Income limits determine whether you can rent an affordable apartment through most government programs

Income limits are the maximum amount of money you can earn and still be considered for affordable housing. They exist because these programs are designed for people with lower incomes, and the limits may support the apartments go to those who need them most. The limit is usually set as a percentage of the area's median income — often 30%, 50%, 60%, or 80% depending on the program.

Your household income includes wages, self-employment earnings, Social Security, disability payments, child support, and other regular money coming in. Most programs count gross income (before taxes) rather than what you take home. The income limit applies to your entire household, not just the person signing the lease, so you'll need to report earnings for everyone living with you.

Income limits vary significantly by location and program. A household earning $35,000 per year might may have access to in one city but exceed the limit in another. The same is true across different affordable housing programs — some are stricter than others. You need to check the specific limit for the specific program in your area.

Key Takeaways

  • Income limits are set as a percentage of your area's median income, and they vary by city, county, and program type.
  • Your household income includes all regular earnings from all household members, counted before taxes.
  • You must report income for everyone living in the apartment, including children and other relatives.
  • The same income can may have access to you for one program but disqualify you from another in the same city.
  • Income limits are recalculated annually, usually in April or May, so a program you didn't may have access to for last year may be open to you now.

How income limits are calculated in your area

The U.S. Department of Housing and Urban Development (HUD) publishes area median income (AMI) figures for every county and metropolitan area each year. A program set at 60% AMI means the income limit is 60% of what the median household in your area earns. If your area's AMI is $60,000, then 60% AMI would be $36,000.

Different programs use different percentages. Public housing and Housing Choice Vouchers (Section 8) typically use 50% AMI. Some Low-Income Housing Tax Credit (LIHTC) apartments are set at 60% AMI, while others go up to 80% AMI. Permanent supportive housing for people experiencing homelessness often has no income limit at all. The property manager or leasing office can tell you which percentage applies to the specific building you're interested in.

Income limits are updated every year, usually in spring. This means a building you didn't may have access to for in 2023 might have a higher limit in 2024. If you were turned down, it's worth checking back the following year. Conversely, if you're currently in an affordable apartment, your income limit may increase, but that doesn't mean your rent will — most programs protect your rent from rising if your income goes up.

What counts as household income

Household income includes all money earned by anyone living in the apartment. This covers wages and salaries, self-employment income, Social Security retirement or disability benefits, Supplemental Security Income (SSI), unemployment benefits, child support and alimony, and regular gifts or contributions from family members outside the household. Most programs also count income from rental property, investments, and pensions.

Some income does not count. Temporary information programs like TANF (Temporary information for Needy Families) are often excluded. Lump-sum payments like tax refunds or insurance settlements don't count as ongoing income. Food stamps and other in-kind benefits don't count. Student loans and financial aid are typically not counted as income, though some programs treat them differently — ask the property manager.

You'll need to document your income with recent pay stubs, tax returns, or benefit statements. If you're self-employed, most programs want to see two years of tax returns. If you receive benefits, bring the award letter from Social Security, SSI, or your state program. If your income varies month to month, programs usually average it over the past 12 months or use the most recent month as representative.

Income limits for different program types

Public housing typically limits households to 50% AMI, though some properties have mixed-income policies that allow some residents earning up to 80% AMI. Rent is calculated as 30% of your gross income, so it changes if your income changes.

Housing Choice Vouchers (Section 8) also use a 50% AMI limit for initial selection, but once you're in the program, you can stay even if your income rises. The voucher amount stays the same, so your out-of-pocket rent may increase over time.

Low-Income Housing Tax Credit (LIHTC) apartments are the most common type of affordable housing built in the last 20 years. Income limits vary by building — some are set at 50% AMI, others at 60%, and some at 80% AMI. A single building might have units at different income levels. The lease or property website should state which limit applies.

Project-based rental information programs, where the subsidy is tied to a specific building rather than to you as a person, often have income limits between 50% and 80% AMI depending on the funding source.

What happens if your income is above the limit

If your household income exceeds the limit, you will not be able to enter the program. There is no partial qualification or waiting for your income to drop. You'll need to look at market-rate apartments or programs with higher income limits in your area.

Some cities have programs with higher limits — 80% or 100% AMI — that serve people with moderate incomes. These are less common and often have longer waiting lists, but they exist. Your local housing authority or a 211 referral can tell you what's available at different income levels.

If you're close to the limit, it's worth understanding what counts as income in your area's programs. Some programs exclude certain benefits or allow deductions for childcare or medical expenses. The rules vary, so asking the property manager about their specific calculation method might reveal options you didn't know about.

Income limits change every year

HUD updates area median income figures annually, usually in April or May. When AMI goes up, income limits go up with it. When AMI goes down (rare, but it happens), limits go down. This means the income ceiling for a program can shift by several hundred or even several thousand dollars from one year to the next, depending on your area.

If you applied to a program and were told your income was too high, check again the following spring. Your income may not have changed, but the limit might have. Conversely, if you're currently in an affordable apartment and your income rises above the new year's limit, you're usually protected — most programs grandfather existing residents and don't evict you for earning too much.

Some programs recalculate income limits mid-year if there's a significant change in the area's economy, though this is uncommon. The property manager can tell you when limits are updated and whether you should reapply if you were previously turned down.

How to find the income limit for a specific building

The easiest way is to call or visit the property directly. The leasing office can tell you the income limit, what percentage of AMI it represents, and what documentation you'll need to prove your income. They can also tell you whether the limit applies to the entire household or is calculated per person.

You can also search HUD's LIHTC database online if the building receives Low-Income Housing Tax Credit funding. The database shows the income limit and rent for each property. For public housing or Housing Choice Vouchers, contact your local public housing authority — they maintain lists of available units and their income limits.

If you're working with a housing counselor or social worker, they can look up income limits for you and help you understand how your household's income is calculated. Many nonprofits offer free housing counseling and can walk you through the process of finding buildings where you may have access to.

Frequently Asked Questions

Does my spouse's income count if we're not married but live together?

Yes. Most programs count the income of anyone living in the household, regardless of marital status or relationship. If you have a roommate, their income counts too. Only people who are temporary visitors or who maintain a separate residence elsewhere are excluded.

What if my income is seasonal or varies month to month?

Programs typically average your income over the past 12 months to get a representative figure. If you're self-employed or work seasonal jobs, bring tax returns and recent pay stubs showing the variation. Some programs use your most recent month as the baseline if you're newly employed.

Can I be evicted if my income rises after I move in?

No. Once you're living in an affordable apartment, your income can rise without affecting your tenancy. Your rent may increase if the program calculates rent as a percentage of income, but you won't be forced to leave. This protection is built into most affordable housing programs.

Do student loans count as income?

Usually not. Student loan disbursements are generally not counted as income because they're expected to be repaid. However, some programs treat them differently, so ask the property manager about their specific policy before you explore.

What if I'm retired and living on Social Security?

Social Security counts as income. You'll need to bring your Social Security award letter showing the monthly benefit amount. If you also have a pension, rental income, or other earnings, those count too. Many affordable housing programs are designed for seniors, and Social Security alone often qualifies you if the amount is below the income limit.