The U.S. Housing Act of 1937 requires that HUD set income limits that determine the eligibility of applicants for HUD's assisted housing programs. One of the major active assisted housing programs is the Section 8 Housing Choice Voucher Program (Section 8). HUD's Section 8 Income Limits begin with the production of Median Family Income (MFI) estimates. HUD uses Section 8's FMR area definitions in developing MFI estimates; therefore, HUD develops income estimates for each metropolitan area, parts of some metropolitan areas, and each nonmetropolitan county. HUD calculates Section 8 Income Limits for every FMR area, with adjustments for family size and for areas that have unusually high or low income-to-housing-cost relationships. Numerous other federal, state, and local programs rely on HUD's Income Limits. The most notable of these programs, the Low Income Housing Tax Credit (LIHTC) program, uses a combination of HUD's Section 8 Income Limits and a special set of Income Limits mandated by the 2008 Housing and Economic Recovery Act to determine whether families are eligible to occupy LIHTC units. These income limits also govern the maximum rental rates for LIHTC units.

Note: The status of this project is complete.