What Is Income Limit
Income limit is the maximum gross annual household income a family can earn and remain eligible for a Section 8 Housing Choice Voucher. Public Housing Authorities (PHAs) set limits at either 50% or 80% of Area Median Income (AMI) for your area. Most programs use 80% AMI as the initial eligibility threshold, though some PHAs restrict 50% AMI households for ongoing assistance.
How Income Limits Work
The PHA calculates your household's gross income before deductions. This includes wages, self-employment income, Social Security, unemployment benefits, child support, and asset income. If your total exceeds the PHA's limit, you don't qualify for a new voucher, though existing voucher holders can continue assistance under "income limit exception" rules (up to two years at the PHA's discretion).
Income limits vary significantly by geography. For example, a family in San Francisco County might face a limit around $98,000 at 80% AMI, while a rural county limit could be $52,000. The HUD updates these annually based on median income data.
Key mechanics:
- Landlords rarely verify income limits directly, but PHAs do during initial eligibility screening and recertification (usually annually)
- Tenants lose voucher eligibility if income exceeds the limit, though hardship exemptions exist
- Self-employed income is averaged over two years to account for fluctuations
- Some asset income is counted if assets exceed $5,000 per household member
- Disabled or elderly households may have separate, higher limits under certain PHAs
Income Limits and Rent Calculations
Income limits don't directly set rent amounts, but they influence tenant rent responsibility. Tenants typically pay the greater of 30% of adjusted income or the PHA's minimum rent (usually $0 to $100). A tenant earning $35,000 pays roughly $875 monthly in rent, while the voucher covers the gap between tenant payment and Fair Market Rent (up to the voucher amount).
Common Questions
- What counts toward the income limit? Gross household income includes all earned income, benefits (except TANF and SSI in most cases), rental property income, and interest. Dependent care and certain disability expenses reduce adjusted income but don't lower the initial limit calculation.
- Can a tenant stay on the voucher if income exceeds the limit? Yes. Existing voucher holders can remain enrolled even if income rises above the limit. However, if they move or the voucher is reissued, they must meet current income limits to qualify again.
- How does the PHA verify income at recertification? PHAs request recent pay stubs, tax returns, benefit letters, and bank statements. If a tenant can't document income, the PHA uses IRS income verification systems or considers the case incomplete, which can result in voucher termination.