FY 2010 Income Limits Documentation System

FY 2010 Extremely Low-Income (30%) Income Limits Calculation

The Quality Housing and Work Responsibility Act of 1998 established a new income limit standard based on 30 percent of median family income, which was to be adjusted for family size and for areas of unusually high or low family income. A statutory change was made in 1999 to clarify that these income limits should be tied to the Section 8 very low-income limits. The 30 percent income limits, therefore, are calculated as 30/50ths (60 percent) of the Section 8 very low-income limits. They are then compared to Supplemental Security Income (SSI) benefits. Since SSI benefits provide the minimum entitlement income for elderly and disabled households, the one-person 30 percent income limits are increased if they would otherwise be less than the minimum SSI level.

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 12, 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 increase by more than the greater of 5 percent or twice the national average change in median family income and cannot decrease more than 5 percent. For FY2010, the national change in median family income is 0.625 percent, therefore the maximum change amount is 5 percent.

NOTE: Extremely Low-Income Limits are calculated as a function of the Very Low-Income Limits (50% limits). The 50% limits are calculated using with the maximum and minimum change levels. The extremely low-income limits use the change cap implemented in the 50% limits and further change caps are not recalculated.

  1. The first step in establishing the Extremely Low Income Limit is establishing the preliminary 4-person income limit. This is accomplished by multiplying the 4-Person Very Low-Income limit by 0.6 (30%/50%). The calculations are as follows:

    Area 4-Person
    Very Low-Income Limit
    Preliminary 4-Person
    Extremely Low-Income Limit
    Savannah, GA MSA $29,500 $17,700

  2. The 1-Person Income Limit is compared to the Annual Maximum Potential SSI Benefits.

    Area Preliminary 1-Person
    Extremely Low-Income Limit
    70% of 4-Person Limit
    SSI Benefit1 Adjustment
    Savannah, GA MSA $17,700 * .7
    $8,088 Is $8,088 > $12,400?

    1The 2010 SSI Data is taken from www.socialsecurity.gov. The exact page can be accessed through this link.

Subsequent to the comparisons above, Extremely Low-Income Limits are calculated for each person size family between 1 and 8 persons. As is done with the Very Low-Income Limits, the 1 Person Limit is calculated by multiplying the 4-Person limit by 70%, the 2 person is obtained by multiplying the 4-Person limit by 80%, the 3 person by multiplying the 4-Person by 90%, the 5 Person by multiplying the 4-Person by 108%, the 6 Person by multiplying the 4-Person limit by 116%, the 7 Person by multiplying the 4-Person limit by 124%, and the 8-person by multiplying the 4-Person limit by 132%.

Savannah, GA MSA
Income Limit 1-person 2-person 3-person 4-person 5-person 6-person 7-person 8-person
FINAL FY2010 Extremely Low-Income Limits $12,400 $14,200 $15,950 $17,700 $19,150 $20,550 $21,950 $23,400

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