Section 8 Income Limits Explained: Understanding Eligibility Thresholds
One of the most common questions about the Section 8 Housing Choice Voucher Program is whether you make too much — or too little — to qualify. The answer depends on where you live, how many people are in your household, and how the U.S. Department of Housing and Urban Development (HUD) calculates Area Median Income for your region. This guide breaks down how Section 8 income limits work, how they're calculated, and what you can do to determine your eligibility.
How Section 8 Income Limits Are Determined
HUD establishes income limits annually for every county and metropolitan statistical area in the United States. These limits are based on the Area Median Income (AMI), which represents the midpoint of all household incomes in a given area — half of households earn more, and half earn less.
Section 8 uses three primary income categories to classify applicants.
Extremely Low Income (ELI) applies to households earning at or below 30% of the AMI. This is the highest-priority category, and federal law requires that PHAs allocate at least 75% of new vouchers to applicants in this group. For a family of four in an area with a median income of $80,000, the ELI threshold would be approximately $24,000 per year.
Very Low Income (VLI) applies to households earning between 30% and 50% of the AMI. This is the standard eligibility ceiling for the Section 8 program. Using the same example, the VLI threshold would be approximately $40,000.
Low Income applies to households earning between 50% and 80% of the AMI. While this category exists in HUD's classification system, very few Section 8 vouchers are issued to households in this range due to the priority given to lower-income applicants.
Why Income Limits Vary by Location
Income limits reflect the cost of living in each area. A household earning $35,000 per year might be considered very low income in San Francisco but moderate income in a rural part of Mississippi. HUD adjusts limits to account for these regional differences.
Metropolitan areas with high housing costs tend to have higher income limits, while rural areas typically have lower thresholds. However, HUD applies a national floor to ensure that extremely low-income limits don't fall below a minimum level, even in the lowest-cost areas.
This means that in some affordable rural counties, the income limits may actually be higher relative to what most residents earn, making more families technically eligible. Conversely, in expensive cities, the limits may still feel restrictive given the actual cost of living.
Income Limits by Household Size
Income limits scale with household size. A larger household is allowed a higher gross income to account for the additional people being supported. HUD publishes limits for household sizes from one person up to eight persons, with adjustments available for even larger families.
For example, if the very low income limit for a family of four in your area is $40,000, the limits for other household sizes might look roughly like this: one person at $28,000, two persons at $32,000, three persons at $36,000, five persons at $43,200, six persons at $46,400, seven persons at $49,600, and eight persons at $52,800. These are approximate examples — actual figures vary by location and are updated annually.
The relationship between household size and income limits follows a formula established by HUD. The four-person limit serves as the base, with adjustments of roughly 10% for each person above or below four, though the exact calculation involves several additional factors.
What Counts as Income
Understanding what HUD considers "income" is critical for determining your eligibility. The definition is broader than just wages from a job.
Income that counts includes wages, salaries, tips, and bonuses from employment, self-employment income (net business income), Social Security benefits (both retirement and disability), Supplemental Security Income (SSI), pensions and annuities, unemployment compensation, welfare or public assistance payments, child support and alimony received, interest and dividend income, recurring gifts or contributions from family members, and regular military pay and allowances.
Income that does NOT count includes earned income of children under 18, lump-sum payments such as insurance settlements or inheritances, income from employment training programs (in many cases), temporary or nonrecurring income, foster care payments, income specifically excluded by other federal statutes, medical expense reimbursements, amounts received for the care of foster children or adults, and certain amounts received under HUD-funded programs.
HUD uses "annual gross income" as the starting point, which is the total anticipated income from all sources for all adult household members for the 12 months following the date of eligibility determination.
Adjusted Income and Deductions
While gross income determines initial eligibility, PHAs calculate your rent portion based on "adjusted income," which allows certain deductions.
Standard deductions available to qualifying households include a $480 deduction per dependent (household members who are under 18, disabled, or full-time students other than the head of household or spouse), a $400 elderly/disabled family deduction for households where the head, spouse, or sole member is 62 or older or has a disability, an excess medical expense deduction for elderly or disabled families (medical expenses exceeding 3% of gross income), a childcare expense deduction for childcare costs necessary to enable a household member to work or attend school, and a disability assistance expense deduction for costs related to enabling a disabled household member to work.
These deductions can significantly reduce your calculated rent burden. For example, a family earning $30,000 annually with two dependents and $2,000 in annual childcare expenses would see their adjusted income reduced to approximately $28,040, lowering their expected rent contribution.
How to Find Your Area's Income Limits
HUD publishes updated income limits each year, typically in the spring. You can find the limits for your specific area through the HUD Income Limits Documentation System available on HUD's website. Simply select your state and county, and the system will display the current limits for all household sizes and income categories.
You can also contact your local PHA directly. They can tell you the current limits and help you determine whether your household income falls within the eligibility range.
Keep in mind that income limits are updated annually, so the numbers change from year to year. Generally, they increase slightly each year to keep pace with rising incomes, though the actual change depends on economic conditions in your area.
What Happens If Your Income Changes After You're on Section 8
Once you're receiving Section 8 assistance, your income is re-examined at least once a year during your annual recertification. If your income has increased, your rent portion will go up — you'll pay a larger share and the voucher will cover less. If your income has decreased, your portion will go down.
There is no specific income ceiling that automatically disqualifies you from the program once you're enrolled. However, if your income rises to the point where your calculated rent portion equals the full contract rent, the PHA may terminate your assistance since the voucher is no longer providing any benefit.
Some PHAs have adopted policies to encourage income growth among participants. Under HUD's Earned Income Disregard policy, certain increases in earned income for disabled families are excluded from rent calculations for a limited period, allowing participants to benefit from employment gains without an immediate rent increase.
Additionally, HUD's Family Self-Sufficiency (FSS) program creates escrow accounts for participating families. When a family's earned income increases, the additional rent they would have paid is deposited into an escrow account that the family receives upon successful completion of the program.
Common Misconceptions About Income Limits
"I work, so I won't qualify." Many working families qualify for Section 8. Income limits are based on gross household income, and in high-cost areas, the thresholds can be surprisingly high. A family of four earning $50,000 or even $60,000 might qualify in expensive metro areas.
"I'm on disability/Social Security, so I automatically qualify." Not necessarily. While SSI recipients almost always fall below the income limits, Social Security retirement or SSDI benefits vary widely. The total of all income sources for all adult household members is what matters.
"Assets disqualify me." Having a savings account or owning a car generally does not disqualify you. HUD considers income from assets (such as interest earned), not the assets themselves. Only if your assets exceed $50,000 does the actual asset value potentially affect your calculation, and even then, it's the imputed income from those assets that matters.
"My income is too irregular to calculate." PHAs have methods for estimating income from irregular sources. They may average your income over the past 12 months, use your current rate of pay projected forward, or consider your year-to-date earnings. Seasonal workers, gig workers, and self-employed individuals can absolutely apply.
Planning for Your Application
If you believe you're close to the income limits, there are a few things to keep in mind. Calculate your total household gross income from all sources for all adult members. Compare that figure against the published limits for your county and household size. Remember that deductions will reduce your adjusted income for rent calculation purposes but the gross income figure is what determines initial eligibility.
If you're right at the borderline, don't assume you're ineligible. Apply anyway. Income verification is done by the PHA, and there may be deductions, exclusions, or calculation methods that work in your favor. Additionally, income limits change annually, so even if you're slightly over this year, you may fall within the limits next year.
The most important thing is to apply when a waitlist is open and let the PHA make the formal eligibility determination. Self-disqualifying based on an estimate means potentially missing out on assistance you're entitled to receive.
AssistanceFinder.org is an independent informational resource and is not affiliated with HUD or any government agency. Income limits are updated annually and vary by location. Always verify current limits with your local PHA or through HUD's official Income Limits Documentation System.