Income Eligibility for Section 8: How to Qualify in 2025
Are you wondering if you qualify for Section 8 housing assistance? Understanding income eligibility requirements is the first step toward securing affordable housing through this valuable program. This comprehensive guide breaks down exactly how Section 8 income limits work, how to determine if you qualify, and what to expect during the application process.
What is Section 8 Housing Assistance?
The Housing Choice Voucher Program (commonly known as Section 8) is a federal program managed by the U.S. Department of Housing and Urban Development (HUD). The program helps low-income families, elderly individuals, and people with disabilities afford safe and decent housing in the private market.
With a Section 8 voucher, you typically pay about 30% of your income toward rent, and the program covers the rest. But before you can receive this assistance, you need to meet specific income requirements.
Understanding Income Categories for Section 8 Eligibility
HUD divides income eligibility into three main categories based on the Area Median Income (AMI) where you live:
- Extremely Low Income – Household income at or below 30% of AMI
- Very Low Income – Household income at or below 50% of AMI
- Low Income – Household income at or below 80% of AMI
While all three categories may qualify for various HUD programs, Section 8 Housing Choice Vouchers are primarily available to families in the Extremely Low Income (30% AMI) and Very Low Income (50% AMI) categories. By law, 75% of all new vouchers must go to families in the Extremely Low Income category.
Learn more about the steps to apply for Section 8
What Counts as Income for Section 8?
When calculating your eligibility, HUD considers your gross income (before taxes) from all sources, including:
- Wages and salaries from jobs
- Self-employment earnings
- Social Security benefits
- SSI and SSDI payments
- Pension income
- Unemployment benefits
- Child support and alimony
- Regular gifts or contributions
- Investment income
Find out about the differences between SSDI and SSI
How to Find Your Area Median Income (AMI)
The Area Median Income is the midpoint of a region’s income distribution – half the households earn more and half earn less. HUD updates these figures annually based on data from the American Community Survey. Your eligibility depends on how your household income compares to the AMI for your specific location.
To find the current AMI figures for your area:
- Visit the HUD Income Limits Documentation System
- Select the most recent fiscal year
- Choose your state and county or metropolitan area
- Review the income limits chart for your household size
How to Calculate Your Income Percentage of AMI
Once you have the AMI information for your area, you can determine where your household falls:
- Find your household size in the top row of the income limits chart
- Look down that column to see the maximum income for each category
- Compare your gross annual household income to these figures
- The row where your income falls indicates your AMI category (30%, 50%, or 80%)
For example, if you’re in a 4-person household with an annual income of $25,000, and the chart shows that the 30% AMI limit for a 4-person household is $26,500, you would fall into the Extremely Low Income category.
Income Adjustments and Deductions
Your actual eligibility is based on your adjusted income, not your gross income. HUD allows several deductions that can lower your countable income:
- Elderly/Disabled Deduction: $400 annually if the head of household or spouse is 62+ or has a disability
- Dependent Deduction: $480 annually for each dependent (under 18, full-time student, or person with disability)
- Childcare Expenses: Reasonable childcare costs that allow a family member to work or attend school
- Disability Assistance Expenses: Costs for care or equipment that allows a family member with disabilities to work
- Medical Expenses: For elderly or disabled families, medical expenses exceeding 3% of annual income
These deductions can significantly lower your adjusted income, potentially making you eligible even if your gross income seems too high.
Learn about housing programs for people with disabilities
Calculating Your Expected Rent Contribution
If you qualify for Section 8, your rent contribution is typically calculated as:
- Calculate your adjusted annual income (gross income minus allowable deductions)
- Divide by 12 to get your adjusted monthly income
- Calculate 30% of your adjusted monthly income
- This amount is your expected rent contribution
The housing authority pays the difference between your contribution and the approved rent for your unit, up to the local payment standard.
Example Calculation
Let’s say your household has:
- Gross annual income: $24,000
- One dependent ($480 deduction)
- Elderly head of household ($400 deduction)
Adjusted annual income: $24,000 – $480 – $400 = $23,120 Adjusted monthly income: $23,120 ÷ 12 = $1,927 Your monthly rent contribution: $1,927 × 30% = $578
In this example, you would pay $578 per month toward rent, and the Section 8 program would pay the difference between that amount and the approved rent for your unit.
Minimum Rent Requirements
Some Public Housing Authorities (PHAs) establish a minimum rent requirement between $25 and $50 per month, even if 30% of your adjusted income would be less than this amount. However, hardship exemptions are available for families experiencing financial difficulties.
Find out about emergency housing options
Maximum Rent Payments (Payment Standards)
Each PHA sets payment standards based on Fair Market Rents in the area. These standards determine the maximum amount the PHA will pay toward your rent. The payment standard is not a limit on the amount of rent a landlord may charge but rather on the amount of assistance a family can receive.
Learn about becoming a Section 8 landlord
Income Changes After Receiving a Voucher
If your income changes after you receive a Section 8 voucher, you must report these changes to your PHA. Income increases may result in higher rent contributions, while decreases may lower your portion of the rent. Failure to report income changes can result in:
- Retroactive rent charges
- Loss of voucher
- Requirement to repay benefits
- Potential legal consequences
Common Questions About Section 8 Income Eligibility
Can I work full-time and still qualify for Section 8?
Yes, many working families qualify for Section 8 assistance. Eligibility is based on total household income compared to the AMI, not employment status. In fact, most Section 8 participants are working families, elderly, or people with disabilities.
Will receiving other benefits affect my Section 8 eligibility?
Benefits like SNAP (food stamps), Medicaid, and TANF are not counted as income for Section 8 eligibility. However, cash benefits like Social Security, SSI, and unemployment are counted.
Learn about the difference between SNAP and WIC programs
How often is my income reviewed after I get a voucher?
PHAs typically review income and family composition annually through a recertification process. However, you must report significant income changes when they occur, not just at annual reviews.
Can I have savings and still qualify for Section 8?
Yes, but assets may affect eligibility. Interest or dividends earned from assets are counted as income. Additionally, if your total assets exceed $5,000, HUD will count either the actual income earned or a percentage of the asset value (whichever is greater).
What if my income increases after I get a voucher?
If your income increases, your rent contribution will increase accordingly. However, you won’t immediately lose your voucher. Most PHAs allow participants to remain in the program until their income reaches 80% AMI or their rent contribution equals the full rent amount.
Learn how to add someone to your Section 8 voucher
Tips for Applying to Section 8 with Income Concerns
- Be accurate and honest – Providing false information can result in denial of assistance and potential legal consequences
- Document everything – Keep records of all income sources, including pay stubs, benefit award letters, and bank statements
- Ask about local preferences – Some PHAs give preference to working families, even those with higher incomes (within limits)
- Consider all deductions – Make sure to claim all legitimate deductions to lower your adjusted income
- Be prepared for verification – PHAs will verify your income through third-party sources including employers and government agencies
Learn how to check your Section 8 application status
Alternative Housing Assistance Programs
If your income is too high for Section 8 but you still need housing assistance, consider these alternatives:
- Public Housing – Available for low-income families with slightly higher income limits
- Low-Income Housing Tax Credit (LIHTC) properties – Affordable units with income limits up to 60% AMI
- Section 202 – Housing for seniors with varying income limits
- State and local programs – Many areas offer additional housing assistance programs
Learn about affordable housing common questions and answers
Conclusion
Understanding Section 8 income eligibility requirements is crucial for accessing this valuable housing assistance program. By knowing how to calculate your AMI percentage, applying appropriate deductions, and preparing the right documentation, you can determine if you qualify and successfully navigate the application process.
Remember that even if your income seems too high at first glance, deductions might bring you within eligible limits. And if you don’t qualify for Section 8, other housing assistance programs might better fit your situation.
If you have questions about your specific situation, contact your local Public Housing Authority for personalized guidance. They can provide information about current income limits, available vouchers, and alternative programs in your area.