For federal housing programs, “low income” means a household earning less than 80% of the area median income (AMI) for the place they live, adjusted for family size. That is the ceiling. Most subsidized housing actually targets families further down the scale: “very low-income” at or below 50% of AMI, and “extremely low-income” at or below 30% of AMI or the federal poverty guideline, whichever is higher. The dollar figure behind each percentage changes by county and by household size, so the same paycheck can qualify in one metro and disqualify in another.
The Three HUD Income Tiers
The U.S. Department of Housing and Urban Development publishes an area median family income for every metropolitan area and non-metropolitan county each year, based on Census Bureau American Community Survey data adjusted for projected wage growth. Federal housing law then draws three lines across that figure:1GovInfo. United States Housing Act of 1937
- Low-income: below 80% of AMI, adjusted for family size.
- Very low-income: below 50% of AMI, adjusted for family size.
- Extremely low-income: the higher of 30% of AMI or the federal poverty guideline for a household of that size.
That floor on the extremely low tier matters in rural and low-wage areas where 30% of the local median would otherwise fall below poverty-level income. For 2026, the federal poverty guideline is $15,960 for a single person in the 48 contiguous states and $33,000 for a family of four.2U.S. Department of Health and Human Services. 2026 Poverty Guidelines for the 48 Contiguous States
Why the Dollar Amount Depends on Where You Live
The statute directs HUD to adjust income limits for “smaller and larger families,” so a single person always has a lower cutoff than a family of four in the same area.3Federal Register. Changes to the Methodology Used for Calculating Section 8 Income Limits Geography drives the other big swing. A household in an expensive coastal metro will face a much higher 80% AMI cutoff than the same household in a rural county, because the underlying median is higher.
HUD refreshes these numbers every fiscal year, taking survey data and inflating it using per-capita wage growth projections from the Congressional Budget Office. For FY 2025, that inflation factor came out to roughly 8% above the 2023 survey data.4HUD User. Estimated Median Family Incomes for Fiscal Year 2025 Because the figures move each year and vary by ZIP code, the only reliable way to get your number is to look it up on HUD’s income limits tool at huduser.gov.
What HUD Counts as Income
HUD does not use your take-home pay. Under 24 CFR 5.609, annual income is the gross amount received by every family member 18 or older (and the head of household or spouse regardless of age) from every source that isn’t specifically excluded.5eCFR. 24 CFR 5.609 – Annual Income That includes:
- Wages and self-employment earnings
- Social Security and disability payments
- Unemployment benefits and welfare assistance
- Child support and alimony
- Regular gifts from people outside the household
- Interest, dividends, and other investment returns
Some receipts are excluded: federal and state tax refunds, distributions from ABLE accounts, Coverdell education savings, and 529 plans; veterans’ aid-and-attendance payments; and nonrecurring income that won’t repeat next year.5eCFR. 24 CFR 5.609 – Annual Income
Deductions That Reduce Your Countable Income
Gross income isn’t the last word. HUD subtracts several mandatory deductions to reach “adjusted income,” which is the number used to set rent and, in some cases, to evaluate eligibility. For 2026, those include $550 for any elderly (head or spouse 62 or older) or disabled family, and $480 for each dependent.6HUD User. 2026 HUD Inflation-Adjusted Values Families can also deduct childcare costs required for a household member to work, look for work, or attend school, and elderly or disabled families can deduct unreimbursed medical costs above a threshold.
The Asset Cap
The Housing Opportunity Through Modernization Act added an asset ceiling on top of the income tests. For 2026, families with net assets above $105,574 cannot receive public housing or Housing Choice Voucher assistance.6HUD User. 2026 HUD Inflation-Adjusted Values Net assets cover bank accounts, stocks, and real property other than the primary residence. When net assets top $50,000 and the actual return can’t be calculated, HUD imputes a return at the passbook savings rate and adds that to income.5eCFR. 24 CFR 5.609 – Annual Income
Which Programs Serve Which Tier
The three tiers are consistent across HUD, but each program reaches a different slice of the range.
Section 8 Housing Choice Vouchers. By law, at least 75% of families newly admitted each year must be extremely low-income, at or below 30% of AMI. The remaining seats can go to families up to 80% of AMI, though in practice most voucher holders sit well below that ceiling.7HUD User. Methodology for Determining FY 2025 Section 8 Income Limits
Public housing. Public Housing Agencies generally serve very low-income and extremely low-income families under the same statutory definitions, with more local flexibility. Project-based Section 8 properties must reserve at least 40% of newly available units for extremely low-income families.7HUD User. Methodology for Determining FY 2025 Section 8 Income Limits
Low-Income Housing Tax Credit properties. LIHTC works differently: developers get tax credits, and units carry income ceilings rather than direct rental subsidies. The standard cap is 60% of AMI, with some units set aside at 50%.8HUD User. Income Limits Rents in LIHTC units are capped, not income-based, so a household at 30% of AMI pays the same rent as one at 55%.
Other Eligibility Rules Worth Knowing
Income is the main test, but a few other rules routinely disqualify applicants who assumed they were in the clear.
Citizenship and Immigration Status
Every household member must document U.S. citizenship or eligible immigration status. If some members can’t or don’t, the family can still receive assistance, but the subsidy is prorated to cover only eligible members.9eCFR. 24 CFR 5.508 – Submission of Evidence of Citizenship or Eligible Immigration Status
Criminal Background
Two criminal-history categories carry a mandatory lifetime ban from public housing and Housing Choice Vouchers: conviction for manufacturing methamphetamine on federally assisted housing premises, and being subject to a lifetime sex offender registration requirement.10HUD Exchange. Are Applicants With Felonies Banned From Public Housing Everything else is left to the local PHA, and screening policies vary widely.
Full-Time Student Households (LIHTC Only)
LIHTC has one extra rule: a unit where every household member is a full-time student is generally ineligible unless at least one member qualifies for a specific exception. Those exceptions include single parents who aren’t dependents of anyone else, married couples eligible to file jointly, members receiving TANF or certain other government assistance, former foster youth, and members enrolled in a government-funded job training program. If any household member is not a full-time student, the rule doesn’t apply. Public housing and Housing Choice Vouchers are not affected by this restriction.
Finding Your Exact Number and Applying
To translate the tiers into a dollar figure for your household, use HUD’s income limits tool at huduser.gov, which lets you enter your county and family size. Then contact your local Public Housing Agency to apply. HUD’s directory is on hud.gov, and the Public and Indian Housing Information Resource Center answers questions at 1-800-955-2232.11USAGov. Public Housing Some PHAs take applications online, others in person. Expect to bring proof of income, government-issued identification, and documentation of everyone who will live in the unit. LIHTC properties are applied for directly through the property’s management company rather than a PHA.
PHAs can adopt local preferences that move certain applicants up the waiting list, including preferences for families who are homeless, victims of domestic violence, working, elderly, or include a person with a disability.12eCFR. 24 CFR 982.207 – Waiting List Local Preferences Which preferences apply is a local choice, so a household that gets priority in one jurisdiction may not in another. Applicants with disabilities can also request reasonable accommodations for the application process itself, such as an accessible interview location or an extended paperwork deadline.