HUD HCV Guidebook § 4.1
Income Targeting (HUD HCV Guidebook)
Operative Text
Each PHA must19 ensure that 75 percent of its admissions in each PHA fiscal year are families whose incomes
are at or below the extremely low-income (ELI) limit (see definition below).20 Less than 75 percent of ELI
permitted with HUD approval, in accordance with PHA Plan and additional circumstances described in
982.201(b)(2)(ii)(A)-(D). The Waiting List and Tenant Selection chapter contains rules pertaining to “targeting”
of assistance to extremely low-income families.
Definition of Extremely Low Income
Extremely low-income refers to families whose incomes meet the very low-
income threshold (50% of area median income) and do not exceed the higher
of the federal poverty line or 30% of area median income. This definition
became effective on July 1, 2014, ensuring working families living in areas
where the federal poverty line exceeds 30% of area median income will meet
the ELI income targeting requirements.
PHAs do not need to determine the ELI limit for their local area. HUD publishes
the ELI limits annually on HUD USER.
18
24 CFR § 982.201(b)(1)
19
24 CFR § 982.201(b)(2)
20
24 CFR § 5.603; Federal Register Notice 79 FR 35940, HUD Implementation of Fiscal Year 2014 Appropriations
Provisions on Public Housing Agency Consortia, Biennial Inspections, Extremely Low-Income Definition and Utility
Allowances, July 1, 2014.Under HUD Housing Choice Voucher Guidebook § 4.1, Public Housing Authorities (PHAs) are required to direct at least 75 percent of their annual Housing Choice Voucher admissions to families classified as extremely low-income (ELI) — meaning households whose income falls at or below the higher of the federal poverty line or 30 percent of the area median income, and no higher than 50 percent of area median income. This income-targeting rule is rooted in 24 CFR § 982.201(b)(2) and is designed to prioritize voucher assistance for the lowest-income households. A PHA may fall below the 75 percent threshold only with explicit HUD approval and in accordance with its PHA Plan and specific circumstances outlined in 24 CFR § 982.201(b)(2)(ii)(A)-(D). HUD publishes the applicable ELI income limits annually on HUD USER, so the thresholds are updated on a regular basis.
Plain English — not legal advice.
HUD Housing Choice Voucher Guidebook § 4.1 does not impose direct obligations on landlords, but property owners who participate in the Housing Choice Voucher program should be aware that the vast majority of voucher holders admitted each year are extremely low-income families, as PHAs are required to fill at least 75 percent of new admissions from this income tier. Compliant operators generally familiarize themselves with how ELI limits are defined — based on 30 percent of area median income or the federal poverty line, whichever is higher — since these thresholds shape the pool of prospective voucher tenants. Understanding the income-targeting framework under § 4.1 can help landlords set realistic expectations about the financial profiles of applicants presenting vouchers.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Housing Choice Voucher Guidebook § 4.1 establishes that at least 75 percent of voucher admissions each year must go to extremely low-income families, meaning the program is specifically structured to prioritize households with the greatest financial need. If a household's income is at or below the higher of the federal poverty line or 30 percent of the area median income (and no more than 50 percent of area median income), that household generally qualifies as ELI and falls within the priority group for voucher assistance under 24 CFR § 982.201(b)(2). Tenants or applicants who believe a PHA is not following its income-targeting obligations may consider contacting the U.S. Department of Housing and Urban Development directly, reviewing the PHA's publicly available PHA Plan, or reaching out to a local tenant-rights organization for general guidance on the admissions process.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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