The 4-person Very Low-Income Limit (VLIL) is based on 50% of the median family income estimated for the
**Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area**. 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:

**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);**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);**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,

Lastly, in order to minimize program management problems, HUD has devised and implemented a **Hold Harmless** policy. That is, income limits will be
held at FY 2007 levels for areas where lower income limits would result because of the decreases in median family income estimates
(or FMR estimates in areas with the high housing cost adjustment).

**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 estimated FY2008 Median Family Income and preliminary 4-Person Very Low-Income Limit for Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area are:

Area | FY 2008 Estimate of Median Family Income |
Preliminary 4-Person Very Low-Income Limit |
---|---|---|

Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area |
$68,400 | $34,200 |

- 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 **Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area**$805 $8,211 $11,970 Is $11,970 < $8,211 **No****No**

4 Person VLIL

=**$34,200** - 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 **Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area**$805 * 12

=

$9,660$49,200 $10,260 Is $10,260 > $9,660 **Yes**

Is $34,200 > $49,200**No****No**

4 Person VLIL

=**$34,200** - State non-metro Median Family Income Adjustment
Area 50 Percent of State Non-Metro

Median Family IncomeComparison State Median Family Income Adjustment **Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area**$50,200 * 0.5

=

$25,100Is $34,200 < $25,100 **No****No**

4 Person VLIL

=**$34,200**

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.

Although the Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area received **No Adjustments**
as calculated above, the preliminary Income Limit Value of $34,200 is not the final 4-person Income Limit of
$34,950. Consequently, the final 4-Person Income Limits associated with Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area are subject to a Hold Harmless condition as well.

FY 2008 Hold Harmless Comparison | ||||||||
---|---|---|---|---|---|---|---|---|

Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area | ||||||||

Income Limit Information | 1-Person | 2-Person | 3-Person | 4-Person | 5-Person | 6-Person | 7-Person | 8-Person |

FY 2008 Prelim VLIL | $23,950 | $27,350 | $30,800 | $34,200 | $36,950 | $39,650 | $42,400 | $45,150 |

FY 2007 Final VLIL | $24,450 | $27,950 | $31,450 | $34,950 | $37,750 | $40,550 | $43,350 | $46,150 |

Hold Harmless Required? | Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |

FY 2008 VLILFINAL |
$24,450 |
$27,950 |
$31,450 |
$34,950 |
$37,750 |
$40,550 |
$43,350 |
$46,150 |

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