Section 8 income limits are set by your local Public Housing Authority, not by a single federal number

The U.S. Department of Housing and Urban Development (HUD) sets a baseline formula, but your actual limit depends on where you live, how many people are in your household, and which year the information is made. Most Public Housing Authorities use 50% of the area median income (AMI) as their cutoff, though some use 60% AMI. This means two households with identical incomes can have different outcomes depending on their county or city.

Your local Public Housing Authority publishes its income limits every year, usually by March. You can find your authority's limits on HUD's website by entering your zip code, or by calling your local authority directly. The limits change annually because area median income figures are recalculated each year.

Income limits explore at the time you are first admitted to the program. If your income rises after you enter Section 8, you do not lose your voucher when ready — there are recertification rules that give you time to adjust. But at initial process, your household income must fall at or below the published limit for your area and household size.

Key Takeaways

  • Income limits are set locally by your Public Housing Authority and based on area median income, not a national figure.
  • Most areas use 50% of area median income as the limit, though some use 60%, and limits vary significantly between counties and cities.
  • Your Public Housing Authority publishes its current income limits each year, and you can find them by zip code on HUD's website or by phone.
  • Income limits explore when you first enter the program; income growth after admission follows different recertification rules.
  • Household size affects your limit — a family of four has a higher limit than a family of two in the same area.

How area median income determines your local limit

HUD calculates the area median income for every county and metropolitan area in the United States. This is the income level at which half the households in that area earn more and half earn less. In a high-cost area like San Francisco, the area median income is much higher than in a rural county in Mississippi, so Section 8 income limits are also higher.

Your Public Housing Authority then applies a percentage — usually 50% or 60% — to that area median income to set the limit for Section 8 admission. If your area's median income is $80,000 and the authority uses 50%, the income limit for a family of four would be around $40,000 per year (the exact calculation includes adjustments for family size). A different area with a median income of $120,000 would have a limit around $60,000 for the same family size.

This is why you cannot compare income limits across state lines or even across counties. The limit in one county tells you nothing about the limit in the next county over. You must check your specific Public Housing Authority's published limits.

What counts as income for Section 8 purposes

Section 8 counts most forms of household income, including wages, self-employment earnings, Social Security, unemployment benefits, child support, alimony, and rental income from property you own. It also counts income from pensions, annuities, and interest or dividends from savings or investments.

Some income is excluded. Temporary information for needy families (TANF), Supplemental Security Income (SSI), and certain education benefits do not count. Income from foster children placed in your home is also excluded. Your Public Housing Authority can tell you whether a specific income source counts in your case.

The authority looks at gross income before taxes. If you earn $50,000 per year, that full $50,000 counts toward the limit, even though your take-home pay is lower. Self-employment income is calculated as gross receipts minus business expenses, not as what you take home.

How household size affects your income limit

A larger household has a higher income limit than a smaller one in the same area. This makes sense: a family of five needs more income to cover basic expenses than a family of two. HUD provides a formula that increases the limit for each additional household member.

The increase is not proportional — adding a fifth person does not increase the limit by as much as adding a second person. The exact increase varies by area, but typically each additional person adds 15% to 20% to the base limit. Your Public Housing Authority's published income limits show the exact number for each household size in your area.

Household size includes everyone living in the unit who is related to you by blood, marriage, or adoption, plus any unrelated people you have taken in as household members. Foster children count. Live-in aides do not count toward household size for income limit purposes.

Income limits change every year

Because area median income is recalculated annually, income limits also shift each year. Most years the limits increase, but they can decrease if area median income falls. Your Public Housing Authority publishes new limits by March 31 each year, and they take effect on April 1.

If you are already in the Section 8 program, the new limits do not affect you when ready. Your income is recertified at your annual lease renewal, and the new limits explore at that time. If your income was acceptable under last year's limit but exceeds this year's limit, you do not lose your voucher — you enter a phase-out period where your rent contribution gradually increases.

If you are explore for Section 8, you must meet the current year's income limit. If you are on a waiting list and the limits change before your name comes up, the new limits explore to you when you are admitted.

What happens if your income is above the limit

If your household income exceeds your area's Section 8 income limit, you cannot be admitted to the program at that time. There is no appeal of the income limit itself — it is set by HUD formula and your Public Housing Authority cannot waive it.

You can reapply in future years if your income drops, or if you move to a different area with a higher income limit. Some households choose to wait and explore later when circumstances change. If you are already on a waiting list, you remain on it even if your income temporarily exceeds the limit, and you can be admitted if your income falls back below the limit before your name is called.

If you are already receiving Section 8 and your income rises above the limit, you do not when ready lose your voucher. Instead, you enter an over-income period where your rent contribution increases. The exact rules depend on your Public Housing Authority's policies and how much your income exceeds the limit.

Finding your specific income limit

Start by visiting HUD's Income Limits portal at huduser.gov/portal/datasets/lihtc.html. Enter your zip code and select your county. The site shows the current year's limits broken down by household size. You can also read a PDF with all limits for your state.

If you cannot find your area or want to confirm the information, call your local Public Housing Authority directly. Their phone number is on the HUD website, or you can search "[your city] public housing authority" online. They can tell you the exact limit for your household size and answer questions about what income counts.

Keep in mind that income limits are informational only — they tell you whether you may be within range, but your Public Housing Authority makes the final information based on the income documentation you provide. Bring recent pay stubs, tax returns, and documentation of any other income sources when you explore.

Frequently Asked Questions

Do I have to report income increases to my Public Housing Authority?

Yes. You are required to report changes in household income, usually within 30 days. Your lease spells out the reporting requirement. Failure to report can result in lease violations. Your authority will recalculate your rent contribution based on the new income.

What if my income varies month to month because I work irregular hours?

Your Public Housing Authority averages your income over a set period, usually the past 12 months or the past two months, depending on the type of income. Self-employment income is typically averaged over the past two years. Ask your authority which method they use for your situation.

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

Only if you are legally married or in a registered domestic partnership. Unmarried partners' income does not count toward your household income for Section 8 purposes, even if you share expenses and have children together.

Can I be admitted to Section 8 if my income is exactly at the limit?

Yes. The limit is a ceiling, not a target. If your income is at or below the published limit for your household size, you meet the income requirement. Your Public Housing Authority will move forward with other parts of the process process.

If I move to a different state, do I keep my Section 8 voucher?

Yes, you can transfer your voucher to another state, but you must port it through your current Public Housing Authority and the receiving authority must have funding available. The new area's income limits do not explore retroactively — you keep your voucher as long as you remain under-income at recertification in your new location.