Affordable Workforce HousingResource Center
Dictionary · Income & affordability

Income Limits

Definition

The maximum household incomes, set as percentages of area median income and adjusted for household size, that determine who is eligible for HUD-assisted and other affordable housing.

Also called: HUD income limits · Section 8 income limits · IL · MTSP income limits
Which housing programs serve which incomes, as a percentage of area median income (AMI) Public housing Eligible to 80%; at least 40% of new admissions at or below 30% Housing Choice Vouchers Generally to 50% (80% only in limited cases); 75% of new admissions at or below 30% National Housing Trust Fund 30% of AMI or the poverty line, if higher Low-Income Housing Tax Credit To 60%; individual units to 80% with income averaging Workforce housing Roughly 60/80% to 120%; no single federal definition Market-rate housing What the private market typically serves
Typical income targets as a share of area median income (AMI). Dark segments mark the lowest incomes, where rules require a minimum share of new admissions; lighter segments show limits that apply only in some cases. "Moderate income" has no single definition. Each program sets its own rules — follow the links for details and sources.

What Are Income Limits?

Income limits are the income ceilings that decide whether a household can get into an affordable housing program. The U.S. Department of Housing and Urban Development (HUD) is required by law to publish them. They govern public housing, Housing Choice Vouchers, project-based Section 8, and HUD’s elderly and disability housing programs. Dozens of other federal, state, and local programs borrow them too.

Each limit is a percentage of area median income (AMI), so the dollar figure differs from place to place. HUD publishes a set for every metropolitan area, parts of some metro areas, and every non-metro county.

How Income Limits Work

The statutory definitions come from Section 3 of the U.S. Housing Act of 1937:

TierStarting point
Extremely low income30% of AMI or the federal poverty guideline, whichever is higher
Very low income50% of AMI
Low income80% of AMI

HUD then adjusts these figures. It calculates the very low-income limit first. It raises that limit where rents are unusually high relative to incomes, using Fair Market Rents. It lowers it in unusually high-income areas and keeps it from falling below a floor based on the state’s non-metro median. Most other limits are derived from the very low-income figure, which keeps the tiers in the right order.

Two more rules matter:

  • Household size. Limits are set for a family of four and scaled: 70% of that figure for one person, 80% for two, 90% for three, and up to 132% for eight.
  • Caps and floors. Annual decreases are limited to 5%. Increases are capped at the greater of 5% or twice the national change in median income, with an absolute cap of 10%. The 10% cap applied for FY 2026. These caps and floors do not apply to the extremely low-income limit.

The FY 2026 limits took effect on May 1, 2026. That was a month later than the usual April 1, because the Census Bureau delayed the release of survey data HUD relies on.

Different Programs, Different Limits

Properties financed with the Low-Income Housing Tax Credit or tax-exempt housing bonds use separate Multifamily Tax Subsidy Project (MTSP) limits, which HUD also publishes. Other programs use other percentages, such as the 60% and 65% of median standards in the HOME program and 115% of median for homebuyers using mortgage revenue bonds. Always confirm which set a property or program uses.

Criticisms and Limitations

Income limits start from Census survey data that is about two years old. The FY 2026 limits use 2024 data, which HUD projects forward with a wage-growth factor. The annual cap also means limits can trail fast-rising local incomes. Because one number covers an entire metro area, they can also overstate or understate incomes in particular neighborhoods.

To find the limits for your area, use HUD’s income limits lookup on the HUD User website.

Sources

  1. HUD User — Income Limits (FY 2026 data effective May 1, 2026) (opens in a new tab)
  2. HUD — Methodology for Determining FY 2026 Section 8 Income Limits (PDF) (opens in a new tab)
  3. HUD — Methodology for Calculating FY 2026 Median Family Incomes (PDF) (opens in a new tab)
  4. HUD — Statement on FY 2026 Median Family Income Estimates and Income Limits (PDF) (opens in a new tab)
  5. HUD User — Multifamily Tax Subsidy Projects (MTSP) Income Limits (opens in a new tab)

Updated · How we fact-check