The Department of Housing and Urban Development (HUD) sets income limits that determine eligibility for assisted housing programs including the Public Housing, Section 8 project-based, Section 8 Housing Choice Voucher, Section 202 housing for the elderly, and Section 811 housing for persons with disabilities programs. HUD develops income limits based on Median Family Income estimates and Fair Market Rent area definitions for each metropolitan area, parts of some metropolitan areas, and each non-metropolitan county.
Effective 03/28/2016
This system provides complete documentation of the development of the FY 2016 Income Limits (ILs) for any area of the country selected by the user. Official ILs, available in pdf and excel formats at this link, may differ slightly from those calculated in the documentation system, and should be used for ALL official purposes.
NOTE: Due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289) the data presented in this system may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Multifamily Tax Subsidy Project Income Limits
CBO CPI Forecast: https://www.cbo.gov/about/products/budget_economic_data#4
Please use the “Jan 2016” link under 10 year Economic Projections label, Use Tab “3. Fiscal Year”, Row 27 Consumer Price Index, All Urban Consumers (CPI-U) Column G (2016)
This system provides complete documentation of the development of the FY 2016 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2016 MFIs were developed using data from the 2012 American Community Survey (ACS) data.
- FY 2016 Income Limits Briefing Material in pdf
- Area Definition report in pdf
- Notice of FY 2016 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section 8 Income Limits in pdf
- Data for Section 8 Income Limits in MS EXCEL
- Notice of FY 2016 Income Limits for the Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in pdf
- Data for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in MS
EXCEL
Access Individual Median Family Income Areas
- Notice on Median Family Incomes for FY 2016, State Median Family Incomes in pdf
- To view the FY 2016 State 30%, 50% and 80% Income Limits (based on median family incomes without adjustments made to HUD Income Limits), please click here.
These are 30% Income Limits, calculated with high and low housing cost adjustments, state non-metropolitan minimum but without the increases for poverty guidelines in the Section 8 Extremely Low Family Incomes
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
This system provides complete documentation of the development of the FY 2015 Income Limits (ILs) for any area of the country selected by the user.
NOTE: Due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289) the data presented in this system may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Multifamily Tax Subsidy Project Income Limits
This system provides complete documentation of the development of the FY 2015 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2015 MFIs were developed using data from the 2011 American Community Survey (ACS) data.
Effective 03/06/2015
Revised Income Limits for San Jose-Sunnyvale-Santa Clara, CA were posted on March 10, 2015.
- FY 2015 Income Limits Briefing Material in pdf
- Area Definition report in pdf
- Notice of FY 2015 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section 8 Income Limits in pdf
- Data for Section 8 Income Limits in MS EXCEL
- Notice of FY 2015 Income Limits for the Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in pdf and MS WORD
- Data for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in MS EXCEL
Access Individual Median Family Income Areas
- Notice on Median Family Incomes for FY 2015, State Median Family Incomes in pdf
- To view the FY 2015 State 30%, 50% and 80% Income Limits (based on median family incomes without adjustments made to HUD Income Limits), please click here.
These are 30% Income Limits, calculated with high and low housing cost adjustments, state non-metropolitan minimum but without the increases for poverty guidelines in the Section 8 Extremely Low Family Incomes
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
Revised for Extremely Low Income Limits, effective 07/01/2014
This system provides complete documentation of the development of the FY 2014 Income Limits (ILs) for any area of the country selected by the user.
Revised for Extremely Low Income Limits, effective 07/01/2014NOTE: Due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289) the data presented in this system may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Multifamily Tax Subsidy Project Income Limits
This system provides complete documentation of the development of the FY 2014 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2014 MFIs were developed using data from the 2011 American Community Survey (ACS) data.
Effective 12/18/2013.
Revised for Extremely Low Income Limits, effective 07/01/2014.
Effective 07/01/2014
- FY 2014 Income Limits Briefing Material in pdf
Revised for Extremely Low Income Limits, effective 07/01/2014 - Area Definition report
- Notice of FY 2014 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section 8 Income Limits in pdf and MS WORD
Revised for Extremely Low Income Limits, effective 07/01/2014
- Data for Section 8 Income Limits in MS
EXCEL
Revised for Extremely Low Income Limits, effective 07/01/2014 - Notice of FY 2014 Income Limits for the Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in pdf and MS WORD
- Data for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in MS
EXCEL
- Notice on Median Family Incomes for FY 2014, State Median Family Incomes in pdf
- To view the FY 2014 State Extremely Low (30%), Very Low (50%) and Low (80%) Income Limits, please click here.
Revised for Extremely Low Income Limits, effective 07/01/2014
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
The effective date is December 11, 2012.
This system provides complete documentation of the development of the FY 2013 Income Limits (ILs) for any area of the country selected by the user. As in FY2012, Income Limits for the Section 8 program are no longer be subject to HUD's Hold Harmless Policy. Please refer to the following Federal Register Notice, available here, for more information.
NOTE: Due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289) the data presented in this system may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Multifamily Tax Subsidy Project Income Limits
This system provides complete documentation of the development of the FY 2013 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2013 MFIs were developed using 5-year data from the 2010 American Community Survey (ACS) data.
Effective 12/11/2012.
Revised FY 2013 Data Published 12/11/2012, Supersedes Medians and Income Limits Posted on 12/4/2012 for All Areas.
- FY 2013 Income Limits Briefing Material in pdf
- Area Definition report
- Notice of FY 2013 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section 8 Income Limits in pdf and MS WORD
- Data for Section 8 Income Limits in MS
EXCEL
- Notice of FY 2013 Income Limits for the Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in pdf and MS WORD
- Data for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in MS
EXCEL
- Notice on Median Family Incomes for FY 2013, State Median Family Incomes in pdf
- To view the FY 2013 State Extremely Low (30%), Very Low (50%) and Low (80%) Income Limits, please click here.
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
This system provides complete documentation of the development of the FY 2012 Income Limits (ILs) for any area of the country selected by the user. As in FY2011, Income Limits for the Section 8 program are no longer be subject to HUD's Hold Harmless Policy. Please refer to the following Federal Register Notice, available here, for more information.
NOTE: Due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289) the data presented in this system may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Multifamily Tax Subsidy Project Income Limits
This system provides complete documentation of the development of the FY 2012 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2012 MFIs were developed using 5-year data from the 2009 American Community Survey (ACS) data.
- FY 2012 Income Limits Briefing Material in pdf
- Area Definition report
- Notice of FY 2012 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section 8 Income Limits in pdf and MS WORD
- Data for Section 8 Income Limits in MS
EXCEL
- Notice of FY 2012 Income Limits for the Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in pdf and MS WORD
- Data for Section 221(d)(3) BMIR, Section 235, and Section 236 Income Limits in MS
EXCEL
- Notice on Median Family Incomes for FY 2012,
State Median Family Incomes in pdf
- To view the FY 2012 State Extremely Low (30%), Very Low (50%) and Low (80%) Income Limits, please click here.
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
NOTE: Due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289) the data presented in this system may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Multifamily Tax Subsidy Project Income Limits
This system provides complete documentation of the development of the FY 2011 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2011 MFIs were developed using 5-year data from the 2009 American Community Survey (ACS) data.
Income Limits for New York, NY HMFA were updated on June 1, 2011 to correct an error.
The following areas were revised on June 30, 2011:
California – Oakland-Fremont; Oxnard-Thousand Oaks-Ventura; Riverside-San Bernardino-Ontario; San Diego-Carlsbad-San Marcos; Santa Barbara-Santa Maria-Goleta; Santa Rosa- Petaluma.
Colorado – Pitkin County, CO.
Florida – West Palm Beach-Boca Raton
Massachusetts – Dukes County; Nantucket County.
New York – Nassau-Suffolk.
Puerto Rico – Arecibo; Barranquitas-Aibonito-Quebradillas; Fajardo; Mayaguez; Yauco; Puerto Rico HUD Nonmetro area.
- Notice on Estimated Median Family Income For FY 2011, State Median Family Incomes in pdf
- FY 2011 Income Limits Briefing Material in pdf
- Income Limits Area Definition in pdf
- Transmittal Notice of FY 2011 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section 8 Program in pdf and MS WORD
- Data for Section 8 Income Limits in MS
EXCEL
- Transmittal Notice of FY 2011 Income Limits for the Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf and MS WORD
- Data for Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in MS
EXCEL
- To view the FY 2011 State Extremely Low (30%), Very Low (50%) and Low (80%) Income Limits, please click here.
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
- Incomes limits have fallen in my area but haven’t done so in the past, why did this happen?
- Given the recession that our area has experienced in recent years, why have income limits increased?
- Why does my very low income limit not equal 50% of my median family income (MFI) (or my low-income limit not equal 80% of my MFI)?
- How does HUD calculate median family incomes?
- Why do area definitions change for MFI and income limits?
- What is the relationship between Fair Market Rent areas and Income Limit areas?
- What does the term “HMFA” mean?
- How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
- What are Multifamily Tax Subsidy Projects?
- How can 60 percent income limits be calculated?
- How are maximum rents for Low Income Housing Tax Credit projects computed from the very low income limits?
- What is the national non-metro median to be used to calculate the floor on rural LIHTC rents?
- What is are the income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005 (also based on the non-metropolitan median income of $51,600)?
- How does HUD calculate median family incomes?
1. Incomes limits have fallen in my area but haven’t done so in the past, why did this happen?
A: Beginning with FY 2010 Income Limits, HUD eliminated its long standing “hold harmless” policy. HUD’s “hold harmless” policy maintained Section 8 income limits for certain areas at previously published levels when reductions would otherwise have resulted from changes in median family income (MFI) estimates, housing cost adjustment data, MFI update methodology, income limit methodology, or metropolitan area definitions. HUD eliminated the “hold harmless” policy to ensure better alignment between an area’s most recent income experience and the income thresholds for housing assistance.
Furthermore, in an effort to minimize disruptions in the operation of the section 8 Housing Choice Voucher program, HUD instituted maximum thresholds for the amount income limits can change from year to year. The new policy limits annual increases in income limits to 5 percent or twice the change in the national median family income, whichever is greater. For areas where income limits are decreasing, HUD limits the decrease to no more than 5 percent per year.
HOME Investment Partnerships program (HOME) rents, based in part on HUD Section 8 Income Limits, will continue to be held harmless and income limits for rural housing programs will continue their current hold-harmless policy at the request of the Rural Housing Service, because these limits are based on area definitions and program rules specified by the Rural Housing Service of the Department of Agriculture.
back to top
2. Given the recession that our area has experienced in recent years, why have income limits increased?
A: Although HUD uses the most recent data available concerning local area incomes, there is still a lag between when the data are collected and when the data are available for use. For example, FY 2011 Income Limits are calculated using 2005-2009 5-year American Community Survey (ACS) data. The effects of the latest recession on local area incomes are most likely to be detected in 2009, but this represents only 20 percent of the survey sample. In areas where there is sufficient sample for a one-year update, the 2009 data does generally show a decline in incomes.
back to top
3. Why does my very low income limit not equal 50% of my median family income (MFI) (or my low-income limit not equal 80% of my MFI)?
A: There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high-income areas. These exceptions are detailed in the FY 2011 Income Limits Briefing Material report, at this site.
Please review this report and pay special attention to Attachments 3 and 4 that list the exceptions for metropolitan areas. Please also note that Tables 1 and 2 (beginning on page 7) show that most nonmetropolitan area income limits are based on state nonmetropolitan area medians.
For further information on the exact adjustments made to any area of the country, please see our FY 2011 Income Limits Documentation System. The documentation system is available at: https://www.huduser.gov/portal/datasets/il/il11/index_il2011.html. Once the area in question is selected, a summary of the area’s MFI, Very Low-Income, Extremely Low-Income, and Low-Income Limits are displayed. Detailed calculations are obtained by selecting the relevant links.
back to top
Median Family Incomes
4. How does HUD calculate median family incomes?
A: To calculate the FY 2011 MFI estimates, HUD incorporates 2005-2009 5-year ACS data. Specifically, for each metropolitan area, subarea of a metropolitan and non-metropolitan county, 5-year ACS data is used as the new basis for calculating MFI estimates. HUD is incorporating the 5-year data in this way to eliminate the reliance on the data collected during the 2000 Decennial Census as it is more than a decade old. In areas where there is a valid 1-year ACS survey MFI result, HUD endeavors to use this data as well to take advantage of more recent survey information. By using both the 5-year data and the 1-year data, where available, HUD is establishing a new basis for median family income estimates while also capturing the most recent information available.
For additional details concerning the use of the ACS in HUD’s calculations of MFI, please see our FY 2011 Income Limits Briefing Materials, Attachment 2 at the following web address: https://www.huduser.gov/portal/datasets/il/il11/IncomeLimitsBriefingMaterial_FY11_v2.pdf. Additionally, full documentation of all calculations for Median Family Income and Income Limits is available in our FY 2011 Income Limits Documentation System. This system is available at this web address: https://www.huduser.gov/portal/datasets/il/il11/index_il2011.html.
back to top
Area Definitions
5. Why do area definitions change for MFI and income limits?
A: HUD follows Office of Management and Budget (OMB) definitions of metropolitan areas with some exceptions. In 2006, when HUD implemented the widespread area definition changes OMB made based on the 2000 Decennial Census, exceptions were made to the new OMB area definitions when Fair Market Rent (FMR) or MFI changes for new areas were greater than five percent. HUD created exception subareas, called HUD Metro FMR Areas, which continue to exist today.
Since 2006, OMB updated its metropolitan area definitions based on updated population counts and updated commuting data collected by the Bureau of the Census. For the FY 2011 Income Limits OMB made no changes and so there are no changes in area definitions, compared with the area definition used for FY 2010 Income Limits. For a complete description of the area definitions a used in the FY 2011Income Limits, please review the FY 2010 Income Limits Area Definitions report: https://www.huduser.gov/portal/datasets/il/il11/area_definitions.pdf.
back to top
6. What is the relationship between Fair Market Rent areas and Income Limit areas?
A: With minor exceptions, Fair Market Rent areas and Income Limit areas are identical. HUD uses FMR areas in calculating income limits because FMRs are needed for the calculation of some income limits; specifically to determine high and low housing cost adjustments. Also, the two sets of area definitions are linked in statutory history. The two exceptions to the similarity between Fair Market Rent areas and Income Limit areas are Columbia, MD and Rockland County, NY. Due to historical precedent, independent FMRs are calculated for Columbia, MD, but income limits are not. By statute, income limits are calculated for Rockland County, NY while separate FMRs are not. Furthermore, depending on when OMB releases new area definitions, HUD may be able to incorporate these changes into income limits before they are implemented into FMRs.
back to top
7. What does the term “HMFA” mean?
A: HUD Metro FMR Area. This term indicates that only a portion of the OMB-defined core-based statistical area (CBSA) is in the area to which the income limits (or FMRs) apply. HUD is required by OMB to alter the name of metropolitan geographic entities it derives from the CBSAs when the geography is not the same as that established by OMB.
back to top
8. How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
A: The FY 2011 Income Limits Area Definitions report places a “CBSA” in front of those areas where all counties in the CBSA are used in the calculation; an “SA” is placed in front of those areas where only the counties or towns of the subarea are used. Note that HUD Metro FMR Areas (HMFAs) are not the same as CBSAs, but that an HMFA’s income limits may be based on CBSA data. To determine if income estimates are based on the subarea or CBSA income, please review the FY 2011 Income Limits Area Definitions report at: https://www.huduser.gov/portal/datasets/il/il11/area_definitions.pdf
back to top
Multifamily Tax Subsidy Projects (MTSPs) (otherwise known as Low-Income Tax Credit projects (LIHTC))
9. What are Multifamily Tax Subsidy Projects?
A: Multifamily Tax Subsidy Projects (MTSPs), a term coined by HUD, are all Low Income Housing Tax Subsidy projects under Section 42 of the I.R.S. Code and multifamily projects funded by tax-exempt bonds under Section 142. These projects may have special income limits so HUD has published them on a separate webpage. If you are a tax credit developer or resident in an MTSP, please go to the following site to determine what the appropriate income limits are: https://www.huduser.gov/portal/datasets/mtsp.html.
back to top
10. How can 60 percent income limits be calculated?
A: For the Low Income Housing Tax Credit program, users should refer to the FY 2011 Multifamily Tax Subsidy Project income limits available at https://www.huduser.gov/portal/datasets/mtsp.html. The formula used to compute these income limits is as follows: take 120 percent of the Very Low-Income Limit. Do not calculate income limit percentages based on a direct arithmetic relationship with the MFI; there are too many exceptions made to the arithmetic rule in computing income limits.
back to top
11. How are maximum rents for Low Income Housing Tax Credit projects computed from the very low income limits?
A: Please consult with the state housing financing agency that governs the tax credit project in question for a determination of official maximum rental rates. A list of state housing finance agencies can be found http://lihtc.huduser.gov/agency_list.htm. The Low Income Housing Tax Credit program is a U.S. Treasury Department program; therefore, HUD has no official authority over setting maximum rental rates. The following table is included for informational purposes only.
The imputed income limitation (as defined in 26USC Sec. 42(g)(2)) is 60 percent of the MFI. A rent may not exceed 30 percent of this imputed income limitation under 26USC Sec. 42(g)(2). Unit rents by number of bedrooms are derived from Very Low Income Limits (VLILs) for the different household sizes according to the following table:
LIHTC Maximum Rent Derivation from HUD Very Low Income Limits (VLILs)
Unit Size |
0 Bedroom |
1 Bedroom |
2 Bedroom |
3 Bedroom |
4 Bedroom |
50% MFI Unit |
1-Person VLIL |
(1-Person VLIL + 2-Person VLIL)/2 |
3-Person VLIL |
(4-Person VLIL + 5-Person VLIL)/2 |
6-Person VLIL |
60% MFI Unit |
120% of 1-Person VLIL |
120 % of [(1-Person VLIL + 2-Person VLIL)/2] |
120% of 3-Person VLIL |
120 % of [(4-Person VLIL + 5-Person VLIL)/2] |
120 % of 6-Person VLIL |
NOTE: Maximum rents for larger units are set by assuming an additional 1.5 persons per bedroom.
back to top
12. What is the national non-metro median to be used to calculate the floor on rural LIHTC rents?
A: Section 3004 of the Housing and Economic Recovery Act (HERA) specifies that any project for residential rental property located in a rural area (as defined in section 520 of the Housing Act of 1949) use the maximum of the area median gross income or the national non-metropolitan median income. The FY 2011 non-metropolitan median income is: $51,600.
back to top
GO Zones:
13. 13. What is are the income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005 (also based on the non-metropolitan median income of $51,600)?
A: The 1-8 Person 50% Income Limits are as follows:
1 Person |
2 Person |
3 Person |
4 Person |
5 Person |
6 Person |
7 Person |
8 Person |
$18,050 |
$20,650 |
$23,200 |
$25,800 |
$27,850 |
$29,950 |
$32,000 |
$34,050 |
back to top
The effective date is May 14, 2010.
This system provides complete documentation of the development of the FY 2010 Income Limits (ILs) for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a summary of how the final FY 2010 ILs were updated and developed starting with the 2000 Census benchmark and including update factors from 2008 American Community Survey (ACS) data. The tables on the summary page include links to complete detail on how the data were developed. New for FY2010, Income Limits for the Section 8 program will no longer be subject to HUD's Hold Harmless Policy. Please refer to the following Federal Register Notice, available at , for more information.
NOTE: Due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289) the data presented in this system may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Multifamily Tax Subsidy Project Income Limits
This system provides complete documentation of the development of the FY 2010 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2010 MFIs were developed starting with the 2000 Census benchmark and including update factors calculated from 2008 American Community Survey (ACS) data.
- Notice on Estimated Median Family Income For FY 2010,
State Median Family Incomes in pdf - Tables for 1999 and Estimated FY 2010 Decile Distributions by Area in pdf and MS WORD
- FY 2010 Income Limits Briefing Material in pdf
- Income Limits Area Definition in pdf
- Transmittal Notice of FY 2010 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section Program in pdf and MS WORD
- Data for Section 8 Income Limits in MS
EXCEL
- Transmittal Notice of FY 2010 Income Limits for the Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235, and Section 236 Programs in pdf and MS WORD
- To view the FY 2010 State Extremely Low (30%), Very Low (50%) and Low (80%) Income Limits, please click here.
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
- Incomes limits have fallen in my area but haven’t done so in the past, why did this happen?
- Given the recession that our area has experienced in recent years, why have income limits increased?
- Why does my very low income limit not equal 50% of my median family income (MFI) (or my low-income limit not equal 80% of my MFI)?
- How does HUD update median family incomes?
- Why do area definitions change for the income limits and median family income estimates?
- What is the relationship between Fair Market Rent areas and Income Limit areas?
- What does the term "HMFA" mean?
- How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
- What are Multifamily Tax Subsidy Projects?
- How can 60 percent income limits be calculated?
- How are Low Income Housing Tax Credit maximum rents computed from the very low income limits?
- What is the national non-metro median to be used to calculate the floor on rural LIHTC rents?
- What is are the income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005 (also based on the non-metropolitan median income of $51,600)?
1. Incomes limits have fallen in my area but haven’t done so in the past, why did this happen?
A: Beginning with FY 2010 Income Limits, HUD has eliminated its long standing "hold harmless" policy. HUD’s "hold harmless" policy maintained Section 8 income limits for certain areas at previously published levels when reductions would otherwise have resulted from changes in median family income estimates, housing cost adjustment data, median family income update methodology, income limit methodology, or metropolitan area definitions. HUD eliminated the "hold harmless" policy to ensure better alignment between an area’s most recent income experience and the income thresholds for housing assistance.
Furthermore, in an effort to minimize disruptions in the operation of the section 8 Housing Choice Voucher program, HUD has instituted maximum thresholds for the amount income limits can change from year to year. The new policy limits annual increases in income limits to 5 percent or twice the change in the national median family income, whichever is greater. For areas where income limits are decreasing, HUD limits the decrease to no more than 5 percent per year.
Notice of this change can be found in the Federal Register notices of September 14, 2009, and October 7, 2009, that solicited public comments on HUD’s proposal to discontinue its "hold harmless" policy and the Federal Register notice of May 17, 2010 1 discussing the submitted comments. HOME Investment Partnerships program (HOME) rents, based in part on HUD Section 8 Income Limits, will continue to be held harmless and income limits for rural housing programs will continue their current hold-harmless policy at the request of the Rural Housing Service, because these limits are based on area definitions and program rules specified by the Rural Housing Service of the Department of Agriculture.
1 Subsequent to the publication of the Federal Register Notice announcing the discontinuation of the "hold-harmless" policy, HUD received a request to hold rents harmless for the FDIC programs. HUD has complied with this request and has issued tables to FDIC with rents that do not decline.
back to top
2. Given the recession that our area has experienced in recent years, why have income limits increased?
A: Although HUD uses the most recent data available concerning local area incomes, there is still a lag between when the data are collected and when the data are available for use. For example, FY2010 Income Limits are calculated using 2006-2008 3-year American Community Survey (ACS) data. These data were collected between 2005 and 2008. The effects of the latest recession on local area incomes are most likely to be detected in subsequent ACS years.
back to top
3. Why does my very low income limit not equal 50% of my median family income (MFI) (or my low-income limit not equal 80% of my MFI)?
A: There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high-income areas. These exceptions are detailed in the FY 2010 Income Limits Briefing Material report, at the following site: https://www.huduser.gov/portal/datasets/il/il10/IncomeLimitsBriefingMaterial_FY10.pdf. Please review this report and pay special attention to Attachments 3 and 4 that list the exceptions for metropolitan areas. Please also note that Tables 1 and 2 (beginning on page 7) show that most nonmetropolitan area income limits are based on state nonmetropolitan area medians.
For further information on the exact adjustments made to any area of the country, please see our FY2010 Income Limits Documentation System. The documentation system is available at: https://www.huduser.gov/portal/datasets/il/index_il2010.html. Once the area in question is selected, a summary of the area’s median family income estimate, Very Low-Income, Extremely Low-Income, and Low-Income Limits are displayed. Detailed calculations are obtained by selecting the relevant links.
Median Family Incomes
4. How does HUD update median family incomes?
A: The FY 2010 MFI estimation relies on three-year American Community Survey (ACS) data (collected for 2006, 2007 and 2008). The manner in which the ACS data are used depends on the type of data available, which differs by place size. Local ACS MFI estimates are available for areas with populations of 20,000 or more, but the statistical reliability of these estimates differs. When local MFI estimates are available, HUD MFI estimates are based partly on local ACS estimates and partly on state-level ACS estimates. The higher the statistical reliability of local estimates, the more heavily they are used. Local ACS MFI estimates are used in inverse proportion to the size of their margins of error ratios (the numbers computed by adding and subtracting the published margins of error ratios, or MoERs, from the median family income estimates form the "90 percent confidence intervals" for the estimates. There is a 90 percent probability that any random sample of the same size from the population will yield an estimate of the median family income in this range).
In practice, estimates for areas with small MoERs are almost entirely based on local ACS estimates but, where MoERs are large, state-level estimates more heavily influence results. For areas without local ACS estimates, update factors are generated using only state-level 2000 Census to 2008 ACS MFI change. All estimates are then updated from December 2008 to April 2010 using a trend factor of 3.0 percent, which reflects the average annual change in median income from 2000 to 2008.
For additional details concerning the use of the ACS in HUD’s calculations of Median Family Income, please see our FY2010 Income Limits Briefing Materials, Attachment 2 which can be found at the following web address: https://www.huduser.gov/datasets/il/il10. Additionally, full documentation of all calculations for Median Family Income and Income Limits is available in our FY2010 Income Limits Documentation System. This system is available at this web address: https://www.huduser.gov/portal/datasets/il/index_il2010.html
back to top
Area Definitions:
5. Why do area definitions change for the income limits and median family income estimates?
A: HUD follows Office of Management and Budget (OMB) definitions of metropolitan areas with some exceptions. In 2006, when HUD implemented the widespread area definition changes OMB made based on the 2000 Decennial Census, exceptions were made to the new OMB area definitions when Fair Market Rent (FMR) or MFI changes for new areas were greater than five percent. HUD created exception subareas, called HUD Metro FMR Areas, which continue to exist today. The FMR and MFI relationships continue to be evaluated and these exception areas may go away.
In addition, OMB makes annual area definitional changes that include name changes for primary cities in metropolitan areas, and new subareas of core-based statistical areas, as well as the creation of new nonmetropolitan counties, the splitting of some metropolitan areas and the inclusion of nonmetropolitan counties in metropolitan areas. OMB updates its metropolitan area definitions periodically based on updated population counts and updated commuting data collected by the Bureau of the Census. Changes to HUD geographic areas (Fair Market Rent areas and Section 8 Income Limit areas) are due to these changes published by OMB. (http://www.whitehouse.gov/omb/assets/bulletins/b10-02.pdf). For a complete description of the area definitions a used in the FY 2010 Income Limits, please review the FY 2010 Income Limits Area Definitions report: https://www.huduser.gov/portal/datasets/il/il10/index.html
6. What is the relationship between Fair Market Rent areas and Income Limit areas?
A: With minor exceptions, Fair Market Rent areas and Income Limit areas are identical. HUD uses FMR areas in calculating income limits because FMRs are needed for the calculation of some income limits; specifically to determine high and low housing cost adjustments. Also, the two sets of area definitions are linked in statutory history. The two exceptions to the similarity between Fair Market Rent areas and Income Limit areas are Columbia, MD and Rockland NY. Due to a grandfather clause, independent FMRs are calculated for Columbia, MD, but income limits are not. By statute, income limits are calculated for Rockland County, NY while separate FMRs are not. Furthermore, depending on when OMB releases new area definitions, HUD may be able to incorporate these changes into income limits before they are implemented into FMRs.
back to top
7. What does the term "HMFA" mean?
A: HUD Metro FMR Area. This term indicates that only a portion of the OMB-defined core-based statistical area (CBSA) is in the area to which the income limits (or FMRs) apply. HUD is required by OMB to alter the name of metropolitan geographic entities it derives from the CBSAs when the geography is not the same as that established by OMB. See OMB’s bulletin establishing CBSA definitions for FY 2010 at http://www.whitehouse.gov/omb/assets/bulletins/b10-02.pdf.
back to top
8. How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
A: The FY 2010 Income Limits Area Definitions report places a "CBSA" in front of those areas where all counties in the CBSA are used in the calculation; an "SA" is placed in front of those areas where only the counties or towns of the subarea are used. Note that HUD Metro FMR Areas (HMFAs) are not the same as CBSAs, but that an HMFA’s income limits may be based on CBSA data. To determine if income estimates are based on the subarea or CBSA income, please review the FY 2010 Income Limits Area Definitions report at: https://www.huduser.gov/portal/datasets/il/il10/index.html
back to top
Multifamily Tax Subsidy Projects (MTSPs) (otherwise known as Low-Income Tax Credit projects (LIHTC))
9. What are Multifamily Tax Subsidy Projects?
A: Multifamily Tax Subsidy Projects (MTSPs), a term coined by HUD, are all Low Income Housing Tax Subsidy projects under Section 42 of the I.R.S. Code and multifamily projects funded by tax-exempt bonds under Section 142. These projects may have special income limits so HUD has published them on a separate webpage. If you are a tax credit developer or resident in an MTSP, please go to the following site to determine what the appropriate income limits are: https://www.huduser.gov/portal/datasets/mtsp.html
back to top
10. How can 60 percent income limits be calculated?
A: For the Low Income Housing Tax Credit program, users should refer to the FY2010 Multifamily Tax Subsidy Project income limits available at https://www.huduser.gov/portal/datasets/mtsp.html. The formula used to compute these income limits is as follows: take 120 percent of the Very Low-Income Limit. Do not calculate income limit percentages based on a direct arithmetic relationship with the MFI; there are too many exceptions made to the arithmetic rule in computing income limits.
back to top
11. How are Low Income Housing Tax Credit maximum rents computed from the very low income limits?
A: Please consult with the state housing financing agency governing the tax credit project in question for official maximum rental rates. A list of state housing finance agencies can be found at http://lihtc.huduser.gov/agency_list.htm. The Low Income Housing Tax Credit program is a U.S. Treasury Department program; therefore, HUD has no official authority over setting maximum rental rates. The following table is included for informational purposes only.
The imputed income limitation (as defined in 26USC Sec. 42(g)(2)) is 60 percent of the MFI. A rent may not exceed 30 percent of this imputed income limitation under 26USC Sec. 42(g)(2). Unit rents by number of bedrooms are derived from Very Low Income Limits (VLILs) for the different household sizes according to the following table:
LIHTC Maximum Rent Derivation from HUD Very Low Income Limits (VLILs) | |||||
Unit Size | 0 Bedroom | 1 Bedroom | 2 Bedroom | 3 Bedroom | 4 Bedroom |
50% MFI Unit Maximum Monthly Rent is 1/12 of 30% of: | 1-Person VLIL | (1-Person VLIL + 2-Person VLIL)/2 | 3-Person VLIL | (4-Person VLIL + 5-Person VLIL)/2 | 6-Person VLIL |
60% MFI Unit Maximum Monthly Rent is 1/12 of 30% of: | 120% of 1-Person VLIL | 120 % of [(1-Person VLIL + 2-Person VLIL)/2] | 120% of 3-Person VLIL | 120 % of [(4-Person VLIL + 5-Person VLIL)/2] | 120 % of 6-Person VLIL |
NOTE: Maximum rents for larger units are set by assuming an additional 1.5 persons per bedroom. |
back to top
12. What is the national non-metro median to be used to calculate the floor on rural LIHTC rents?
A: Section 3004 of the Housing and Economic Recovery Act (HERA) specifies that any project for residential rental property located in a rural area (as defined in section 520 of the Housing Act of 1949) use the maximum of the area median gross income or the national non-metropolitan median income. The FY 2010 non-metropolitan median income is: $51,600.
back to top
GO Zones:
13. What is are the income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005 (also based on the non-metropolitan median income of $51,600)?
A: The 1-8 Person 50% Income Limits are as follows:
1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person | 7 Person | 8 Person |
$18,050 | $20,650 | $23,200 | $25,800 | $27,850 | $29,950 | $32,000 | $34,050 |
back to top
The effective date is March 19, 2009.
This system provides complete documentation of the development of the FY 2009 Section 8 Income Limits for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a summary of the final FY 2009 Median Family Income estimate along with final 1-8 Person Income Limits for Very-Low Income (50%) Limits, Extremely-Low Income (30%) Limits, and Low Income (80%) Limits. Links on the summary page provide detailed information regarding the methodology used to update and develop FY 2009 MFIs and ILs starting with the 2000 Census benchmark and including update factors from American Community Survey (ACS).
This system provides complete documentation of the development of the FY 2009 Section 8 Median Family Income estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2009 MFIs were developed starting with the 2000 Census benchmark and including update factors calculated from American Community Survey (ACS) data.
Effective March 19, 2009
- Transmittal Notice on Estimated Median Family Incomes
for FY 2009,
State Median Family Incomes in pdf - Tables for 1999 and Estimated FY2009 Decile Distributions by Area in pdf and MS WORD
- FY 2009 Income Limits Briefing Material in pdf
- Income Limit Area Definitions in pdf
- Transmittal Notice of FY 2009 Income Limits for the Public Housing and Section 8 Programs in pdf
- Tables for Section 8 Programs in pdf and MS WORD
- Data for Section 8 Income Limits in MS EXCEL
- Transmittal Notice of FY 2009 Income Limits for the Section 221(d)(3) BMIR, Section 235 and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235 and Section 236 Programs in pdf and MS WORD
- To view the FY2009 State 30%, Very Low (50%) and Low (80%) Income Limits, please click here.
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
Some of the information in this section is available for downloading in the Adobe Portable Document Format (PDF) which allows the document to be downloaded, viewed, and printed with all of its original formatting and graphics. To view files in this format you must first download a copy of the Adobe Acrobat Reader and follow the instructions for installation.
- Incomes have fallen in my area, why haven't income limits?
- Income Limits in my area have been the same for many years. Why is that?
- Incomes in my area have gone up in recent years, why hasn’t the income limit for our area gone up?
- Why does my very low income limit not equal 50% of my median family income (MFI) (or my low-income limit not equal 80% of my MFI)?
- How are median family incomes updated?
- Why do area definitions change for the income limits and median family income estimates?
- What is the relationship between Fair Market Rent areas and Income Limit areas?
- What does the term "HMFA" mean?
- How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
- What are Multifamily Tax Subsidy Projects?
- How can 60 percent income limits be calculated?
- How are Low Income Housing Tax Credit maximum rents computed from the very low income limits?
- What is the national non-metro median to be used to calculate the floor on rural LIHTC rents?
- What is are the income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005 (also based on the non-metropolitan median income of $51,300)?
1. Incomes have fallen in my area, why haven't income limits?
A: There are two reasons income limits may not reflect your experience with incomes in your area. First, income limits are not allowed to decline, so even if the underlying data shows a decrease (in the median family income) income limits would not go down; they would stay at the same level they were at the previous year. This policy, which HUD calls "hold harmless" is going to be eliminated next year, so income limits will show declines in the future.
Second, the lack of timely family income data prevents HUD from capturing recent declines in income. HUD uses the most current income data available to update its median family incomes, the basis for income limits. FY2009 Income Limits are based on American Community Survey data collected in 2007 when the economy was in much better shape and unemployment was much lower.
back to top
2. Income Limits in my area have been the same for many years. Why is that?
A: Either your income limit has been "held harmless" sometime in the past or your incomes are currently falling. Incomes in your area may have been higher sometime in the past; your current income limit reflects those higher incomes. Under the "hold harmless" policy, your income limit will not increase until the incomes in your area exceed their historical high.
back to top
3. Incomes in my area have gone up in recent years, why hasn’t the income limit for our area gone up?
A: Please see the answer to question 1.
back to top
4. Why does my very low income limit not equal 50% of my median family income (MFI) (or my low-income limit not equal 80% of my MFI)?
A: There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high-income areas. These exceptions are detailed in the FY2009 Income Limits Briefing Material report, at the following site: https://www.huduser.gov/datasets/il/il09/IncomeLimitsBriefingMaterial_FY09.pdf. Please review this report and pay special attention to Attachments 3 and 4 that list the exceptions for metropolitan areas. Please also note that Tables 1 and 2 (beginning on page 8) show that most nonmetropolitan area income limits are based on state nonmetropolitan area medians.
For further information on the exact adjustments made to any area of the country, please see our FY2009 Income Limits Documentation System. The documentation system is available at: https://www.huduser.gov/datasets/il/index_il2009.html. Once the area in question is selected, a summary of the area’s median family income estimate, Very Low-Income, Extremely Low-Income, and Low-Income Limits are displayed. Detailed calculations are obtained by selecting the relevant links.
back to top
Median Family Incomes
5. How are median family incomes updated?
A: The FY 2009 MFI estimation relies on three-year American Community Survey (ACS) data (collected in 2005, 2006 and 2007). The manner in which the ACS data are used depends on the type of data available, which differs by place size. Local ACS MFI estimates are available for areas with populations of 20,000 or more, but the statistical reliability of these estimates differs. When local MFI estimates are available, HUD MFI estimates are based partly on local ACS estimates and partly on state-level ACS estimates. The higher the statistical reliability of local estimates, the more heavily they are used. Local ACS MFI estimates are used in inverse proportion to the size of their margins of error ratios (the numbers computed by adding and subtracting the published margins of error ratios, or MoERs, from the median family income estimates form the "90 percent confidence intervals" for the estimates. There is a 90 percent probability that any random sample of the same size from the population will yield an estimate of the median family income in this range).
In practice, estimates for areas with small MoERs are almost entirely based on local ACS estimates but, where MoERs are large, state-level estimates more heavily influence results. For areas without local ACS estimates, update factors are generated using only state-level 2000 Census to 2007 ACS MFI change. All estimates are then updated from December 2007 to April 2009 using a trend factor of 3.0 percent, which reflects the average annual change in median income from 2000 to 2007.
For additional details concerning the use of the ACS in HUD’s calculations of Median Family Income, please see our FY2009 Income Limits Briefing Materials, Attachment 2 which can be found at the following web address: https://www.huduser.gov/datasets/il/il09. Additionally, full documentation of all calculations for Median Family Income and Income Limits is available in our FY2009 Income Limits Documentation System. This system is available at this web address: https://www.huduser.gov/datasets/il/index_il2009.html.
back to top
Area Definitions:
6. Why do area definitions change for the income limits and median family income estimates?
A: HUD follows Office of Management and Budget (OMB) definitions of metropolitan areas with some exceptions. (a discussion of HUD exceptions to OMB metropolitan areas can be found at:) OMB updates its metropolitan area definitions periodically based on updated population counts and updated commuting data collected by the Bureau of the Census. Changes to HUD geographic areas (Fair Market Rent areas and Section 8 Income Limit areas) are due to these changes published by OMB. (http://www.whitehouse.gov/omb/bulletins/fy2008/b08-01.pdf). For a complete description of the area definitions a used in the FY 2009 Income Limits, please review the FY 2009 Income Limits Area Definitions report: https://www.huduser.gov/datasets/il/il09/index.html.
back to top
7. What is the relationship between Fair Market Rent areas and Income Limit areas?
A: With two exceptions, Fair Market Rent areas and Income Limit areas are identical. HUD uses FMR areas in calculating income limits because FMRs are needed for the calculation of some income limits; specifically to determine high and low housing cost adjustments. Also, the two sets of area definitions are linked in statutory history. The two exceptions to the similarity between Fair Market Rent areas and Income Limit areas are Columbia, MD and Rockland NY. Due to a grandfather clause, independent rents are calculated for Columbia, MD while Income Limits area not and, by congressional direction, Income Limits are calculated for Rockland County, NY while separate rents are not.
back to top
8. What does the term "HMFA" mean?
A: HUD Metro FMR Area. This term indicates that only a portion of the OMB-defined core-based statistical area (CBSA) is in the area to which the income limits (or FMRs) apply. HUD is required by OMB to alter the name of metropolitan geographic entities it derives from the CBSAs when the geography is not the same as that established by OMB. See OMB’s bulletin establishing CBSA definitions for FY2009 atHUD Metro FMR Area. This term indicates that only a portion of the OMB-defined core-based statistical area (CBSA) is in the area to which the income limits (or FMRs) apply. HUD is required by OMB to alter the name of metropolitan geographic entities it derives from the CBSAs when the geography is not the same as that established by OMB. See OMB’s bulletin establishing CBSA definitions for FY2009 at http://www.whitehouse.gov/omb/bulletins/fy2008/b08-01.pdf.
back to top
9. How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
A: The FY2009 Income Limits Area Definitions report places a "CBSA" in front of those areas where all counties in the CBSA are used in the calculation; an "SA" is placed in front of those areas where only the counties or towns of the subarea are used. Note that HUD Metro FMR Areas (HMFAs) are not the same as CBSAs, but that an HMFA's income limits may be based on CBSA data. To determine if income estimates are based on the subarea or CBSA income, please review the FY 2009 Income Limits Area Definitions report at: https://www.huduser.gov/datasets/il/il09/index.html.
back to top
Multifamily Tax Subsidy Projects (MTSPs) (otherwise known as Low-Income Tax Credit projects (LIHTC))
10. What are Multifamily Tax Subsidy Projects?
A: Multifamily Tax Subsidy Projects (MTSPs), a term coined by HUD, are all Low Income Housing Tax Subsidy projects under Section 42 of the I.R.S. Code and multifamily projects funded by tax-exempt bonds under Section 142. These projects may have special income limits so HUD has published them on a separate webpage. If you are a tax credit developer or resident in an MTSP, please go to the following site to determine what the appropriate income limits are: https://www.huduser.gov/datasets/mtsp.html.
back to top
11. How can 60 percent income limits be calculated?
A: For the Low Income Housing Tax Credit program, users should refer to the FY2009 Multifamily Tax Subsidy Project income limits available at https://www.huduser.gov/datasets/mtsp.html. The formula used to compute these income limits is as follows: take 120 percent of the Very Low-Income Limit. Do not calculate income limit percentages based on a direct arithmetic relationship with the MFI; there are too many exceptions made to the arithmetic rule in computing income limits.
back to top
12. How are Low Income Housing Tax Credit maximum rents computed from the very low income limits?
A: Please consult with the state housing financing agency governing the tax credit project in question for official maximum rental rates. A list of state housing finance agencies can be found at http://lihtc.huduser.gov/agency_list.htm. The Low Income Housing Tax Credit program is a U.S. Treasury Department program; therefore, HUD has no official authority over setting maximum rental rates. The following table is included for informational purposes only.
The imputed income limitation (as defined in 26USC Sec. 42(g)(2)) is 60 percent of the MFI. A rent may not exceed 30 percent of this imputed income limitation under 26USC Sec. 42(g)(2). Unit rents by number of bedrooms are derived from Very Low Income Limits (VLILs) for the different household sizes according to the following table:
LIHTC Maximum Rent Derivation from HUD Very Low Income Limits (VLILs) | |||||
Unit Size | 0 Bedroom | 1 Bedroom | 2 Bedroom | 3 Bedroom | 4 Bedroom |
50% MFI Unit Maximum Monthly Rent is 1/12 of 30% of: | 1-Person VLIL | (1-Person VLIL + 2-Person VLIL)/2 | 3-Person VLIL | (4-Person VLIL + 5-Person VLIL)/2 | 6-Person VLIL |
|
|
|
|
|
|
60% MFI Unit Maximum Monthly Rent is 1/12 of 30% of: | 120% of 1-Person VLIL | 120 % of [(1-Person VLIL + 2-Person VLIL)/2] | 120% of 3-Person VLIL | 120 % of [(4-Person VLIL + 5-Person VLIL)/2] | 120 % of 6-Person VLIL |
NOTE: Maximum rents for larger units are set by assuming an additional 1.5 persons per bedroom. |
back to top
13. What is the national non-metro median to be used to calculate the floor on rural LIHTC rents?
A: Section 3004 of the Housing and Economic Recovery Act (HERA) specifies that any project for residential rental property located in a rural area (as defined in section 520 of the Housing Act of 1949) use the maximum of the area median gross income or the national non-metropolitan median income. The FY2009 non-metropolitan median income is: $51,300.
back to top
GO Zones:
13. What is are the income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005 (also based on the non-metropolitan median income of $51,300)?
A: The 1-8 Person 50% Income Limits are as follows:
1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person | 7 Person | 8 Person |
$17,950 | $20,500 | $23,100 | $25,650 | $27,700 | $29,750 | $31,800 | $33,850 |
back to top
This system provides complete documentation of the development of the FY 2008 Income Limits (ILs) for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a summary of how the final FY 2008 ILs were updated and developed starting with the 2000 Census benchmark and including update factors from Bureau of Labor Statistics Data (BLS) and American Community Survey (ACS) data. The tables on the summary page include links to complete detail on how the data were developed.
This system provides complete documentation of the development of the FY 2008 Median Family Income (MFI) estimates for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2008 MFIs were developed starting with the 2000 Census benchmark and including update factors calculated from American Community Survey (ACS) data and in some cases Bureau of Labor Statistics (BLS) data.
The effective date is February 13, 2008.
- Transmittal Notice on Estimated Median Family Incomes
for FY 2008,
State Median Family Incomes in pdf - Tables for 1999 and Estimated FY2008 Decile Distributions by Area in pdf and MS WORD
- FY 2008 Income Limits Briefing Material in pdf
- Income Limit Area Definitions in pdf
- Transmittal Notice of FY 2008 Income Limits for the Public
Housing and Section 8 Programs in pdf
- Tables for Section 8 Programs in pdf and MS WORD
- Data for Section 8 Income Limits in MS
EXCEL
- Transmittal Notice of FY 2008 Income Limits for the Section
221(d)(3) BMIR, Section 235 and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235 and Section 236 Programs in pdf and MS WORD
- To view the FY2008 State 30%, Very Low (50%) and Low (80%) Income Limits, please click here.
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
Some of the information in this section is available for downloading in the Adobe Portable Document Format (PDF) which allows the document to be downloaded, viewed, and printed with all of its original formatting and graphics. To view files in this format you must first download a copy of the Adobe Acrobat Reader and follow the instructions for installation.
Frequently Asked Questions
- Why is my income limit unchanged from last year?
- Why did some area median family income (MFI) estimates decrease in FY2008 even though the OMB definition of the area did not change?
- Why did the area definitions change for the income limits and median family income estimates?
- Why does my very low-income limit not equal 50% of my median family income (MFI) (or my low income limit not equal 80% of my MFI)?
- What does the term “HMFA” mean?
- How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
- How can 60 percent income limits be calculated?
- How are Low Income Housing Tax Credit maximum rents computed from the very low-income limits?
- What is the FY2008 State Non-Metro Median Family Income and what are the associated income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005?
1. Why is my income limit unchanged from last year?
A: Income limits may be unchanged from last year either because area incomes or other factors governing local income limits did not increase or because income limits would otherwise be lower but have been administratively frozen rather than allowed to decrease. HUD has in the past selectively frozen income limits in instances where a reduction resulted from changes in income estimates, income estimation methodology, or income limit methodology.
2. Why did some area median family income (MFI) estimates decrease in FY2008 even though the OMB definition of the area did not change?
A: Some area median family incomes changed because incomes are falling in the area. The FY 2008 MFI estimation relies on 2006 American Community Survey (ACS) data as well as 2006 Bureau of Labor Statistics (BLS) wage data. The manner in which the ACS data are used depends on the type of data available, which differs by place size. Local ACS MFI estimates are available for areas with populations of 65,000 or more, but the statistical reliability of these estimates differs. When local MFI estimates are available, HUD MFI estimates are based partly on local ACS estimates and partly on state-level ACS estimates. The higher the statistical reliability of local estimates, the more heavily they are used. Local ACS MFI estimates are used in inverse proportion to the size of their margins of error (the numbers computed by adding and subtracting the published margins of error, or MoEs, from the median family income estimates form the "90 percent confidence intervals" for the estimates. There is a 90 percent probability that any random sample of the same size from the population will yield an estimate of the median family income in this range).
In practice, estimates for areas with small MoEs are almost entirely based on local ACS estimates but, where MoEs are large, state-level estimates more heavily influence results. For areas without local ACS estimates, update factors are generated using a combination of state-level 2000 Census to 2006 ACS MFI change and local area BLS wage change data. All estimates are then updated from December 2006 to April 2008 using a trend factor of 3.5 percent, which reflects the average annual change in median income from 1990 to 2000.
Due to several factors, ACS income estimates are known to be lower than those generated from the 2000 decennial Census when both are inflated to the same point in time. For additional details concerning the use of the ACS in HUD's calculations of Median Family Income, please see our FY 2008 Income Limits Briefing Materials, Attachment 2 (pages 15 - 18) which can be found at the following web address: https://www.huduser.gov/datasets/il/il08/IncomeLimitsBriefingMaterial.pdf. Additionally, full documentation of all calculations for Median Family Income and Income Limits is available in our FY 2008 Income Limits Documentation System. This system is available at this web address: https://www.huduser.gov/datasets/il/il2008_docsys.html.
3. Why did the area definitions change for the income limits and median family income estimates?
A: The area definitions used for income limits and median family income estimates follow the areas determined for the Fair Market Rents (FMRs) for that fiscal year. The definition of only a few areas changed in FY 2008 compared with FY 2007. These changes were due to changes published by OMB promoting two Micropolitan Statistical Areas to Metropolitan Statistical Areas (http://www.whitehouse.gov/omb/bulletins/fy2007/b07-01.pdf).
HUD uses FMR areas in calculating income limits because FMRs are used in the calculation of certain income limits and the two sets of definitions are linked in statutory history. For a complete description of the area definitions a used in the FY 2008 Income Limits, please review the FY 2008 Income Limits Area Definitions report: https://www.huduser.gov/datasets/il/il08/Area_Definitions_Report.pdf.
4.Why does my very low-income limit not equal 50% of my median family income (MFI) (or my low income limit not equal 80% of my MFI)?
A: There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high-income areas. These exceptions are detailed in the FY 2008 Income Limits Briefing Material report. Please review this report and pay special attention to Attachments 3 and 4 (beginning on page 19) that list the exceptions for metropolitan areas. Please also note that Tables 1 and 2 (beginning on page 5) show that most nonmetropolitan area income limits are based on state nonmetropolitan area medians.
For further information on the exact adjustments made to any area of the country, please see our FY 2008 Income Limits Documentation System. The documentation system is available at: https://www.huduser.gov/datasets/il/il2008_docsys.html. Once the area in question is selected, a summary of the area’s median family income estimate, Very Low-Income, Extremely Low-Income, and Low-Income Limits are displayed. Detailed calculations are obtained by selecting the relevant links.
5. What does the term "HMFA" mean?
A: HUD Metro FMR Area. This term indicates that only a portion of the OMB-defined core-based statistical area (CBSA) is in the area to which the income limits (or FMRs) apply. HUD is required by OMB to alter the name of metropolitan geographic entities it derives from the CBSAs when the geography is not the same as that established by OMB. See OMB’s bulletin establishing the current CBSA definitions at http://www.whitehouse.gov/omb/bulletins/fy2007/b07-01.pdf.
6. How can you tell if the entire CBSA or just the subarea (SA) is used to calculate the income limits?
A: The FY 2008 Income Limits Area Definitions report places a "CBSA" in front of those areas where all counties in the CBSA are used in the calculation; an "SA" is placed in front of those areas where only the counties or towns of the subarea are used. Note that HUD Metro FMR Areas (HMFAs) are not the same as CBSAs, but that an HMFA's income limits may be based on CBSA data. To determine if income estimates are based on the subarea or CBSA income, please review the FY 2008 Income Limits Area Definitions report at: https://www.huduser.gov/datasets/il/il08/Area_Definitions_Report.pdf.
7. How can 60 percent income limits be calculated?
A: HUD recommends you take 120 percent of the Very Low Income Limit. Do not calculate income limit percentages based on a direct arithmetic relationship with the MFI; there are too many exceptions made to the arithmetic rule in computing income limits. For the Low Income Housing Tax Credit program, Revenue Ruling 89-24 states that "…40 percent of the applicable units must be occupied by individuals or families having incomes equal to 120 percent or less of the income limit for a very low income family of the same size."
8. How are Low Income Housing Tax Credit maximum rents computed from the very low-income limits?
A: The imputed income limitation (as defined in 26USC Sec. 42(g)(2)) is 60 percent of the MFI. A rent may not exceed 30 percent of this imputed income limitation under 26USC Sec. 42(g)(2). Unit rents by number of bedrooms are derived from Very Low Income Limits (VLILs) for the different household sizes according to the following table:
| ||||||
Unit Size | 0 Bedroom | 1 Bedroom | 2 Bedroom | 3 Bedroom | 4 Bedroom | |
50% MFI Unit Maximum Monthly Rent is 1/12 of 30% of: | 1-Person VLIL | (1-Person VLIL + 2-Person VLIL)/2 | 3-Person VLIL | (4-Person VLIL + 5-Person VLIL)/2 | 6-Person VLIL | |
60% MFI Unit Maximum Monthly Rent is 1/12 of 30% of: | 120% of 1-Person VLIL | 120 % of [(1-Person VLIL + 2-Person VLIL)/2] | 120% of 3-Person VLIL | 120 % of [(4-Person VLIL + 5-Person VLIL)/2] | 120 % of 6-Person VLIL | |
NOTE: Maximum rents for larger units are set by assuming an additional 1.5 persons per bedroom. |
9. What is the FY2008 State Non-Metro Median Family Income and what are the associated income limits used for certain provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005?
A: A. The FY 2008 State Non-Metro Median Family Income is estimated to be $49,300. The 1-8 Person 50% Income Limits are as follows:
1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person | 7 Person | 8 Person |
$17,250 | $19,700 | $22,200 | $24,650 | $26,600 | $28,600 | $30,550 | $32,550 |
The effective date is March 20, 2007.
This system provides complete documentation of the development of the FY 2007 Income Limits (ILs) for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a summary of how the final FY 2007 ILs were updated and developed starting with the 2000 Census benchmark and including update factors from Bureau of Labor Statistics Data (BLS) and American Community Survey (ACS) data. The tables on the summary page include links to complete detail on how the data were developed.
This system provides complete documentation of the development of the FY 2007 Median Family Incomes (MFIs) for any area of the country selected by the user. After selecting the desired geography, the user is provided a page containing a detailed account of how the final FY 2007 MFIs were developed starting with the 2000 Census benchmark and including update factors calculated from American Community Survey (ACS) data and in some cases Bureau of Labor Statistics (BLS) data.
- Transmittal Notice on Estimated Median Family Incomes
for FY 2007,
State Median Family Incomes in pdf - Tables for 1999 and Estimated FY2007 Decile Distributions by Area in pdf and MS WORD
- FY 2007 Income Limits Briefing Material in pdf
- Income Limit Area Definitions in pdf
- Transmittal Notice of FY 2007 Income Limits for the Public
Housing and Section 8 Programs in pdf
- Tables for Section 8 Programs in pdf and MS WORD [updated April 25, 2007 to reflect 4/13/2007 technical correction]
A technical correction was posted on April 13, 2007 affecting Median Family Incomes and Income Limits for the following areas: Sioux County, IA; Warren County, VA HMFA; and Northumberland County, VA. In addition, Median Family Income estimates for 15 areas were corrected, but their Income Limits were not affected: Valdez-Cordova Census Area; Shelby County, IL; Dickinson County, IA; Floyd County, KY; Gratiot County, MI; Pine county, MN; Lincoln County, MS; Columbia, MO; Furnas County, NE; Foster County, ND; Hettinger County, ND; McLean County, ND; Comanche County, TX; Gaines County, TX; Brunswick County, VA. This technical correction applies only to these two tables, as noted. If you downloaded this table or the Section 221, 235, 236 table before April 25, 2007, and have not included the 4/13/2007 technical correction, you have incorrect information for those areas.Click here for corrected data on these areas. - Data for Section 8 Income Limits in MS
EXCEL
- Transmittal Notice of FY 2007 Income Limits for the Section
221(d)(3) BMIR, Section 235 and Section 236 Programs in pdf
- Tables for Section 221(d)(3) BMIR, Section 235 and Section
236 Programs in pdf and MS WORD [updated April 25, 2007 to reflect 4/13/2007 technical correction]
A technical correction was posted on April 13, 2007 affecting Median Family Incomes and Income Limits for the following areas: Sioux County, IA; Warren County, VA HMFA; and Northumberland County, VA. In addition, Median Family Income estimates for 15 areas were corrected, but their Income Limits were not affected: Valdez-Cordova Census Area; Shelby County, IL; Dickinson County, IA; Floyd County, KY; Gratiot County, MI; Pine county, MN; Lincoln County, MS; Columbia, MO; Furnas County, NE; Foster County, ND; Hettinger County, ND; McLean County, ND; Comanche County, TX; Gaines County, TX; Brunswick County, VA. This technical correction applies only to these two tables, as noted. If you downloaded this table or the Section 8 table before April 25, 2007, and have not included the 4/13/2007 technical correction, you have incorrect information for those areas.Click here for corrected data on these areas.
- To view the FY2007 State 30%, Very Low (50%) and Low (80%) Income Limits, please click here.
- The Median Family Incomes are lower in FY2007 than FY2006. Most State Income Limits for FY2007 are held harmless (not allowed to decrease) at their FY2006 level. To see the State Income Limits for FY2006, please click here.
To view all Section 8 Income Limits and Median Family Incomes for a specific State, in pdf format, go to the map below and click on that State.
You can also use the Dropdown below:
Some of the information in this section is available for downloading in the Adobe Portable Document Format (PDF) which allows the document to be downloaded, viewed, and printed with all of its original formatting and graphics. To view files in this format you must first download a copy of the Adobe Acrobat Reader and follow the instructions for installation.