Section 8 income limits are set by your local public housing authority, not by a single federal number

The amount of money you can earn and still be considered for Section 8 varies by location. The U.S. Department of Housing and Urban Development (HUD) sets a baseline formula, but your local public housing authority applies it to your specific area's median income. This means a household earning $50,000 per year might may have access to in one county and not in another 50 miles away.

Income limits also change annually. Your housing authority recalculates them each fiscal year based on updated area median income data. If you were over the limit last year, you may fall under it this year, or vice versa. The authority publishes these limits publicly, usually on their website or by request.

Most housing authorities use a rule called the 30% rule: you pay roughly 30 percent of your gross monthly income toward rent, and the program covers the rest. This means the income limit is really a ceiling on how much rent subsidy the program will provide, not a hard cutoff on who can live in a unit.

Key Takeaways

  • Income limits are set locally by your public housing authority and change each year, so you need to check with your specific authority rather than using a national figure.
  • HUD bases limits on area median income, so the same household income qualifies in some regions but not others.
  • Most programs use the 30 percent rule: you pay 30 percent of gross income toward rent, and Section 8 covers the difference up to the fair market rent for your area.
  • Your income is counted as gross monthly income before taxes, and includes wages, self-employment earnings, Social Security, disability benefits, child support, and other regular sources.
  • You can contact your local housing authority directly to learn the current income limit for your household size and area.

How HUD calculates the baseline income limit for your area

HUD publishes an area median income (AMI) figure for every county and metropolitan area in the country. This is the middle income—half of households earn more, half earn less. HUD updates these figures annually using U.S. Census data and other sources.

Section 8 income limits are typically set at 50 percent of the AMI for your area. So if the AMI in your county is $80,000, the income limit for a family of four might be around $40,000 per year. However, some housing authorities set limits at different percentages depending on local conditions and funding. A few use 60 percent of AMI; others use lower thresholds.

Your housing authority receives this HUD data and applies it to your specific household size. A single person has a different limit than a family of four. The authority publishes income limit tables showing the maximum income for households of one, two, three, four, five, six, seven, and eight people.

What income counts toward the Section 8 limit

Section 8 counts gross monthly income—the money you receive before taxes or deductions. This includes wages from employment, self-employment earnings, Social Security benefits, Supplemental Security Income (SSI), disability payments, unemployment benefits, child support, alimony, pension income, and regular gifts or contributions from family members.

Some income does not count. Student financial aid, tax refunds, one-time gifts, and money from selling assets usually do not factor into the calculation. Your housing authority has a detailed list of what counts and what does not. If you receive income from an unusual source, ask your authority whether it counts.

If you are self-employed, the authority will look at your net self-employment income (revenue minus business expenses) over the past two years. If your income varies significantly, they may average it to get a more stable picture of what you actually earn.

Income limits for different household sizes

Section 8 income limits increase with household size. A single person has a lower limit than a couple, who have a lower limit than a family of four. This reflects the fact that larger households typically need more income to cover basic expenses.

The exact numbers depend on your area's AMI and your housing authority's policies. To find the income limits for your household size, contact your local public housing authority directly or visit their website. Many authorities post income limit tables that show the maximum income for each household size in a clear format.

If your household size changes—you marry, have a child, or take in a family member—your income limit may change. Some authorities recalculate limits when household composition changes; others use the limit that was in place when you first received the voucher. Ask your case manager how changes affect your situation.

What happens if your income rises above the limit

If you are already receiving Section 8 and your income increases above the limit, you do not lose your voucher when ready. Most housing authorities allow you to continue receiving information for a grace period—often one year—while your income exceeds the limit. This is called over-income status.

During this period, your rent contribution may increase as your income rises. Once the grace period ends, you typically must leave the program. Some authorities offer extensions or exceptions based on hardship, so ask your case manager if you are approaching the limit.

If you are trying to get into Section 8 for the first time, you must be under the income limit at the time you are admitted. Once you are in the program, the over-income rules give you some breathing room if your earnings increase.

How to find your local housing authority's income limits

Your local public housing authority publishes income limits annually, usually by June or July for the fiscal year that begins October 1. You can find your authority by searching "public housing authority" plus your city or county name, or by visiting HUD's website, which has a directory of all housing authorities.

Once you locate your authority, call their main number or visit their website. Most post income limit tables as downloadable PDFs. If the website does not have them, ask for the current income limits for your household size. The staff can tell you whether you fall within the range and what the next step is.

If you are on a waiting list, the authority will use the income limits in effect at the time you are offered a voucher, not the limits from when you applied. This means if you applied two years ago and are offered a voucher now, the current year's limits explore to you.

Income limits versus fair market rent

Income limits and fair market rent (FMR) are two separate things, and it is important not to confuse them. The income limit is the maximum you can earn to be considered for the program. Fair market rent is the amount HUD estimates a typical two-bedroom apartment rents for in your area.

You pay 30 percent of your income toward rent. Section 8 covers the difference between your contribution and the fair market rent, up to the program's payment standard. If fair market rent in your area is $1,500 and you earn $2,000 per month, you pay $600 and Section 8 pays up to $900 (assuming the payment standard allows it).

Fair market rent also changes annually and varies by bedroom size. A one-bedroom has a different FMR than a three-bedroom in the same area. Your housing authority uses these figures to determine how much subsidy they can provide for each unit.

Frequently Asked Questions

Do I have to report income increases to my housing authority?

Yes. You are required to report changes in income within 30 days of when they occur. This includes new employment, a raise, a job loss, or changes to benefits. Your housing authority uses this information to recalculate your rent contribution. Failing to report can result in overpayment of benefits and may affect your voucher status.

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

Your housing authority will average your income over a period of time—usually the past 12 months or the past two years for self-employment. This gives a more accurate picture of what you actually earn. If you have a new job, they may use a shorter period or project your income based on your contract or offer letter.

Can I be denied Section 8 just because I earn too much?

Yes. If your gross monthly income exceeds your area's Section 8 limit for your household size, you will not be admitted to the program. However, limits vary widely by location. If you are over the limit in one area, you may may have access to in another with a lower median income.

Do I need to be below the income limit to stay on Section 8?

You must be below the limit when you are first admitted. After that, most housing authorities allow you to stay for a grace period—usually one year—if your income rises above the limit. Once the grace period ends, you typically must leave the program, though some authorities make exceptions for hardship.

How often do income limits change?

Income limits change once per year, usually in the summer or early fall. Your housing authority recalculates them based on updated area median income data from HUD. If you are already in the program, the new limits typically take effect on October 1, the start of the federal fiscal year.