income toward rent and utilities. However, these units serve only the lowest-income residents. For Missing Middle families who earn above income-assistance thresholds but below comfortable housing affordability, options are severely limited.

The housing burden is real and growing. In Jackson County, 11.6% of the population is living with severe housing problems, while 25.5% of Jackson city residents live in poverty. These statistics reveal a community where housing stress extends well beyond the traditionally recognized low-income population.

Who Are the Missing Middle?

Missing Middle families are the backbone of our community's workforce. These households often include children under 18 and represent families vital to the social, cultural, and economic fabric of our city. In Jackson County, they include:

• Teachers and school staff who educate our children but struggle to afford homes in the districts where they work

• Healthcare workers including nurses, technicians, and support staff at Henry Ford Jackson Hospital and other medical facilities

• First responders like police officers, firefighters, and emergency medical personnel who keep our community safe

• Service workers in retail, hospitality, and food service who keep our local economy running

• Manufacturing employees working in Jackson County's industrial sector

• Young professionals starting careers in banking, insurance, and other professional services

From both education and age demographics perspectives, renters in the missing middle do not differ markedly from higher-income renters. They're educated, employed, and committed to their community—they simply face a mismatch between their income and available housing options.

The Challenges They Face

Missing Middle families face a unique set of housing challenges that traditional assistance programs don't address:

Limited Housing Options: Missing middle housing is largely considered "missing" because such building types have been often illegal or difficult to build since the mid-1940s due to single-family zoning and building requirements. This regulatory environment has created an artificial scarcity of moderately-priced housing options like duplexes, townhomes, and small apartment buildings that historically served working families.

The 30% Rule Squeeze: Housing is considered affordable when it costs no more than 30% of a household's income. For a Jackson County family earning $50,000 annually, this means housing costs should remain below $1,250 monthly. However, with median gross rent in Jackson at $879 plus utilities, and considering that many Missing Middle families need larger units for children, they often exceed this threshold.

Asset Building Barriers: Unlike lower-income families who may access homeownership assistance, Missing Middle families typically can't access down payment assistance programs. While Jackson's 100 Homes Program offers $25,000 in down payment assistance for households earning up to 120% of AMI, the limited scope of such programs means most Missing Middle families face homeownership barriers that prevent wealth building through property ownership.

Geographic Displacement: Unable to afford housing near their workplaces, Missing Middle families often face lengthy commutes that increase transportation costs and reduce time with family. This geographic mismatch between jobs and affordable housing creates hidden costs that compound the housing burden.

The Economic Ripple Effects

The Missing Middle housing crisis extends far beyond individual families—it threatens Jackson County's entire economic ecosystem. Restrictive zoning has critical impacts on housing production, the economy and society, leading to financial slowdown and lower economic growth by limiting the number of businesses operating within an area.

Workforce Recruitment and Retention: The scarcity of suitable housing options casts a long shadow on employment prospects, creating a multifaceted challenge that extends far beyond real estate. Local employers struggle to recruit qualified workers who can afford to live in the area, while existing employees may relocate to communities with more affordable housing options.

Consumer Spending Impact: Wealthy households tend to spend a smaller share of their income, so generate a smaller economic multiplier in their local area. Missing Middle families, by contrast, spend most of their income locally on goods and services. When these families are housing-cost-burdened, they have less money to spend at local businesses, reducing economic activity throughout the community.

Business Sustainability: Cities without middle density have seen the loss of third places, places where people spend time which is neither their private residence nor their place of work. These places are important for recreation, meeting neighbors, for adults to make friends, and for community organization. When Missing Middle families can't afford to live in walkable neighborhoods, local businesses lose customers and communities lose vital gathering spaces.

Property Tax Base Erosion: As Missing Middle families move away from Jackson County in search of affordable housing, the local property tax base shrinks. This reduces funding for schools, infrastructure, and public services that benefit all residents.

Why Housing is the Centerpiece

Housing serves as the foundation upon which families build stable, prosperous lives. For Missing Middle families, housing security isn't just about having a roof over their heads—it's about:

Educational Stability: Children in stable housing situations perform better academically. When families move frequently due to housing costs, children face educational disruption that can have lifelong consequences.

Health and Wellness: The stress of high housing costs has been linked with anxiety and depression. Families spending excessive amounts on housing often skimp on healthcare, nutritious food, and other necessities.

Economic Mobility: Homeownership traditionally serves as the primary wealth-building vehicle for middle-class families. When Missing Middle families can't access homeownership, they're excluded from this crucial path to financial security.

Community Investment: Families with stable, affordable housing are more likely to invest in their neighborhoods through civic participation, volunteering, and local business support.

The Path Forward

Addressing Jackson County's Missing Middle housing crisis requires coordinated action from multiple stakeholders. At the state level, the Michigan Missing Middle Housing Program was created in 2022 to provide grants to developers to build or substantially rehabilitate properties kept affordable for households earning 60-120 percent of area median income, though funding remains limited and grant restrictions have made the program difficult to utilize.

Local solutions must include:

Zoning Reform: Cities need to refine zoning to remove barriers and find more areas and processes to allow Missing Middle housing types like duplexes, townhomes, and small apartment buildings in appropriate neighborhoods.

Public-Private Partnerships: Innovative collaborations between government, nonprofits like Jackson Habitat for Humanity, and private developers can create housing solutions that serve Missing Middle families while remaining economically viable.

Employer Engagement: Some companies are coming to the table saying, 'I'll build x units of apartments or homes' when constructing a new manufacturing facility. Jackson County's employers can play a crucial role by supporting workforce housing initiatives.

The Stakes for Jackson County

The Missing Middle housing crisis represents both a challenge and an opportunity for Jackson County. Without a full range of affordable housing options, many metros in the US risk losing residents and families that are vital to the social, cultural, and economic fabric of a city.

Jackson County has the chance to become a model for addressing Missing Middle housing through thoughtful planning, innovative partnerships, and community commitment. By ensuring that teachers can afford to live in the districts where they teach, that nurses can build equity in homes near the hospitals where they heal, and that young families can put down roots in our community, we strengthen the entire region. This is what Jackson Habitat’s 20 by 28 campaign aims to initiate.

The Missing Middle aren't asking for handouts—they're working hard and contributing to our community every day. They deserve housing options that allow them to build stable, prosperous lives in Jackson County. Addressing their needs isn't just the right thing to do—it's essential for our community's economic vitality and long-term success.

When we invest in Missing Middle housing, we invest in Jackson County's future. We ensure that the teachers, nurses, firefighters, and other essential workers who make our community thrive can afford to call it home. That's not just good policy—it's good for all of us.

Learn more about how Jackson Habitat’s 20 by 28 campaign is addressing the housing challenges faced by the Missing Middle in Jackson County.