HUD Section 8 Income Limits: Tiers, Area, and HOTMA Assets

To qualify for a Section 8 Housing Choice Voucher, your household income must fall below a ceiling set as a percentage of the Area Median Income (AMI) where you live, adjusted for how many people are in your family. HUD Section 8 income limits come in three tiers — 30%, 50%, and 80% of AMI — and federal law reserves at least 75% of newly issued vouchers each year for households at the lowest tier. For fiscal year 2026, HUD’s national baseline median family income is $106,800, but your actual limit depends entirely on your county or metro area.¹

The Three Income Tiers

HUD sorts applicants into three categories based on where their income falls relative to local AMI:

Extremely Low Income. Household earnings at or below the higher of 30% of AMI or the federal poverty guideline for your family size. The poverty-guideline floor matters most in rural or low-cost areas where 30% of AMI would drop below subsistence. If the poverty guideline actually exceeds the very low-income limit for a given family size, the extremely low-income limit caps at the very low-income level.²
Very Low Income. Household earnings at or below 50% of local AMI. This is the standard eligibility ceiling for the voucher program.
Low Income. Household earnings at or below 80% of local AMI. Families in this bracket rarely receive new vouchers but may qualify in limited circumstances such as portability transfers or certain renewals.

Federal law requires local housing authorities to direct at least 75% of newly issued vouchers each fiscal year to extremely low-income households. The remaining 25% can go to very low-income families. Low-income families at the 80% threshold represent a small share of new admissions.³

How Household Size Adjusts the Limit

HUD publishes limits for households of one to eight people, using the four-person family as the base. Smaller families get a lower ceiling; larger families get a higher one:

1 person: 70% of the four-person limit
2 persons: 80%
3 persons: 90%
4 persons: 100% (the base)
5 persons: 108%
6 persons: 116%
7 persons: 124%
8 persons: 132%

For each additional person beyond eight, add another 8 percentage points.⁴

A detail that catches applicants off guard: a live-in aide does not count as a household member. If someone lives with you to provide necessary supportive services, their earnings are excluded from your household income, and they don’t increase your household size for the limit calculation.⁵

Why the Dollar Amount Depends on Where You Live

HUD builds income limits from median family income estimates drawn primarily from the Census Bureau’s American Community Survey, combined with fair market rent area definitions for each metropolitan area and non-metropolitan county.² The median is the midpoint of a region’s income distribution: half of families earn more, half earn less.

Because of this localization, dollar limits vary widely. A family of four might face a very low-income limit of $40,000 in one county and $70,000 or more in an expensive metro area. Both figures represent 50% of AMI in their respective locations. HUD also applies caps so the four-person low-income limit in any area doesn’t exceed the national median family income ($106,800 for FY 2026), except where high local housing costs justify going higher.¹

Limits are recalculated and published annually, typically in April or May. FY 2026 limits were issued on May 1, 2026.⁶ If you checked eligibility last year, your area’s numbers may have shifted.

What HUD Counts as Income

HUD’s definition of “annual income” is broader than what shows up on a tax return. It includes all amounts received by every household member age 18 or older (or the head of household or spouse regardless of age), plus unearned income received on behalf of dependents under 18.⁵

Counted income includes wages and salaries, Social Security payments, pensions, welfare assistance, recurring gifts, alimony, and net self-employment earnings. Interest and dividends from bank accounts and investments count too. If you run a small business, HUD looks at net income after allowable business expenses, not gross revenue.

Certain categories are specifically excluded: income earned by foster children, reimbursements for medical expenses, some educational scholarships and grants, and earnings from live-in aides.⁵ Temporary or nonrecurring income, such as a one-time insurance settlement, generally doesn’t count. But recurring child support, regular financial contributions from family members, and military pay all do. Ambiguous cases go to your local housing authority to decide under HUD guidance.

One practical note on timing: current income is what matters, not last year’s tax return. If your earnings have changed recently, the PHA will look at current pay stubs and benefit statements to project your annual income.⁷

The Asset Cap Under HOTMA

Income isn’t the only financial test. Under rules implemented through the Housing Opportunity Through Modernization Act (HOTMA), households whose net family assets exceed $100,000 (adjusted annually for inflation) are ineligible for Section 8. For 2026, that adjusted threshold is $105,574. Families who own real property suitable for occupancy are also ineligible, regardless of total asset value.⁸

Not everything you own counts toward the cap. HUD excludes retirement accounts recognized by the IRS (401(k)s, IRAs, and similar plans) and education savings accounts such as 529 plans and Coverdell accounts. A family with $80,000 in a 401(k) and $30,000 in a checking account would have $30,000 in net family assets for this purpose.

Assets can also affect your income calculation. When net family assets exceed a separate annually adjusted threshold (based on a $50,000 statutory floor) and actual returns can’t be determined, HUD imputes income using a passbook savings rate. For 2026, that rate is 0.40%.⁹ On $60,000 in countable assets, that adds $240 to your annual income. Families whose net assets fall at or below $52,787 in 2026 can self-certify the value without producing account statements.

Deductions That Lower Your Counted Income

Gross income determines whether you clear the eligibility threshold, but rent is based on adjusted income, which is almost always lower. HUD requires housing authorities to subtract the following mandatory deductions:¹⁰

Dependent allowance of $500 per dependent for 2026 (adjusted annually from a $480 base).
Elderly or disabled family deduction of $550 for 2026, if the head of household, co-head, or spouse is age 62 or older or has a disability.
For elderly or disabled families only, unreimbursed medical and health care costs exceeding 10% of annual income.
Reasonable child care expenses necessary for a family member to work or attend school.
Disability assistance expenses for attendant care or assistive devices that enable a family member to work, up to the amount of earned income those expenses make possible.

These deductions reduce the adjusted income figure your rent is calculated against, so they carry through to your monthly payment.

Eligibility Rules Beyond Income

Income and assets are the main financial gates, but not the only qualifications. Federal housing assistance is restricted to U.S. citizens and noncitizens with eligible immigration status under Section 214 of the Housing and Community Development Act of 1980. Housing authorities verify status through the USCIS SAVE system.¹¹ Families with a mix of eligible and ineligible members can still receive assistance, but the subsidy is prorated based on the number of eligible members.

PHAs also run background screenings and may deny assistance based on criminal history, prior evictions from federally assisted housing, or outstanding debts to a PHA. These policies vary by agency.

How to Look Up Your Area’s Current Limits

The fastest way to find your numbers is HUD’s Income Limits Documentation System on the HUD User website. Select the fiscal year, your state, and your county, and the tool generates a table showing dollar limits for each family size across all three tiers.¹² These are the same figures your local housing authority uses during screening.

If you’d rather have someone walk you through it, your local Public Housing Agency can explain the applicable limits and any local preferences that affect waitlist ranking. Many PHAs have long waitlists, and some close their lists entirely when demand overwhelms capacity. Check whether a waitlist is open before you spend time gathering documentation. When you apply, expect to provide proof of wages, bank account information, Social Security or pension statements if applicable, and identification for every household member.

1
U.S. Department of Housing and Urban Development. FY 2026 Section 8 Income Limits
2
HUD USER. Income Limits
3
HUD Exchange. How Are Low-Income and Very Low-Income Determined?
4
U.S. Department of Housing and Urban Development. Methodology for Determining Section 8 Income Limits
5
eCFR. 24 CFR 5.609 – Annual Income
6
U.S. Department of Housing and Urban Development. Dataset Update Schedule
7
U.S. Department of Housing and Urban Development. Housing Choice Voucher Tenants
8
HUD Exchange. Assets, Asset Exclusions, and Limitation on Assets Resource Sheet
9
U.S. Department of Housing and Urban Development. 2026 HUD Inflation-Adjusted Values and Passbook Rate
10
eCFR. 24 CFR 5.611 – Adjusted Income
11
U.S. Department of Housing and Urban Development. Citizenship and Immigration Status Verification
12
U.S. Department of Housing and Urban Development. FY 2026 Income Limits Documentation System