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 FY2012 Multifamily Tax Subsidy Project Documentation System.
The 4-person Very Low-Income Limit (VLIL) is based on 50% of the median family income estimated for the Newark,%20NJ%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:
As of 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 14, 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 FY2012 Income Limits cannot change more than the greater of 5 percent or twice the national average change in median family income. For FY2012, the national change in median family income is -0.923 percent, therefore the maximum change amount is 5 percent.
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 FY2012 Median Family Income and preliminary 4-Person Very Low-Income Limit for Newark,%20NJ%20HUD%20Metro%20FMR%20Area are:
|Area||FY 2012 Estimate of
Median Family Income
Very Low-Income Limit
|Area||2BR FMR||85% of Annualized 2BR FMR||35% of Preliminary 4P VLIL||Comparison||High Housing Cost Adjustment|
4 Person VLIL
|Area||Annualized 2BR FMR||80% of US Median Income||30% of Preliminary 4P VLIL||Comparisons||Low Housing Cost Adjustment|
|Newark,%20NJ%20HUD%20Metro%20FMR%20Area|| * 12
4 Person VLIL
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.
4-Person 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 4-Person income limit is used to calculate other family size income limits instead of the unrounded 4-Person income limit.
Although the Newark,%20NJ%20HUD%20Metro%20FMR%20Area received No Adjustments as calculated above, the preliminary Income Limit Value of is not the final 4-person Income Limit of . Consequently, the final 4-Person Income Limits associated with Newark,%20NJ%20HUD%20Metro%20FMR%20Area are subject to HUD's floor on the annual change in Income Limits.
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 FY2012, the maximum limits allowed at 5.0%, and the final FY2012 Income Limits.
|FY 2012 Income Limit Change Comparison|
|Income Limit Information||1-Person||2-Person||3-Person||4-Person||5-Person||6-Person||7-Person||8-Person||FY 2012 Prelim VLIL||FY 2011 VLIL||Maximum Change (5.0%) from
FY 2011 Final VLIL
|Floor Required?||No||No||No||No||No||No||No||No||FY 2012 FINAL VLIL|
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