HUD Handbook 4350.3 § 3-6
Income Limits (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
HUD guidance — not codified law
In Force
Verified 9/24/2026 · Next check 10/1/2026
effective 9/24/2026FederalSection 8 HCVOperative Text
HUD Handbook 4350.3 § 3-6
HUD establishes income limits and revises them annually to ensure that federal rental
assistance is provided only to low-income families. This paragraph defines income limits
and describes how the owner must use them to determine applicant eligibility for HUD-
subsidized multifamily properties. The following paragraphs describe which schedules
apply to each type of subsidy.
A. Income Eligibility
Except under limited circumstances, in order for an applicant to be eligible for
occupancy, the applicant family’s annual income must not exceed the applicable
income limit (see paragraph 5-4 for the definition of annual income). This limit
depends upon the type of subsidy and family size.
B. Establishing Income Limits
1. HUD establishes and publishes income limits for each county or
Metropolitan Statistical Area (MSA) in the country. The income limits are
based on the median income of the geographic area for which the limit is
established. Therefore, the income limit for one city or county is likely to
be very different from the income limit for another city or county.
2. Income limits are published annually and are available from the local HUD
office or on-line at *http://www.huduser.org/portal/index.html* .
3. Income limits are based on family size and the annual income the family
receives. (Chapter 5, Exhibit 5-1 describes what is included in annual
income.)
NOTE: In the case of a property with multiple buildings that are subject to
different income limits, the owner may use the higher income limit for the
entire property.
C. Timing of Income Eligibility Determinations
1. Owners determine income eligibility prior to approving applicants for
tenancy. Owners compare the family’s annual income to the appropriate
income limit prior to placing an applicant on the waiting list. However,
owners may wait until a unit is available to verify the applicant’s income
eligibility.
2. Owners are required to report the income status of each assisted tenant
to HUD at least annually. Tenants whose incomes increase above the
income limit continue to receive assistance so long as they qualify for
assistance in paying rent under the applicable program rules. (See
Chapter 5, Section 4, and Chapter 7, Section 1, for more information)
D. Program Income Limits
The income limits used to determine eligibility vary by program and are as
follows: the Below Market Interest Rate (BMIR) income limit, the low-income
limit, and the very low-income limit. A family’s eligibility for assistance is based
on the income limit applicable to the type of housing assistance the family is to
receive. A family may be income-eligible for one program but have too high an
income for another program.
In addition to the three income limits used to determine eligibility, there is a
fourth – the extremely low-income limit – used for income-targeting in Section 8
projects but not for eligibility (see paragraphs 4-5, 4-15, and 4-25). These four
income limits are presented in Figure 3-2.
Figure 3-2: Income Limits
All of these income limits are based on the median income
for a metropolitan statistical area (MSA). This table shows
the four income limits as a percentage of median income
in an MSA.
Income Limit Median Income for the Area
BMIR income limit 95% of median income
Low-income limit 80% of median income
Very low-income limit 50% of median income
Extremely low-income 30% of median income
limit
1. Section 8 Income Eligibility. Section 8 properties, depending upon the
effective date of the initial Housing Assistance Payments (HAP) contract
for the property, use either the low or very low-income limit.
a. Section 8 property owners must use the extremely low-income
limit when selecting applicants to fulfill the income-targeting. (See
paragraphs 4-5, 4-15, and 4-25.)
b. Projects with HAP contracts initially effective on or after October 1,
1981, must admit only very low-income families unless HUD has
approved an exception to admit families whose incomes are above
the very low-income limit.
c. Projects with HAP contracts initially effective prior to October 1,
1981, may admit families up to the low-income limit.
NOTE: Exceptions to income limits may be applicable under
limited circumstances. See paragraph 3-7.
2. Section 236, Rent Supplement, and Rental Assistance Payment (RAP).
These programs use the low-income limit to establish program eligibility.
3. Section 202 without assistance. Use the Section 236 low-income limit
from the table of Income Limits for Section 221(d)(3) BMIR, Section 235
and Section 236 programs to establish program eligibility, with the
following two exceptions:
a. Section 202 projects for which the application was filed prior to
December 15, 1962 are not subject to income limits
b. For Section 202 projects where income limits above the low-
income limit were approved by HUD prior to July 21, 1972, the
approved higher income limits remain in effect for these projects.
4. Section 202/162 with Project Assistance Contracts (Section 202 PACs).
These contracts use the low-income limit.
5. Section 202/811 with Project Rental Assistance Contracts (Section
202/811 PRACs). These assistance contracts use the very low-income
limit (except properties funded in FY 1995, which use the low-income
limit). Owners must receive approval from HUD Headquarters to admit
families whose incomes are above the very low-income limit. (See
paragraph 3-8.A.3 and 3-20.G.)
6. Section 221(d)(3) BMIR. This program uses the BMIR income limit, which
is set at 95% of the area median income.
7. Summary. Refer to Figure 3-3 for a summary of the income limits used to
determine eligibility for each program.
8. Projects with more than one type of subsidy. In projects with a
combination of subsidy types, such as Section 221(d)(3) BMIR and
Section 236 projects that also have Section 8 in a portion of the property,
owners must use the eligibility income limit based on the type of
assistance provided to the family. For example, applicants for a Section
236 project that receive Section 8 must qualify using the applicable
Section 8 income limit.
Figure 3-3: Income Limits by Program
Subsidy Type of Income Limit
Section 8 (pre-1981) Low, very low, and extremely low-income limit
Section 8 (post-1981) Very low and extremely low-income limit
Section 236 Low-income limit
Rent Supplement Low-income limit
Rental Assistance Payment (RAP) Low-income limit
Section 202 without assistance Low-income limit
See paragraph 3-6.D.3 for exceptions
Section 202 with Section 8 Assistance Pre-1981 Low, very low, and extremely low-
income limit
Post-1981 Very low and extremely low-income
limit
Section 202 with Rent Supplement Low-income limit
Section 202 PACs Low-income limit
Section 202/811 PRACs, except those Very low-income limit
funded in FY1995
Section 202/811 PRACs funded in FY 1995 Low-income limit
Section 221(d)(3) BMIR BMIR income limit
E. Income Limits and Family Size
1 Income limits vary by family size. Income limits are published based on
the number of persons in the household (for example, 1 person, 2
persons, 3 persons) with increasingly higher income limits for families with
more members.
2. Once the owner determines the applicable income limits based on the
type of subsidy in the property, the owner must determine the appropriate
limits to apply to a family based on family size. In determining the
appropriate income limits, the owner must include some individuals as
part of the family but exclude others.
3. When determining family size for establishing income eligibility, the owner
must include all persons living in the unit except the following:
a. Live-in aide.
(1) A person who resides with one or more elderly persons,
near-elderly persons, or persons with disabilities, and who:
(a) Is determined to be essential to the care and well-
being of the person(s);
(b) Is not obligated for the support of the person(s); and
(c) Would not be living in the unit except to provide the
necessary supportive services.
(2) To qualify as a live-in aide:
(a) The owner must verify the need for the live-in aide.
Verification that the live-in aide is needed to provide
the necessary supportive services essential to the
care and well-being of the person must be obtained
from the person’s physician, psychiatrist or other
medical practitioner or health care provider. The
owner must approve a live-in aide if needed as a
reasonable accommodation in accordance with 24
CFR Part 8 to make the program accessible to and
usable by the family member with a disability. The
owner may verify whether the live-in aide is
necessary only to the extent necessary to
document that applicants or tenants who have
requested a live-in aide have a disability-related
need for the requested accommodation. This may
include verification from the person’s physician,
psychiatrist or other medical practitioner or health
care provider. The owner may not require
applicants or tenants to provide access to
confidential medical records or to submit to a
physical examination. (See discussion in Chapter
2.)
(b) Expenses for services provided by the live-in aide,
such as nursing services (dispensing of
medications or providing other medical needs) and
personal care (such as bathing or dressing), that
are out-of-pocket expenses for the tenant and
where the tenant is not reimbursed for the
expenses from other sources, are considered as
eligible medical expenses. Homemaker services
such as housekeeping and meal preparation are
not eligible medical expenses. (See Chapter 5 and
Exhibit 5-3 for more information on medical
expenses.)
(c) Qualifies for occupancy only as long as the
individual needing supportive services requires the
aide’s services and remains a tenant. The live-in
aide may not qualify for continued occupancy as a
remaining family member. Owners are encouraged
to use a HUD-approved lease addendum that
denies occupancy of the unit to a live-in aide after
the tenant, for whatever reason, is no longer living
in the unit. (See paragraph 6-5.A.4.g for more
information.) The lease addendum should also give
the owner the right to evict a live-in aide who
violates any of the house rules.
(d) Income of a live-in aide is excluded from annual
income. (See Exhibit 5-1.)
(e) *Must disclose and provide verification of their
SSN.*
(f) Must meet the screening criteria discussed in
Paragraph 4-7 B.5.
(3) A relative may be considered to be a live-in aide if they
meet the requirements in 1, above, especially 1(c).
(4) An adult child is eligible to move into a Section 202/8
project after initial occupancy only if they are essential to
the care or well-being of the elderly parent(s). The adult
child may be considered a live-in aide if all of the
requirements in 1, above, apply and there is a verified need
for a live-in aide in accordance with 2(a), above. (See
Paragraph 7-4.D for more discussion on adult children
moving in after initial occupancy.)
(5) An adult child is not eligible to move into a Section 202
PRAC or Section 811 PRAC after initial occupancy unless
they are performing the functions of a live-in aide and are
eligible to be classified as a live-in aide for eligibility
purposes. (See Paragraph 7-4.E.)
b. Guests. (See the Glossary for the definition.)
4. When determining family size for income limits, the owner must include
the following individuals who are not living in the unit:
a. Children temporarily absent due to placement in a foster home;
b. Children in joint custody arrangements who are present in the
household 50% or more of the time;
c. Children who are away at school but who live with the family
during school recesses;
d. Unborn children of pregnant women.
e. Children who are in the process of being adopted.
f. Temporarily absent family members who are still considered family
members. For example, the owner may consider a family member
who is working in another state on assignment to be temporarily
absent;
g. Family members in the hospital or rehabilitation facility for periods
of limited or fixed duration. These persons are temporarily absent
as defined in subparagraph f above; and
h. Persons permanently confined to a hospital or nursing home. The
family decides if such persons are included when determining
family size for income limits. If such persons are included, they
must not be listed as the head, co-head, or spouse on the lease or
in the data submitted to TRACS but may be listed as other adult
family member. This is true even when the confined person is the
spouse of the person who is or will become the head. If the family
chooses to include the permanently confined person as a member
of the household, the owner must include income received by
these persons in calculating family income. See paragraph 5-6.D.
5. When determining income eligibility, the owner must count the income of
family members only.
F. Determining the Applicable Income Limit and Eligibility for Assistance
1. After determining family size, the owner must calculate the family’s annual
income as described in Chapter 5, Section 1.
2. After determining family income, the owner must compare the family’s
annual income to the appropriate income limit for the program and family
size.
3. Income-eligible families must have annual income that is less than or
equal to the income limit for the family size.
4. Income-eligible families must also need the assistance. The amount the
family would be required to pay using the applicable HUD rent formula
must be less than the gross rent for the unit or market rent for Section 236
projects.
NOTE: This requirement does not apply to Section 202 PRACs or
Section 811 PRACs.
5. IMPORTANT: A household does not need to have income to be eligible
for assisted housing programs that provide rental assistance through an
assistance contract (i.e., Section 8, Rent Supplement, RAP, Section 202
PAC, Section 202 PRAC or Section 811 PRAC).Source: Legislative text reproduced verbatim
Effective Timeline
Current
Sep 24, 2026
Click on timeline segments to view historical versions.
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.
Related Rules
§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 5.512
§ 5.512 Verification of eligible immigration status.