What are the HUD income limits and how are they determined?

At the end of every year, the U.S. Department of Housing and Urban Development calculates and distributes the following year’s Income Limit Summary for every town that receives CDBG funds. This summary is based upon an area’s median income and is used to determine the household income levels that will qualify (or disqualify) individuals and families for programs funded by CDBG, like the Housing Rehabilitation Program. Example #1 Mrs. Jones is the sole owner of her residence and has two children who live there full-time. Mrs. Jones earned $52,000 last year. The HUD income limit for a three person household is $59,250. In this example Mrs. Jones DOES MEET the income requirement for the Housing Rehabilitation Program. Example #2 Mr. and Mrs. Smith are the joint owners of their residence and have no children. Mr. Smith earned $32,000 last year and Mrs. Smith earned $36,000 for a combined household income of $68,000. The HUD income limit for a two person household is $52,650. In this example, Mr. and Mrs. Jones DO NOT meet the income requirement for the Housing Rehabilitation Program.