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The basic idea
Most U.S. housing assistance is limited to households below a certain income. Instead of one national number, programs use a percentage of area median income (AMI)—more precisely, HUD’s median family income (MFI) estimate for each metropolitan area and nonmetropolitan county. This lets limits reflect local incomes.
For FY 2026, HUD’s estimated national median family income is $107,900. Local medians range from well under that figure in many rural counties to far above it in high-cost metros.
The standard categories
| Term | Approximate % of AMI | Where you’ll see it |
|---|---|---|
| Extremely low income (ELI) | 30% (or the federal poverty guideline, if higher) | Voucher and public housing targeting; deep-subsidy units |
| Very low income (VLI) | 50% | Housing Choice Voucher eligibility; some tax credit and HOME units |
| — | 60% | Most common limit in Low-Income Housing Tax Credit apartments |
| Low income | 80% | Public housing and project-based Section 8 eligibility; many local programs |
| Moderate income | 80%–120% | Some state/local programs and inclusionary housing |
How HUD calculates the limits
- Median family income: HUD starts with Census American Community Survey data for each area, updated for inflation.
- Very low-income (50%) limit: HUD sets the four-person VLI limit at 50% of the area median, then adjusts it—upward in areas with unusually high housing costs relative to income and within caps so that limits don’t swing too much from year to year.
- Other limits are built from the VLI limit: the ELI limit starts from 60% of VLI (roughly 30% of median, with the poverty-guideline floor), and the low-income (80%) limit is generally 160% of VLI, capped at the U.S. median in high-income areas.
- Household-size adjustments are applied to the four-person figure.
- Year-to-year caps limit increases (for FY 2026, generally no more than 10%) and decreases (5%).
Because of the housing-cost adjustments and caps, a published “80%” limit may not equal exactly 80% of the local median.
Household size adjustments
HUD adjusts the four-person limit by these factors:
| Household size | Factor |
|---|---|
| 1 | 70% |
| 2 | 80% |
| 3 | 90% |
| 4 | 100% |
| 5 | 108% |
| 6 | 116% |
| 7 | 124% |
| 8 | 132% |
Add 8% for each person beyond eight. Limits are rounded to the nearest $50.
Example (hypothetical area): if the four-person very low-income limit is $50,000, the one-person limit is $35,000 and the six-person limit is $58,000.
Which table applies to which program
| Program | Table used |
|---|---|
| Housing Choice Vouchers, public housing, project-based Section 8 | HUD Section 8 income limits |
| Low-Income Housing Tax Credit, tax-exempt bond housing | Multifamily Tax Subsidy Project (MTSP) limits, which never decrease for existing projects under hold-harmless rules |
| HOME-funded rental and homeownership units | HOME income limits |
| USDA Rural Development rentals and home loans | USDA’s own limits (based on HUD data, with moderate-income levels) |
| State and local programs, inclusionary housing | Often HUD limits, but some states and cities publish their own AMI tables |
How to look up your limits
- Go to HUD USER → Income Limits and choose the current fiscal year.
- Select the state and county (or metro area) where the housing is located.
- Read the row for your household size. The documentation page shows ELI, VLI, and low-income limits.
- For tax credit apartments, use the MTSP table instead, which includes 50% and 60% limits.
Counting your income correctly
- Add up the gross annual income of every household member who counts under the program’s rules (for HUD programs, generally adults plus unearned income received for children).
- Use income you expect over the next 12 months (or the prior year, depending on the program and timing).
- Don’t subtract taxes, health insurance, or other payroll deductions.
- Don’t guess about exclusions—report everything and let the program decide. See Section 8 eligibility for common exclusions.
Why AMI matters for rent, too
In income-restricted housing, AMI also sets maximum rents. In tax credit apartments, for example, the maximum gross rent is 30% of the income limit for an imputed household size. That’s why a unit “affordable at 60% of AMI” may still be unaffordable to someone at 30% of AMI. See LIHTC apartments.
Frequently asked questions
What does 80% AMI mean?
It means a household’s income is at or below HUD’s “low-income” limit for its area and household size. HUD calls it 80% of median, but the actual limit is adjusted for high housing costs and capped at the national median in high-income areas, so it isn’t always exactly 80% of the local median.
Is AMI based on my household size?
Yes. HUD sets the median for a four-person household and adjusts up or down: for example, a one-person limit is 70% of the four-person limit and a six-person limit is 116%.
Is AMI based on gross or net income?
Eligibility is compared with annual gross income as the program defines it—all countable income of household members before taxes and deductions, minus program exclusions. Deductions matter later, when rent is calculated in subsidized programs.
When do income limits change?
HUD usually publishes new limits each spring. The FY 2026 limits took effect May 1, 2026 (HOME limits June 1, 2026). Properties and agencies must begin using new limits within a short period after publication.
Why do different programs give me different limits?
Programs use different HUD tables: Section 8 income limits for vouchers and public housing, MTSP limits for tax credit properties (which include hold-harmless rules), HOME limits for HOME-funded units, and some states and cities publish their own AMI tables. Always ask which table a property uses.
Sources and verification
Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.
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