What Is AMI
Area Median Income (AMI) is the midpoint household income for a specific metropolitan area or non-metropolitan county. HUD calculates AMI annually and uses it to establish income eligibility thresholds for Section 8 Housing Choice Voucher programs, as well as other affordable housing initiatives.
For Section 8 purposes, most Public Housing Authorities (PHAs) set income limits at 50% or 80% of AMI, depending on local market conditions and HUD guidance. For example, if your metro area's AMI is $80,000, the 50% limit would be $40,000 and the 80% limit would be $64,000. Your household's gross income must fall below these thresholds to qualify for a voucher or maintain eligibility.
Why It Matters
AMI directly determines whether you qualify for Section 8 assistance. It also affects the payment standard your PHA establishes, which caps how much of the rent the voucher will cover. Because AMI varies by geography, a household earning $50,000 might qualify in one county but not in an adjacent county with a higher AMI.
Landlords need to understand AMI because it shapes which tenant pool can access vouchers in your area. Tenants need it to know whether they're eligible and to understand why income limits differ across regions.
How It Works
- HUD calculates AMI annually: Data comes from U.S. Census Bureau estimates. HUD publishes updated figures by March 31 each year for the fiscal year beginning April 1.
- PHAs set income limits based on AMI percentages: Most PHAs use 50% AMI as the primary eligibility threshold. Some use 80% AMI for higher-income admissions or special programs.
- Income includes all household sources: Wages, self-employment, Social Security, disability benefits, child support, and unearned income all count toward the total. Assets above $5,000 are also converted to imputed income.
- Verification occurs at initial application and recertification: PHAs verify income through tax returns, pay stubs, W-2 forms, bank statements, and third-party documentation.
- AMI changes affect payment standards: When your PHA updates its payment standard annually (tied to AMI), the voucher subsidy amount may increase or decrease, affecting how much tenant rent contribution rises.
Key Details
- AMI figures vary dramatically by location. A metro area in rural Kentucky might have an AMI of $45,000, while the San Francisco Bay Area exceeds $130,000. This creates significant regional variation in Section 8 eligibility and voucher values.
- Income limits are typically updated each fiscal year on April 1. If your income changes significantly, report it to your PHA immediately, as you could become ineligible or entitled to different subsidies.
- Some households remain eligible under "income-limit admission" policies that allow enrollment at higher AMI percentages (such as 80% instead of 50%) during specific periods.
- Earned income disallowances and other deductions may apply, allowing your countable income to fall below your gross income for a limited period.
- Non-citizens must meet citizenship or eligible immigration status requirements regardless of AMI compliance.
Common Questions
- If my income exceeds AMI limits, can I keep my voucher? No. If your income rises above your PHA's limit during annual recertification, your eligibility terminates. However, some PHAs offer earned income disallowances that exclude portions of new employment income for up to 24 months, which may help you remain under the limit temporarily.
- How do I find my area's current AMI? Visit HUD's Income Limits Documentation System at huduser.gov and search by state, county, or metro area. Your PHA's website should also post current income limits. These update each April 1.
- Does AMI change if I move to a different PHA? Yes. Each PHA jurisdiction has its own AMI-based income limits. If you move out of state or to a county with significantly different AMI, your new PHA will re-evaluate eligibility using their local AMI figures.
Related Concepts
Income Limit sets the specific dollar threshold your household must stay under, calculated directly from AMI percentages. Low-Income designates households earning below 80% AMI, the broader category that includes most Section 8 participants.