How Section 8 Income Limits Work and What They Mean for Your Household

What the income limit actually is

Section 8 income limits are set by the U.S. Department of Housing and Urban Development (HUD) and vary by location. Your household's gross income — before taxes — is compared against the limit for your area. If your income is at or below that limit, you may be considered for a voucher. If it exceeds the limit, you will not be.

The limit depends on three things: where you live, how many people are in your household, and whether your local housing authority has set a higher limit than HUD's baseline. A family of four in rural Kansas faces a different limit than a family of four in Los Angeles County. The same family's income might disqualify them in one place and keep them in line in another.

HUD updates these limits annually, usually in April. Your local housing authority publishes the current limits for your area on its website or can tell you over the phone. Do not guess based on a national average — call your local authority and ask for the specific limit for your household size in your county or city.

Key Takeaways

• Income limits are set by location and household size, and they change every year, so you must check your local housing authority's current figures rather than relying on old information.
• Gross income — what you earn before taxes and deductions — is what counts, including wages, self-employment income, Social Security, and child support received.
• Some types of income are excluded from the calculation, such as income earned by full-time students under 18 and certain disability benefits, so your actual countable income may be lower than your total earnings.
• If your income exceeds the limit when you first receive a voucher, you can usually keep it, but if your income rises after you are already using the voucher, your rent contribution will increase.
• Housing authorities maintain waiting lists and do not process applications continuously, so even if your income is within the limit today, you may wait months or years before a voucher becomes available.

How your household income is calculated

The housing authority counts gross income from all household members, not just the person applying. This includes wages and salaries, self-employment income, Social Security, SSI, unemployment benefits, child support and alimony received, and income from rental property or investments. If you have a roommate who is not related to you, their income does not count — only people related by blood, marriage, or adoption.

Some income is excluded. Full-time students under 18 do not have their income counted. Certain disability benefits, including Supplemental Security Income (SSI) for some recipients, may be excluded depending on your state's rules. Income from employment programs like TANF (Temporary Assistance for Needy Families) is sometimes excluded. Ask your housing authority which exclusions apply in your area, because they vary.

The housing authority will ask for recent pay stubs, tax returns, and written verification from your employer or benefit provider. If your income is irregular — you work seasonal jobs or are self-employed — they typically average your income over the past two years. If you recently lost a job or had a major change in circumstances, bring documentation of that change and explain it in writing.

What happens if your income is above the limit

If your household income exceeds the limit when you apply, you will not receive a voucher at that time. You cannot reapply immediately; most housing authorities require you to wait a set period — often one year — before submitting another application. Some authorities have different rules, so ask yours what the waiting period is.

If your income drops during that waiting period, you may be able to reapply sooner. Bring documentation of the income change — a termination letter, a new pay stub showing reduced hours, or a letter from your employer. The housing authority will review it and may allow you to reapply before the standard waiting period ends.

If you are already using a Section 8 voucher and your income rises above the limit, you do not lose the voucher. However, your rent contribution will increase. Section 8 calculates your share of rent as 30 percent of your adjusted gross income, so as your income goes up, so does what you pay. The landlord still receives the difference from the housing authority, but your portion grows.

Income limits by household size

HUD publishes income limits in a table format organized by area and household size. The limit for a single person is lower than for a family of two, which is lower than for a family of three, and so on. Most areas have limits for households of one through eight people. If your household is larger than eight, ask your housing authority how they calculate the limit — they typically add a set amount per additional person.

The difference between a one-person and an eight-person household limit can be substantial. In some areas, a single person might have a limit of $35,000 annually while a family of eight might have a limit of $75,000 or more. This is why household composition matters: adding a dependent child or aging parent to your household can raise the income limit you are measured against.

Your housing authority's website should have a table showing the current year's limits. If you cannot find it online, call and ask them to read you the limit for your household size. Write it down and keep it — you will need this number if you reapply or if circumstances change.

How income limits differ by location

HUD calculates income limits based on the area median income (AMI) for each region. High-cost areas like San Francisco, New York, and Washington DC have much higher income limits than rural areas. A family of four might have a $60,000 limit in a rural county and an $85,000 limit in a major metropolitan area.

Within a state, limits can vary significantly from county to county. If you live near a county border, the limit on one side might be noticeably different from the other. If you are considering moving, check the income limits in your destination area before you go — it could affect whether you remain within the limit or whether you would be able to apply if you are currently over.

Some housing authorities serve multiple counties or cities and may have different limits for different parts of their service area. Ask your authority whether they use a single limit for the whole area or separate limits by sub-region. This matters if you are thinking about moving within the same housing authority's service area.

What to do if you are close to the limit

If your income is near the limit, document any exclusions or deductions that might lower your countable income. If you have a full-time student in the household, make sure the housing authority knows — their income will not be counted. If you receive certain disability benefits, ask whether they are excluded in your state. If you pay child support or alimony, that reduces your countable income.

If you are self-employed or have irregular income, ask the housing authority how they will average your earnings. If your income has been declining, provide documentation showing the trend. If you recently experienced a job loss or reduction in hours, bring a letter from your employer or recent pay stubs showing the change. The housing authority has some discretion in how they interpret borderline cases, and providing clear documentation helps.

Keep in mind that even if your income is within the limit, you still need to wait for a voucher to become available. Most housing authorities have long waiting lists. Being within the income limit is necessary but not sufficient — you also have to wait your turn.

Waiting lists and how income limits interact with them

Most housing authorities do not process Section 8 applications on a first-come, first-served basis. Instead, they open their waiting list periodically — sometimes once a year, sometimes less often — accept applications for a set window of time, then close the list. During the closed period, you cannot apply at all, no matter what your income is.

When the list is open, you can apply if your income is within the limit. Your position on the waiting list is usually determined by the date you applied, not by how close your income is to the limit or how much you need housing. Some authorities give priority to people experiencing homelessness, people with disabilities, or people being displaced by redevelopment, but most use date order for everyone else.

Waiting times vary dramatically. In some areas, you might receive a voucher within a year or two. In others, the wait is five, ten, or even fifteen years. During that entire time, your income must remain within the limit. If it rises above the limit before your voucher is issued, you may be removed from the list. Check with your housing authority about their policy on this — some allow income to rise slightly without removal, while others enforce the limit strictly.

Frequently Asked Questions

Does my spouse's income count if we are not married but live together?

No. Only people related by blood, marriage, or legal adoption have their income counted as part of your household. An unmarried partner's income does not count toward the limit. However, if you have children together and they are listed on the lease, their income would count if they are old enough and not full-time students.

What if I am self-employed and my income varies a lot year to year?

The housing authority typically averages your self-employment income over the past two years using your tax returns. If you had a very low-income year followed by a high-income year, they will average them. Bring your last two years of tax returns and be prepared to explain any major swings in earnings.

Can I hide income to stay under the limit?

No. The housing authority verifies income through employers, benefit providers, and tax records. Misreporting income is fraud and can result in removal from the program, loss of your voucher, and potential legal consequences. Report your actual income accurately.

If I get a raise, will I lose my voucher?

No. If you already have a voucher, an income increase does not take it away. Your rent contribution will go up because it is calculated as 30 percent of your adjusted gross income, but you keep the voucher. The housing authority will recalculate your contribution annually based on your current income.

How often do income limits change?

HUD updates income limits annually, usually in April. Your local housing authority should publish the new limits on their website or provide them over the phone. If you are on a waiting list, check the limits each year to make sure your household income has not crossed the threshold.