Section 8 Housing Choice Voucher eligibility hinges on one question: is your household income at or below the Low Income limit for your area? The answer is published every year by HUD, but getting from the HUD table to your household's eligibility is more nuanced than a single row of numbers suggests. Here is the whole picture, laid out plainly.

The three HUD income tiers

HUD publishes three income thresholds, all based on Area Median Income (AMI):

• Extremely Low Income (ELI), ≤30% of AMI, or the federal poverty line, whichever is higher.
• Very Low Income (VLI), ≤50% of AMI. This is the basic Section 8 eligibility threshold.
• Low Income (LI), ≤80% of AMI. A broader cap used for some HUD programs and for preservation of eligibility after a voucher is issued.

For Section 8 HCV, the initial eligibility bar is Low Income (80% AMI). However, at least 75% of newly issued vouchers must go to ELI households, so in practice, households close to the LI ceiling almost never receive a voucher.

What is Area Median Income?

AMI is the median household income for the metropolitan area (CBSA) or HUD Metro FMR Area (HMFA) where you live. It is not a national number. San Francisco's AMI is roughly $150K for a family of four; rural Mississippi's is closer to $55K. The same "50% of AMI" threshold therefore produces very different dollar amounts.

AMI is adjusted each year using the American Community Survey, then further adjusted for family size (smaller families have lower limits; larger families have higher).

Household-size adjustments

HUD's tables publish income limits for household sizes 1 through 8. A 1-person limit is 70% of the 4-person limit; a 2-person is 80%; a 3-person is 90%; and each additional person above 4 adds 8%. So a family of six in a metro with a $60,000 VLI-4 limit has a VLI-6 limit of approximately $69,600.

What counts as "income"?

HUD's definition is broad. Countable income includes:

• Wages, salaries, tips, commissions, and self-employment net income
• Social Security (retirement, survivors, disability, SSI is also counted)
• Pensions, annuities, retirement account distributions
• Unemployment insurance, worker's compensation
• Alimony and child support (if actually received)
• Interest, dividends, and imputed income from assets over $50,000
• Cash assistance (TANF and state programs)
• Regular cash gifts from outside the household

What does NOT count?

• Income of live-in aides
• Foster care payments
• Income of minors (children under 18) from employment
• Medical expense reimbursements
• Educational scholarships and grants used for tuition
• Earned Income Tax Credit (EITC) refunds
• SNAP (food stamp) benefits
• Lump-sum inheritances or insurance payouts

Gross vs. adjusted income

Eligibility is tested against gross income, the total before deductions. The monthly rent portion you pay, once you have a voucher, is calculated against adjusted income, which subtracts:

• $480 per dependent
• $400 for elderly or disabled households
• Unreimbursed medical expenses exceeding 3% of gross income (for elderly / disabled)
• Disability-related care expenses allowing a household member to work
• Reasonable child-care expenses allowing a household member to work or attend school

Looking up your limit

Find the current HUD income limit for your area on our Income Limits directory or at huduser.gov. You will need to know your county, your CBSA (metro area), and your household size.

If you are close to the cutoff

Edge cases matter. If you are within a few thousand dollars of the Very Low Income threshold, work through the deductions above before concluding you are ineligible. Many households discover that what they thought was "too much income" is actually gross income before allowable subtractions that a PHA will apply at eligibility interview.

Related guides

• How to Apply for Section 8
• Payment Standards vs. Fair Market Rent
• Waitlist Strategy

Source: HUD USER Income Limits (FY25), 24 CFR §5.609 (definition of annual income). Last reviewed April 15, 2026 HUD USER Income Limits (FY25), 24 CFR §5.609 (definition of annual income). Last reviewed April 15, 2026

Quick reference, income tiers and adjustments

HUD income-tier glossary

Tier	Threshold	Voucher access
ELI	≤ 30% AMI	75% of new vouchers reserved
VLI	≤ 50% AMI	Standard eligibility tier
LI	≤ 80% AMI	Eligibility ceiling
AI	Adjusted Income	Gross income minus statutory deductions

Worked example, adjusted-income math

A household of three with one earner ( 8,000 gross), one child under 18, and $400 monthly child-care expenses ($4,800 annually): Adjusted Income equals 8,000 − $480 (one dependent at $480) − $4,800 (child care) = 2,720. Rent contribution is the greater of 30% of monthly Adjusted Income ($568) or 10% of gross monthly income ( 33), meaning $568 monthly tenant rent share.

Statutory deductions cheat-sheet

Subtract from gross income: $480 per dependent under 18 or full-time student; $400 elderly/disabled household head allowance; qualifying medical expenses above 3% of gross (elderly/disabled households only); reasonable child-care costs that enable employment or education; disability-assistance expenses for family members.

Common pitfalls and edge cases

Eligibility uses Adjusted Income, not gross. Deductions can shift you a full tier.

Cross-reference with our payment-standards guide and the income-limits lookup.