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 FY2016 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 Richmond city, Virginia. 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:
ROUNDING NOTE: The 4-person income limit is rounded to the nearest $50 in the case that ceiling or floor adjustments are applied. This is done 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.
The estimated FY2016 Median Family Income and preliminary 4-Person Very Low-Income Limit for Richmond city, Virginia are:
Area | FY 2016 Estimate of Median Family Income |
Preliminary 4-Person Very Low-Income Limit |
---|---|---|
Richmond city, VA | $72,400 | $36,200 |
2BR 40^{th} percentile FMR | 85% of Annualized 2BR FMR | 35% of Preliminary 4P VLIL | Comparison | High Housing Cost Adjustment |
---|---|---|---|---|
$966 | $9,853 | $12,670 | Is $12,670 < $9,853? No |
No 4 Person VLIL = $36,200 |
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 |
---|---|---|---|---|---|---|
$966 * 12 = $11,592 |
$11,592/0.3 = $38,640 |
$52,560 | MAX ($38,640,$52,560)
= $52,560 |
$36,200 | Is $36,200 > $52,560? No | No 4 Person VLIL = $36,200 |
50 Percent of State Non-Metro Median Family Income |
Comparison | State Median Family Income Adjustment |
---|---|---|
$52,300 * 0.5 = $26,150 |
Is $36,200 < $26,150? No |
No 4 Person VLIL = $36,200 |
FY2015 4 Person VLIL | Change | Comparison | Final FY2016 4 Person VLIL |
---|---|---|---|
$37,100 | $36,200 / $37,100 - 1 = -0.024 |
Is -0.024 < -0.05 or > .05?
No |
$36,200 |
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. The resulting low-income limit calculation for other family sizes are then rounded up to the nearest $50. Rounding up ensures that the income limit does not exceed the 5% decrease threshold.
Richmond city, VA requires no further adjustments. Therefore, the final FY 2016 Very Low Income Limits are listed below:
Area | 1-Person | 2-Person | 3-Person | 4-Person | 5-Person | 6-Person | 7-Person | 8-Person |
---|---|---|---|---|---|---|---|---|
Richmond city | $25,350 | $29,000 | $32,600 | $36,200 | $39,100 | $42,000 | $44,900 | $47,800 |
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