In general, most four-person low-income limits are the higher of 80 percent of the area median family income or 80 percent of the State non-metropolitan median family level. Because the very low-income limits are not always based on 50 percent of median, calculating low-income limits as 80 percent of median would produce anomalies inconsistent with statutory intent (e.g., very-low income limits could be higher than low-income limits). The calculation normally used, therefore, is to set the four-person low-income limit at 1.6 (i.e. 80%/50%) times the relevant four-person very low income limit. The only exception is that the resulting income limit may not exceed the U.S. median family income level ($63,800 for FY 2010) except when justified by high housing costs. Use of very low-income limits as a starting point for calculating other income limits tied to Section (3)(b)(2) of the U.S. Housing Act of 1937 has the effect of adjusting low-income limits in areas where the very low-income limits have been adjusted because of unusually high or low housing-cost-to-income relationships.

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.

- The first step in establishing the Low-Income Limit is establishing the preliminary 4-person income limit. This is accomplished by multiplying
the 4-Person Very Low-Income limit by 1.6 (80%/50%). The calculations are as follows:
Area 4-Person

Very Low-Income LimitPreliminary 4-Person

Low-Income Limit**Savannah, GA MSA**$29,500 $47,200 - Next, a comparison is made to ensure that the preliminary 4-Person Low-Income limit is not greater than the U.S. median family income level:
Area US Median Family Income Comparison Result **Savannah, GA MSA**$64,400 Is $47,200 > $64,400? **No**No Adjustment

4 Person LIL

=**$47,200** - Next, a check is made to see if the area qualifies as a High Housing Cost Area. This is similar to the High Housing Cost adjustment made for
Very Low-Income limits. An area's income limit is adjusted due to High Housing Costs if 85% of the area's annual 2 bedroom FMR is greater than
35% of the US Median Income. As we are deriving the Low-Income limit, the 85% of the annual 2-BR FMR is augmented by 1.6:
Area 2BR FMR Annual 2BR FMR Annual 2BR FMR*

1.6*85%35% of US Median Income Comparison Result **Savannah, GA MSA**$815 $9,780 $13,301 $22,540 Is $13,301 > $22,540? **No**No Adjustment

4-Person LIL

=**$47,200**

Subsequent to the comparisons above, 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 Low-Income Limits |
$33,050 | $37,800 | $42,500 | $47,200 | $51,000 | $54,800 | $58,550 | $62,350 |

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