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 FY2018 Multifamily Tax Subsidy Project Documentation System.
The 4person Very LowIncome Limit (VLIL) is based on 50% of the median family income estimated for the $inputname$. For a discussion of the estimated median family income please read here.
Once the median family income is estimated and a preliminary 4person Very LowIncome Limit is calculated (as 50% of median family income) a series of comparisons required by statute are made:
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 4person income limit is used to calculate other family size income limits instead of the unrounded 4person income limit.
The estimated FY2018 Median Family Income and preliminary 4Person Very LowIncome Limit for
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Area  FY 2018 Estimate of Median Family Income 
Preliminary 4Person Very LowIncome Limit 

2BR 40^{th} percentile FMR  85% of Annualized 2BR FMR  35% of Preliminary 4P VLIL  Comparison  High Housing Cost Adjustment 

Is < ? No 
No 4 Person VLIL = 
Annualized 2BR 40^{th} percentile FMR  Income that can afford annualized 2BR FMR paying 30% for rent  80% of US Median Income  Maximum allowable 4P VLIL  Preliminary 4P VLIL  Comparison  Low Housing Cost Adjustment 

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No 4 Person VLIL = 
FY2017 4 Person VLIL  Change  Comparison  Final FY2018 4 Person VLIL 

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Once the final 4Person income limit has been established, calculation of income limits for other family sizes is straightforward. The 1Person family Income Limit is 70% of the 4Person Income Limit. The 2Person family Income Limit is 80% of the 4Person Income Limit, the 3Person family Income Limit is 90% of the 4Person Income Limit, the 5Person Income Limit is 108% of the 4Person Income Limit, the 6Person Family Income Limit is 116% of the 4Person Income Limit, the 7Person family Income limit is 124% of the 4Person Income Limit, and the 8Person Family Income Limit is 132% of the 4Person 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 9Person Family Income Limit is 140% (132% + 8%), and so on.
4Person Income Limits are rounded to the nearest $50, subject to caps and floors. All other Income Limits are rounded up to the nearest $50 to ensure that they do not violate the 5% floor. Also, in order to make it easier for those wishing to replicate HUD's calculations, the rounded 4Person income limit is used to calculate other family size income limits instead of the unrounded 4Person income limit.
Because HUD no longer enforces the Hold Harmless Policy from past years, HUD determined that allowing income limits to fall precipitously was not in the best interests of managing the section 8 housing choice voucher program. Therefore, as stated above, the maximum decrease that can be experienced in any area in one year is 5%.
The table below depicts the unrestricted income limits for FY2018, the limits allowed under HUD's floor and ceiling, and the final FY2018 Income Limits.
FY 2018 Income Limit Change Comparison  

Income Limit Information  1Person  2Person  3Person  4Person  5Person  6Person  7Person  8Person 
FY 2018 Prelim VLIL  
FY 2017 VLIL  
Maximum Change (5.0%) from FY 2017 Final VLIL 

Floor Required?  No  No  No  No  No  No  No  No 
FY 2018 FINAL VLIL 
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