HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs
Figure 3-2: Income Limits
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
All of these income limits are based on the median income for a metropolitan statistical area (MSA). This table shows the four income limits as a percentage of median income in an MSA.
| Figure 3-2: Income Limits | |
|---|---|
| All of these income limits are based on the median income for a metropolitan statistical area (MSA). This table shows the four income limits as a percentage of median income in an MSA. |
|
| Income Limit Median Income for the Area |
|
| BMIR income limit | 95% of median income |
| Low-income limit | 80% of median income |
| Very low-income limit | 50% of median income |
| Extremely low-income limit |
30% of median income |
Section 8 Income Eligibility. Section 8 properties, depending upon the effective date of the initial Housing Assistance Payments (HAP) contract for the property, use either the low or very low-income limit.
a. Section 8 property owners must use the extremely low-income limit when selecting applicants to fulfill the income-targeting. (See paragraphs 4-5, 4-15, and 4-25.)
b. Projects with HAP contracts initially effective on or after October 1, 1981, must admit only very low-income families unless HUD has approved an exception to admit families whose incomes are above the very low-income limit.
c. Projects with HAP contracts initially effective prior to October 1, 1981, may admit families up to the low-income limit.
NOTE: Exceptions to income limits may be applicable under limited circumstances. See paragraph 3-7.
Section 236, Rent Supplement, and Rental Assistance Payment (RAP). These programs use the low-income limit to establish program eligibility.
Section 202 without assistance. Use the Section 236 low-income limit from the table of Income Limits for Section 221(d)(3) BMIR, Section 235 and Section 236 programs to establish program eligibility, with the following two exceptions:
- a. Section 202 projects for which the application was filed prior to December 15, 1962 are not subject to income limits
HUD Occupancy Handbook Chapter 3: Eligibility for Assistance and Occupancy
6/07
3-6
Section 1: Program Eligibility
4350.3 REV-1
- b. For Section 202 projects where income limits above the lowincome limit were approved by HUD prior to July 21, 1972, the approved higher income limits remain in effect for these projects.
Section 202/162 with Project Assistance Contracts (Section 202 PACs). These contracts use the low-income limit.
Section 202/811 with Project Rental Assistance Contracts (Section 202/811 PRACs). These assistance contracts use the very low-income limit (except properties funded in FY 1995, which use the low-income limit). Owners must receive approval from HUD Headquarters to admit families whose incomes are above the very low-income limit. (See paragraph 3-8.A.3 and 3-20.G.)
Section 221(d)(3) BMIR. This program uses the BMIR income limit, which is set at 95% of the area median income.
Summary. Refer to Figure 3-3 for a summary of the income limits used to determine eligibility for each program.
Projects with more than one type of subsidy. In projects with a combination of subsidy types, such as Section 221(d)(3) BMIR and Section 236 projects that also have Section 8 in a portion of the property, owners must use the eligibility income limit based on the type of assistance provided to the family. For example, applicants for a Section 236 project that receive Section 8 must qualify using the applicable Section 8 income limit.
HUD Occupancy Handbook Chapter 3: Eligibility for Assistance and Occupancy
06/09
3-7
Section 1: Program Eligibility
4350.3 REV-1
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