Income limits for Section 8 are set by your local Public Housing Authority, not by the federal government, and they change every year

The amount of money your household can earn and still be considered for Section 8 varies by where you live. The U.S. Department of Housing and Urban Development (HUD) sets a baseline — usually 50 percent of the area median income (AMI) for your county or metropolitan area — but your local Public Housing Authority (PHA) can set their own limit up to 80 percent of AMI. This means two households with identical income in different cities may have different outcomes.

Income limits are recalculated every year, usually in the spring, based on updated census data and local economic conditions. Your PHA publishes their current limits on their website or will provide them by phone. You need to check your specific PHA's numbers, not a national average, because the difference between what one city allows and another can be thousands of dollars per year.

HUD counts income differently than the IRS does. Earned income includes wages, salary, and self-employment income. Unearned income includes Social Security, pensions, unemployment benefits, child support, and interest from savings. Some income is excluded — for example, the first $480 per year of income earned by a child under 18, or income from a full-time student under 22 living with parents. Your PHA will ask for documentation of all income sources.

Key Takeaways

  • Income limits are set by your local Public Housing Authority and are based on area median income, which varies significantly by location and changes annually.
  • HUD counts earned income (wages, self-employment) and unearned income (Social Security, pensions, child support) differently than tax forms do, and some income types are excluded entirely.
  • You must verify your household's income with recent pay stubs, tax returns, or benefit statements — your PHA will specify which documents they need.
  • Exceeding the income limit disqualifies you from new Section 8 vouchers, but households already receiving vouchers are usually protected even if income rises later.
  • Your local PHA's website or phone line is the only reliable source for your area's current limits; national figures do not apply to your situation.

How your household income is calculated

Your household income includes everyone living in your unit who is related to you by blood, marriage, or adoption, plus any live-in aide approved by your PHA. It does not include live-in attendants or foster children. If you have an adult child living with you, their income counts toward your household total even if they pay you rent.

Your PHA will ask you to list all household members and their ages, then request documentation of income for each person who works or receives benefits. For employment income, they typically want recent pay stubs (usually the last 30 days) plus your most recent tax return. For benefits like Social Security or unemployment, they want the award letter or benefit statement showing the monthly amount. If you are self-employed, you will need to provide tax returns for the past two years and possibly a profit-and-loss statement.

Some income is not counted at all. Supplemental Security Income (SSI) is excluded in most cases. Temporary Assistance for Needy Families (TANF) is excluded. Income earned by a full-time student under 22 living with parents is excluded up to a certain amount. Adoption assistance and foster care payments do not count. Your PHA can tell you whether a specific income source counts in your situation.

What the income limit means for your voucher

If your household income is at or below your PHA's limit at the time you are selected from the waiting list, you move forward in the process. If your income exceeds the limit, your PHA will deny your request for a voucher. There is no appeal of an income-based denial in most jurisdictions — the limit is a threshold, not a judgment call.

Once you are already using a Section 8 voucher, the rules change. Your income can rise above the limit without losing your voucher. Your rent contribution (called your "tenant portion") will increase as your income rises, but you keep the subsidy. This is called "income recertification," and your PHA will ask you to report changes in income annually or when major changes occur. Some PHAs recertify every year; others do it every two or three years.

If you are on a waiting list and your income changes before you are selected, you should report it to your PHA. Some PHAs will remove you from the list if your income rises above the limit; others will keep you listed but deny you if you are selected. Ask your PHA what their policy is when you are on the waiting list.

Income limits vary by family size and location

A household of one person has a different income limit than a household of four people in the same city. Larger households are allowed higher income. The exact increase per additional person varies by PHA, but it typically ranges from $5,000 to $10,000 per additional household member per year.

Geographic variation is much larger. A single person in San Francisco might have an income limit around $65,000 per year, while a single person in a rural county might have a limit around $28,000. This reflects the cost of living in each area. Your PHA's income limits are published in a table that shows the limit for each household size. You find your household size in the left column and read across to see your limit.

Some PHAs also adjust limits based on whether you are elderly, disabled, or a family with children. These adjustments are rare and usually small, but your PHA's published limits will show whether they apply in your area.

How to find your area's current income limits

Your local Public Housing Authority publishes income limits on their website, usually in a PDF table. Search "[your city or county] Public Housing Authority income limits" or "[your city or county] Section 8 income limits." If you cannot find them online, call your PHA's main number and ask for the current income limits for your household size. They should provide the information by phone or mail.

HUD also maintains a database of all PHA income limits at www.huduser.gov, searchable by state and county. This is a backup source if your local PHA's website is not current, but your local PHA's own published limits are the official ones that will be used to make decisions about your case.

Income limits are updated once per year, usually in April or May. If you are checking limits in the fall or winter, the numbers you find are the current ones for that year. Do not assume last year's limits still apply.

What happens if your income is close to the limit

If your household income is within a few hundred dollars of the limit, you should still report it accurately to your PHA. Some PHAs round or use income averaged over a period of time, which can make a difference. For example, if you had a temporary job that inflated your income in one month, your PHA might average your income over the past 12 months instead of using the most recent month alone.

If you are self-employed or have variable income, document your income carefully. Your PHA will usually average self-employment income over two years of tax returns. If your business is new, they may use projections based on your business plan. Be honest about what you expect to earn, because underestimating can lead to problems later if your income rises and you are already receiving a voucher.

If you are uncertain whether your income will be counted as over or under the limit, ask your PHA before you submit your application materials. Some PHAs will give you a preliminary assessment based on the income information you provide.

Income limits and waiting lists

Most PHAs have waiting lists for Section 8 vouchers that are months or years long. Being on the waiting list does not mean you are may provide a voucher when your name comes up — it means your PHA will contact you to begin the process. At that point, they will verify your income against the current year's limit. If your income has risen since you applied, you may no longer meet the requirement.

Some PHAs allow you to update your income information while you are on the waiting list. Others do not contact you until they are ready to process your case, at which point they verify income from scratch. Ask your PHA what their process is. If you know your income will rise significantly before your name comes up, you may want to ask whether you should withdraw and reapply later, or whether staying on the list is still worthwhile.

A few PHAs have "preference" systems that prioritize certain groups — such as people experiencing homelessness or people with disabilities — even if their income is slightly above the limit. These are rare and vary by PHA. Your local PHA can tell you whether they use preferences and whether you would may have access to.

Frequently Asked Questions

Does my spouse's income count if we are married but file separate tax returns?

Yes. Your PHA counts the income of all household members regardless of how you file taxes. If you are married and living together, both spouses' income is included in your household total, even if you file separately or one spouse has no income.

What if I am unemployed right now but usually earn more?

Your PHA will count your current income, which is zero or whatever unemployment benefits you receive. They do not project future earnings. If you expect to return to work soon, report that to your PHA, but understand that your current income is what determines whether you meet the limit at the time of selection.

Can I exclude my adult child's income if they pay me rent?

No. If your adult child lives with you, their income counts toward your household total regardless of whether they pay rent. Rent paid to you by a household member does not reduce their income for Section 8 purposes.

Do I have to report a small side job or gig work income?

Yes. All earned income must be reported, including gig work, freelance income, and side jobs. Your PHA will ask about all sources of income and will verify what you report with documentation. Underreporting income can result in overpayment of your voucher and a demand to repay the difference.

What if my income goes above the limit after I already have a voucher?

You keep your voucher. Your rent contribution increases as your income rises, but you do not lose the subsidy. You will need to report the income increase during your annual recertification, and your new rent amount will be calculated based on your higher income.