Low Income (80% of AMI)
In HUD's housing programs, a household earning no more than 80% of area median income, adjusted for household size. It is the upper eligibility line for public housing and many other federal programs.
What Is Low Income?
In federal housing law, low income means a household income no more than 80% of area median income (AMI), adjusted for household size. The definition comes from Section 3 of the U.S. Housing Act of 1937. It is the highest of HUD’s three standard tiers, above very low income (50%) and extremely low income (30%).
The statute requires that units assisted under the 1937 Act, such as public housing, be rented only to families that are low income when they move in.
How It Works
In most areas the low-income limit works out to 80% of the area’s median family income, or of the state’s non-metro median if that is higher. But HUD does not calculate it that way directly. To keep the tiers in order where the very low-income limit has been adjusted, HUD generally sets the four-person low-income limit at 1.6 times (80/50ths) the very low-income limit. Two exceptions apply:
- The limit may not exceed the national median family income, unless high local housing costs justify it.
- Annual decreases are limited to 5%, and increases are capped. The cap was 10% for FY 2026.
The limit is then scaled for household size. Suppose an invented area had a four-person low-income limit of $80,000. Its one-person limit would be $56,000 (70%) and its six-person limit $92,800 (116%).
Low Income in Different Programs
The same words carry different meanings depending on the program:
| Program | What “low income” means |
|---|---|
| HUD Section 8 and public housing | At or below 80% of AMI |
| Community Development Block Grant (CDBG) | At or below 50% of AMI. CDBG’s “low- and moderate-income” group goes up to 80%. |
| Low-Income Housing Tax Credit | “Low-income units” serve households at or below 50% or 60% of AMI, or up to 80% at individual units under income averaging |
| Community Reinvestment Act regulations | Below 50% of AMI. Banks’ “moderate income” category is 50% to under 80%. |
When a program says it serves “low-income households,” check which definition it uses.
Why It Matters for Workforce Housing
The 80% line is where most federal rental subsidy stops. Households just above it can include teachers, first responders, health care workers, and skilled tradespeople. They typically qualify for little direct assistance but can still struggle with market rents in high-cost areas. That is why many workforce housing definitions begin at 80% of AMI, or at 60%, and extend to about 120%. Affordable workforce housing can straddle the line, with some units at or below 80% and others above it.
To find the low-income limit for your area, use HUD’s income limits lookup on the HUD User website.
Sources
- HUD — Methodology for Determining FY 2026 Section 8 Income Limits (PDF) (opens in a new tab)
- 24 CFR § 570.3 — CDBG definitions (Cornell LII) (opens in a new tab)
- 26 U.S. Code § 42 — Low-income housing credit (Cornell LII) (opens in a new tab)
- 12 CFR § 228.12 — Community Reinvestment Act definitions (Cornell LII) (opens in a new tab)
- Congressional Research Service — Workforce or Middle-Income Housing: Analysis and Policy Considerations (R48886, March 25, 2026) (opens in a new tab)
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