Most federal and State housing assistance programs set maximum incomes for eligibility to live in assisted housing, and maximum rents and housing costs that may be charged to eligible residents, usually based on their incomes.
The Department of Housing and Community Development (HCD) publishes annual tables of official federal and State income limits for determining these maximums for a variety of programs, including most of those on the web site.
State statutory limits are based on federal limits set and periodically revised by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 Housing Choice Voucher Program. HUD’s limits are based on surveys of local area median income (AMI). The commonly used income categories are approximately as follows, subject to variations for household size and other factors:
- Acutely low income: 0-15% of AMI
- Extremely low income: 15-30% of AMI
- Very low income: 30% to 50% of AMI
- Lower income: 50% to 80% of AMI; the term may also be used to mean 0% to 80% of AMI
- Moderate income: 80% to 120% of AMI
“Affordable housing cost” for lower-income households is defined in State law as not more than 30 percent of gross household income with variations (Health and Safety Code Section 50052.5). The comparable federal limit, more widely used, is 30 percent of gross income, with variations. “Housing cost” commonly includes rent or mortgage payments, utilities (gas, electricity, water, sewer, garbage, recycling, green waste), and property taxes and insurance on owner-occupied housing.
State Income Limit Hold Harmless Policy
In 2013, the California Department of Housing and Community Development (HCD) implemented a State Hold Harmless Policy as a result of the discontinuation of the U.S. Department of Housing and Urban Development’s (HUD’s) long-standing Hold Harmless Policy in 2009. The purpose of HUD’s former Hold Harmless policy was to not allow decreases to county area median income (AMI) and household size income limit figures when annually updating Section 8 income limits.
HCD’s Hold Harmless policy, identical to HUD’s former policy, applies to State and local affordable housing programs statutorily linked to HUD income limits. HCD implements its Hold Harmless Policy upon receipt of HUD’s annual update of Section 8 Program Income Limits and adjusts any current year decreases to retain higher prior year figures.
The State’s Hold Harmless policy supports objectives to preserve and increase the supply of affordable rental housing. Availability of affordable rental housing benefits a broad public and households with different income levels served by affordable housing providers required to comply with Health and Safety Code (H&SC) income limits and affordable rent criteria [H&SC 50093(c)].
FAQs
FY 2024 Section 8 Income Limits (Effective 04/15/2024)
| Number of Persons | Extremely Low Income 30% of Median | Low Income 80% of Median |
|---|
| 1 | $ 29,150 | $ 77,700 |
| 2 | $ 33,300 | $ 88,800 |
| 3 | $ 37,450 | $ 99,900 |
| 4 | $ 41,600 | $ 110,950 |
4 more rowsApr 15, 2024
Based on your annual income, read across the Household size row until you get to the column with the first dollar amount that equals or exceeds the combined annual income of all household members. The first column that equals or exceeds your household income is your AMI level (80%, 100%, 120%, and 150%).
How to calculate income level? ›
Add the gross yearly income for each person in your household to determine your household's total annual income. This number should combine the annual wages and salaries, assets, and other sources of income.
What qualifies as low income in California? ›
Very-Low, Low and Moderate-Income Limits
| Household Size | Very-Low Income | Low-Income |
|---|
| 1 | $11,550 or less | $11,551 - $19,300 |
| 2 | $13,200 or less | $13,201 - $22,050 |
| 3 | $14,900 or less | $14,901 - $24,800 |
| 4 | $16,550 or less | $16,551 - $27,550 |
4 more rowsWhat can cause termination from Section 8 housing? Some common reasons include the tenant (or their guests) engaging in drug-related activity, not paying rent, Page 2 engaging in criminal activity, or violation of terms of the lease, to name a few. Fraud is another reason a recipient may be terminated from the program.
What is considered low income in the US? ›
According to the most recent report from the U.S. Census Bureau, the poverty threshold for a family of four is $29,960. For an individual, the poverty threshold is $14,891.
How is household income determined? ›
Household income is the adjusted gross income from your tax return plus any excludible foreign earned income and tax-exempt interest you receive during the taxable year.
What does 80% of AMI mean? ›
80% of AMI means a Qualified Occupant earning not more than eighty percent (80%) of the Area Median Income and that has been approved by either SCHA or the Town to allow for the execution of the form of approval set forth in Section 11.0 of this Restrictive Covenant.
What is annual income? ›
Annual income is the amount of income you receive each year. Your gross annual income provides a broad view of your earning capacity, while your net annual income dictates your day-to-day budgeting and financial planning.
What are the 4 income levels? ›
The World Bank classifies economies for analytical purposes into four income groups: low, lower-middle, upper-middle, and high income.
Nontaxable income won't be taxed, whether or not you enter it on your tax return. The following items are deemed nontaxable by the IRS: Inheritances, gifts and bequests. Cash rebates on items you purchase from a retailer, manufacturer or dealer.
Does social security count as income? ›
You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an “individual” and your “combined income” exceeds $25,000. Joint return, and you and your spouse have “combined income” of more than $32,000.
What is the income limit for Medi-Cal 2024-2023? ›
EWC 2024 Income Eligibility Guidelines
| Number of Persons in Family/Household | Monthly Gross Household Income | Annual Gross Household Income |
|---|
| 1 | $2,510 | $30,120 |
| 2 | $3,407 | $40,880 |
| 3 | $4,303 | $51,640 |
| 4 | $5,200 | $62,400 |
5 more rowsMar 8, 2024
In five California cities, a $100,000 median household income is considered lower-middle class, according to a Feb. 13 analysis from GoBankingRates.
What is a good salary for a single person in California? ›
But just how much does a single person in California need to make to live comfortably? A new study from Smart Asset determined that a person must make at least $ 89,190 to get by comfortably.
How much will Section 8 pay for a 1 bedroom in California? ›
Payment Standards (Effective Date 1/1/2024)
| Housing Size | Payment Amount |
|---|
| Studio | $1,661 |
| 1 Bedroom | $1,980 |
| 2 Bedroom | $2,496 |
| 3 Bedroom | $3,360 |
2 more rowsAccording to HUD data, there were 2,262,451 vouchers in use across the country as of November 2022. California, New York and Texas have the most, with a combined 687,000 vouchers, according to the data.
How much does Section 8 pay for a 3 bedroom in NY? ›
| Bedroom Size | Payment Standard ($) |
|---|
| 3 | $3,777 |
| 4 | $4,070 |
| 5 | $4,680 |
| 6 | $5,291 |
5 more rowsWill I Qualify for Affordable Housing?
| Household Size | Extremely-Low Income, Not to Exceed: | Moderate Income, Not to Exceed: |
|---|
| 1 person | $30,150 | $107,350 |
| 2 person | $34,450 | $122,700 |
| 3 person | $38,750 | $138,000 |
| 4 person | $43,050 | $153,350 |
4 more rows