What Is Extremely Low Income
Extremely Low Income (ELI) means a household's annual gross income is at or below 30% of the area median income (AMI) for your county, or the federal poverty line, whichever is higher. HUD uses AMI to calculate this threshold annually, so the dollar amount changes each year based on your location.
Income Calculations and Thresholds
HUD publishes AMI figures by county each March. A family of four in a high-cost area like San Francisco might qualify as ELI at $35,000 annually, while the same family in a rural county might have a $28,000 threshold. Your PHA (Public Housing Agency) uses these official HUD numbers to determine eligibility for Section 8 vouchers and priority placement on waiting lists.
The federal poverty line serves as a floor. For 2024, the poverty line for a family of four is approximately $31,200. If your county's 30% AMI calculation falls below the federal poverty level, HUD uses the poverty line instead. This ensures consistency across high-income and low-income areas.
Impact on Section 8 Housing Vouchers
ELI households receive priority on most PHA waiting lists. Many PHAs set aside 75% of new voucher allocations for ELI families under HUD's Moving to Work programs. At lease-up, ELI tenants typically pay 30% of adjusted gross income as rent, with the voucher covering the difference up to the Fair Market Rent (FMR) for the unit.
Landlords should understand that ELI tenants may have limited income documentation. Accept recent pay stubs, award letters, or PHA-verified income statements rather than tax returns. Some ELI households rely on SSI, TANF, or other benefit programs that require different verification methods.
HQS Standards and NSPIRE Inspections
Properties leased to ELI households must pass Housing Quality Standards (HQS) inspections under the same requirements as any Section 8 unit. NSPIRE inspection protocols do not change based on tenant income level. However, landlords working with ELI households should budget for unit maintenance, as these tenants may report repair issues promptly when they know inspections are scheduled.
Common Questions
- How often do income limits change? HUD updates ELI thresholds annually each March. Your PHA notifies you of new limits. Tenants already on vouchers are not recertified until their annual review date, but new applicants use current-year limits.
- If a tenant's income rises above 30% AMI, do they lose their voucher? No. Tenants are allowed to exceed the income limit. However, their rent contribution increases if income rises substantially, and they move to the bottom of future rehousing priority lists when renewing vouchers.
- What counts as income for ELI eligibility? Wages, self-employment earnings, Social Security, SSI, TANF, unemployment benefits, child support, alimony, and most other regular cash income count. Child care assistance and food stamps do not. The PHA calculates adjusted income after standard deductions.
Related Concepts
- Very Low-Income (50% of AMI)
- Income Limit