Section 8 Housing Income limits 2022

On April 18, 2022, HUD released the Fiscal Year 2022 Income Limits for Section 8 properties. The new income limits must be utilized when processing all Move In certifications effective April 18, 2022 and later. Please note that these limits do not affect the eligibility of households who are already receiving Section 8 assistance.

Please make sure you immediately update your TRACS software with the new limits. You can access the Income Limit documentation at:

HUD Income Limits

The HOME Income Limits are calculated using the same methodology that HUD uses for calculating the income limits for the Section 8 program, in accordance with Section 3(b)(2) of the U.S. Housing Act of 1937, as amended. These limits are based on HUD estimates of median family income, with adjustments based on family size. Please note that the 30 percent income limits for the HOME program have been calculated based on the definition of Extremely Low–Income Family (ELI) as described in Consolidated Submission for CPD Programs section of 24 CFR part 91.5. Therefore, the ELI Limit is calculated as 30 percent of median family income for the area and may not be the same as the Section 8 ELI Limit for your jurisdiction. The Section 8 Limit is calculated based on the definition of ELI as described in The 2014 Consolidated Appropriations Act, (Section 238 on page 128 Stat 635) which defines ELI as very low–income families whose incomes do not exceed the higher of the Federal poverty level or 30% of area median income.

Family sizes in excess of 8 persons are calculated by adding 8% of the four-person income limit for each additional family member. That is, a 9-person limit should be 140% of the 4-person limit, the 10-person limit should be 148%.

The HOME income limit values for large households (9-12 persons) must be rounded to the nearest $50. Therefore, all values from 1 to 24 are rounded down to 0, and all values from 25 to 49 are rounded up to 50.

Related Information

To view additional related information, including Area Definitions, Uncapped 80% of Median Calculations, and Memos,  select a specific year from the filter below.

The most recent reports are listed below. Browse reports by selecting the next page or use the filters on the left to find specific reports.

Section 8 assistance is available only to U.S. citizens, non-citizens with legal immigration status, and "mixed families" (families in which at least one, but not all members have eligible immigration status). Assistance to mixed families will be prorated. The same program rules and regulations for determining eligibility status for Section 8 rental assistance apply to everyone.

To be eligible, the household must be either a family or a single person whose income does not exceed the area limits as set by U.S. Department of Housing and Urban Development (HUD). HUD establishes annual income limits by family size as:

• Extremely Low Income = Income does not exceed the higher of the federal poverty level or 30% of area median income
• Very Low Income = 50% of area median income
• Low Income = 80% of area median income.

HUD's income limits for the Los Angeles area are in the table below. Only families meeting Extremely Low and Very Low-Income standards are eligible for Section 8 assistance. Low Income standards are used only when, under certain circumstances, owners convert from a project-based to a tenant-based program. Congress requires that 75% of new admissions to the tenant-based program and 40% of new admissions to the project-based programs be Extremely Low Income. The remaining new admissions may not exceed the Very Low-Income limit.

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 2005 ACS MFI change and local area BLS wage change data. All estimates are then updated from December 2005 to April 2007 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 FY2007 Income Limits Briefing Materials, Attachment 2 (pages 15 – 19) which can be found at the following web address: https://www.huduser.gov/datasets/il/il07/IncomeLimitsBriefingMaterial.pdf. Additionally, full documentation of all calculations for Median Family Income and Income Limits is available in our FY2007 Income Limits Documentation System. This system is available at this web address: https://www.huduser.gov/datasets/il.html#2007_query

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 FY2007 compared with FY2006. These changes were due to a change in the methodology for determining FMR area definitions. The actual calculation and comparison for an individual area can be seen in the FY2007 FMR Documentation System: https://www.huduser.gov/portal/datasets/fmr.html#2007_query.

Most of the changes in area definition occurred in FY2006 and are discussed in detail by individual area in the FY2006 FMR Documentation system: https://www.huduser.gov/portal/datasets/fmr.html#2006_query

In FY2006, HUD revised the area definitions for income estimates based on guidance from the Office of Management and Budget (OMB) that revised metropolitan areas using 2000 Census data. Under the new OMB area definitions, some former nonmetropolitan counties became part of metropolitan areas, and some metropolitan areas were subsumed within other areas, or their names have been significantly changed. In instances where OMB metropolitan area definitions changed, HUD’s areas may consist of subareas within the new OMB metropolitan area. In FY2007, subareas are established only if there are significant differences (5 percent or more) in rents or median incomes between the different old FMR area parts that comprise the new OMB metropolitan area.

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 FY2007 Income Limits, please review the FY2007 Income Limits Area Definitions report: https://www.huduser.gov/datasets/il/il07/Area_Definitions_Report.pdf

4. Why can’t I find the income limits for a particular nonmetropolitan county or a metropolitan area?
A: There were few changes in the area definitions between FY2006 and FY2007 income limits. Some additional subareas were created, but most changes were made in FY2006. The FY2006 area definition changes are discussed in detail for individual areas in the documentation system for Fair Market Rents (FMRs) https://www.huduser.gov/portal/datasets/fmr.html#2006. 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.

In FY2007, median family incomes and income limits area definitions were changed only in cases where there were significant differences (greater than 5%) in median incomes between the subarea and the Core Based Statistical area, even though the Fair Market Rents show no significant difference. The area definitions report for income limits designates the basis of each submarket’s income limits. Please review at https://www.huduser.gov/datasets/il/il07/Area_Definitions_Report.pdf

To understand the more significant area definition changes in FY2006, please review the FY2006 Income Limits Area Definitions report: https://www.huduser.gov/datasets/il/il06/Definitions06.doc

5. 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 FY2007 Income Limits Briefing Material report. Please review this report and pay special attention to Attachments 3 and 4 (beginning on page) 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 FY2007 Income Limits Documentation System. The documentation system is available at: https://www.huduser.gov/datasets/il.html#2007. 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.

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