FY 2010 Income Limits Documentation System

FY 2010 Very Low-Income (50%) Income Limits Calculation

The Income Limits explained on this page are not for use with Multifamily Tax Subsidy Projects (IRC section 42 and 142 projects). Users interested in these programs should visit the FY2010 Multifamily Tax Subsidy Project Documentation System.

The 4-person Very Low-Income Limit (VLIL) is based on 50% of the median family income estimated for the Savannah, GA MSA. For a discussion, of the estimated median family income please read here.

Once the median family income is estimated and a preliminary 4-person Very Low-Income Limit is calculated (as 50% of median family income) a series of comparisons required by statute are made:

  1. High Housing Cost Adjustment: The 4-Person VLIL is increased if it would otherwise be less than the amount at which 35 percent of it equals 85 percent of the annualized two-bedroom Section 8 FMR (this adjusts income limits upward for areas where rental housing costs are unusually high in relation to median income);

  2. Low Housing Cost Adjustment:The 4-Person VLIL is reduced to the greater of 80 Percent of the U.S. median family income level, or the amount at which 30 percent of it equals 100 percent of the two-bedroom FMR (this adjusts income limits downward for areas of unusually high median family incomes);

  3. State Non-Metro Median Family Income Adjustment: The 4-Person VLIL is also adjusted if it would otherwise be lower than 50% of the State Non-Metro Median Family Income; and,

New for FY2010, HUD has discontinued its use of the hold harmless policy that has been in place for several years. For further information, please review our Federal Register Notice, released May 14, 2010. However, in order to minimize program management problems, HUD has devised and implemented a set of maximum and minimum changes for income limits. Consequently, the FY2010 Income Limits cannot change more than the greater of 5 percent or twice the national average change in median family income. For FY2010, the national change in median family income is 0.625 percent, therefore the maximum change amount is 5 percent.

NOTE: Income Limits are rounded to the nearest $50 and in order to make it easier for those wishing to replicate HUD's calculations, the rounded 4-person income limit is used to calculate other family size income limits instead of the unrounded 4-person income limit.


The results of the 4-Person Very Low-Income Limit Calculation Process

Savannah, GA MSA Results

The estimated FY2010 Median Family Income and preliminary 4-Person Very Low-Income Limit for Savannah, GA MSA are:

Area FY 2010 Estimate of
Median Family Income
Preliminary 4-Person
Very Low-Income Limit
Savannah, GA MSA $59,000 $29,500

  1. The High Housing Cost adjustment calculations follow:

    Area 2BR FMR 85% of Annualized 2BR FMR 35% of Preliminary 4P VLIL Comparison High Housing Cost Adjustment
    Savannah, GA MSA $815 $8,313 $10,325 Is $10,325 < $8,313
    No
    No
    4 Person VLIL
    =
    $29,500

  2. The Low Housing Cost adjustment calculations follow:

    Area Annualized 2BR FMR 80% of US Median Income 30% of Preliminary 4P VLIL Comparisons Low Housing Cost Adjustment
    Savannah, GA MSA $815 * 12
    =
    $9,780
    $51,520 $8,850 Is $8,850 > $9,780
    No
    Is $29,500 > $51,520
    No
    No
    4 Person VLIL
    =
    $29,500

  3. State non-metro Median Family Income Adjustment

    Area 50 Percent of State Non-Metro
    Median Family Income
    Comparison State Median Family Income Adjustment
    Savannah, GA MSA $46,400 * 0.5
    =
    $23,200
    Is $29,500 < $23,200
    No
    No
    4 Person VLIL
    =
    $29,500

Once the final 4-Person income limit has been established, calculation of income limits for other family sizes is straight-forward. The 1-Person family Income Limit is 70% of the 4-Person Income Limit. The 2-Person family Income Limit is 80% of the 4-Person Income Limit, the 3-Person family Income Limit is 90% of the 4-Person Income Limit, the 5-Person Income Limit is 108% of the 4-Person Income Limit, the 6-Person Family Income Limit is 116% of the 4-Person Income Limit, the 7-Person family Income limit is 124% of the 4-Person Income Limit, and the 8-Person Family Income Limit is 132% of the 4-Person Income Limit. For family sizes larger than 8 persons, the income limit can be calculated by adding an additional eight (8) percent per person to the next lower limit. For example a 9-Person Family Income Limit is 140% (132% + 8%), and so on.

Income Limits are rounded to the nearest $50 and in order to make it easier for those wishing to replicate HUD's calculations, the rounded 4-person income limit is used to calculate other family size income limits instead of the unrounded 4-person income limit.

Savannah, GA MSA requires no further adjustments. Therefore, the final FY 2010 Very Low Income Limits are listed below:

FY 2010 Very-Low Income Limits
Savannah, GA MSA
AREA 1-Person 2-Person 3-Person 4-Person 5-Person 6-Person 7-Person 8-Person
Savannah, GA MSA $20,650 $23,600 $26,550 $29,500 $31,900 $34,250 $36,600 $38,950


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