Effective April 1, 2020 HUD issued FY2020 income limits to determine eligibility for assisted housing programs including the Public Housing, Section 8 project-based, Section 8 Housing Choice Voucher, Section 202 housing for the elderly, and Section 811 housing for persons with disabilities programs. 

HUD develops annual income limits based on Median Family Income estimates and Fair Market Rent area definitions. The national median family income for the United States for FY 2020 is $78,500, an increase of almost four percent over the national median family income in FY 2019. Income limits are also adjusted according to family size and in areas with unusually high or low incomes relative to housing costs.

The most important statutory provisions relating to income limits are as follows: 

• “very low-income family” is defined as low-income families whose incomes do not exceed 50 percent of the median family income for the area; 

• “low-income family” is defined as those families whose incomes do not exceed 80 percent of the median family income for the area; and

• “extremely low-income family” is defined as a very-low income family whose income does not exceed the higher of the poverty guidelines or 30 percent of the median family income for the area.

The FY20 income limits are also used in programs run by agencies such as the Department of the Treasury, the Department of Agriculture (rural housing), and the Federal Housing Finance Agency (FHFA). Community planning and development programs, as well as HOME investments, also rely on HUD income limits in their administration.

HUD also posted the Multifamily Tax Subsidy Projects (MTSP) Income Limits for FY2020, effective April 1. The MTSP income Limits are used to determine qualification levels, as well as set maximum rents, for projects funded with tax credits or financed with tax exempt housing bonds.