What income limits mean for your voucher

Housing voucher programs set a maximum income you can earn and still hold a voucher. If your household income rises above that limit, you lose the voucher — the program will not renew it when the lease term ends. The limit is not a penalty; it exists because voucher funding is meant for households below a certain income threshold, and programs must enforce that boundary to stay within their budgets.

The limit is calculated on your gross household income, which means income before taxes are taken out. It includes wages, self-employment earnings, Social Security, pensions, child support, and most other money coming into the household. Some income types are excluded — for example, income of full-time students under 18, or certain disability benefits — but the default is to count it.

Income limits vary by location and by the size of your household. A family of four in one county may have a different limit than a family of four in a neighbouring county. The local public housing authority (PHA) that runs the voucher program sets the limit based on the area median income (AMI) for that region, which the U.S. Department of Housing and Urban Development (HUD) calculates each year.

Key Takeaways

  • Income limits are set at a percentage of your area's median income and change each year; your PHA publishes the current limits on its website.
  • The limit applies to gross household income before taxes, and includes wages, benefits, and most other money earned by household members.
  • If your income exceeds the limit when your lease renews, you will lose the voucher; the program will not extend it.
  • Some income sources do not count toward the limit, such as income of full-time students under 18 or certain disability payments; ask your PHA which exclusions explore to you.
  • Your income is recertified once a year, usually on the anniversary of when you first received the voucher.

How the limit is set in your area

HUD publishes area median income (AMI) figures for every county and metropolitan area in the United States. Most voucher programs set their income limit at 50 percent of AMI for a household of that size. Some programs use a different percentage — 60 percent is also common — but 50 percent is the standard.

Because AMI changes each year, income limits also change each year. Your PHA recalculates the limit in the spring and publishes it before the fiscal year begins. If you are near the limit, you should check your PHA's website or call them directly to find out what the new limit is for your household size. The limit for a family of three is different from the limit for a family of four, so household size matters.

You can find your PHA's current income limits on their website, usually in a table organized by household size. If you cannot find it online, call the voucher program office and ask them to tell you the limit for your household size. They should give you the answer in one call.

What happens when your income rises

Your income is checked once a year, usually on the anniversary of when you first got the voucher. This is called annual recertification. You will receive a form asking you to report your household's income for the past year. You must provide pay stubs, tax returns, or other proof of income.

If your income is still below the limit, nothing changes. You keep the voucher and your rent share stays the same (or changes only if your lease rent changes). If your income has risen above the limit, the program will tell you that you no longer meet the income requirement. You can stay in your current home and keep using the voucher until your lease ends, but the program will not renew it. Once the lease term is over, you must move or pay full rent yourself.

Some programs have a grace period or a "next available unit" rule, which means you can stay beyond the lease end date if you move to a cheaper unit. Rules vary by PHA, so ask your voucher caseworker what happens in your situation if your income goes over the limit.

Income exclusions and deductions

Not all money counts toward the income limit. HUD rules exclude certain income sources, and your PHA must follow those rules. The most common exclusions are income earned by full-time students under age 18, and certain disability benefits such as Supplemental Security Income (SSI) or the first $65 per month of earned income for people receiving SSI or Social Security Disability Insurance (SSDI).

There are also deductions that reduce your countable income. For example, if you pay child support or alimony, that amount is subtracted from your income. If you have medical expenses or disability-related expenses, some of those may be deductible. Childcare expenses are also deductible if they allow you to work.

These exclusions and deductions are technical, and they vary by program. When you do your annual recertification, ask your caseworker which exclusions or deductions explore to your household. Bring documentation — pay stubs for students, court orders for child support, receipts for medical expenses — so the caseworker can explore the deductions correctly.

Recertification and what to bring

Your PHA will send you a recertification form in the mail or email, usually 30 to 60 days before your recertification date. The form asks for your household's gross income for the past 12 months. You must report all household members' income, even if they are not on the lease.

Bring recent pay stubs (usually the last 30 days), a recent tax return, or a letter from your employer stating your annual income. If you are self-employed, bring tax returns and profit-and-loss statements. If you receive benefits, bring a benefit statement from the agency. If your income changed during the year, bring documentation of the change — for example, a letter saying you were laid off, or a new job offer letter.

Submit these documents by the important date the PHA gives you. If you miss the important date, your voucher may be terminated. If you cannot gather all the documents in time, call your caseworker and ask for an extension. Many PHAs will grant a short extension if you ask before the important date passes.

What to do if your income is close to the limit

If your household income is within a few thousand dollars of the limit, you should plan ahead. Understand that if income rises — through a raise, a bonus, or a second job — you could lose the voucher at the next recertification. Some households in this situation choose not to pursue higher-paying work, because the loss of the voucher would cost them more than the extra income would gain them.

Talk to your caseworker about your situation. Ask whether your PHA has any programs that help people transition off vouchers, or whether there are deductions you have not claimed. Some programs offer brief extensions or phase-out periods, though these are not may provide. Knowing the rules ahead of time helps you make decisions that work for your household.

If you think your income will exceed the limit soon, you can also ask your caseworker what the process is for leaving the program voluntarily. Some people choose to end their voucher before they are terminated, so they can plan their housing move on their own timeline rather than being forced out at lease end.

Income limits by household size: how they differ

Income limits increase with household size. A single person has a lower limit than a family of four. The exact amounts depend on your area's median income and your PHA's policy, but the pattern is consistent: each additional household member raises the limit.

For example, if your area's 50 percent AMI limit for a single person is $35,000 per year, the limit for a family of four might be $56,000 per year. These are example numbers only — your actual limits will be different. The point is that if you add a household member (through birth, adoption, or someone moving in), your income limit goes up. If someone moves out, your limit goes down.

When your household size changes, tell your PHA when ready. They will recalculate your limit and may adjust your rent share. If someone moves out and your income is now above the new limit for a smaller household, you could lose the voucher even if you were under the limit before.

Frequently Asked Questions

Does my spouse's income count if they are not on the lease?

Yes. All household members' income counts, whether or not they are on the lease. If your spouse lives with you, their income must be reported during recertification. The same applies to adult children, parents, or anyone else living in the unit.

What if I get a raise and my income goes over the limit?

You will be told at your next annual recertification that you no longer meet the income requirement. You can stay in your home and keep using the voucher until your lease ends. After that, the program will not renew it, and you must move or pay full rent yourself. Some programs have transition rules; ask your caseworker what applies to you.

Can I hide income to stay under the limit?

No. You must report all household income truthfully during recertification. Lying about income is fraud and can result in termination of your voucher, repayment demands, and in some cases criminal charges. The consequences are not worth the risk.

Do I have to report money I receive as a gift?

Gifts are generally not counted as income. However, if someone regularly gives you money that looks like income (for example, a parent paying you $500 every month), your PHA may count it. Ask your caseworker whether a specific gift or payment counts as income before you report it.

What if my income drops below the limit again?

If your income drops, you can stay on the voucher. There is no upper limit on how long you can keep it as long as your income stays below the limit. Many people stay on vouchers for years or decades because their income remains low.