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Fact check: What are the income limits for Section 8 housing in 2025?
Executive Summary
HUD published updated 2025 income limits for the Section 8 Housing Choice Voucher program, effective in spring 2025, with limits defined by three tiers—Extremely Low Income (≤30% of AMI), Very Low Income (≤50% of AMI), and Low Income (≤80% of AMI)—and an average national increase of about 6.2% driven by a change in HUD’s inflation adjustment [1] [2]. Local income limits vary by area and are tied to Area Median Income calculations; HUD’s HOME limits follow the same methodology and took effect in mid-2025 for program use [3].
1. Why 2025 limits rose — an explanation that changes the math
HUD announced a methodological change in calculating income limits in 2025 by replacing the CPI-based inflation adjustment with changes in per-capita wages and salaries, and published the new limits on April 1 and in a May update, yielding an average 6.2% increase across roughly 2,500 areas [2] [1]. This shift in the inflation factor produced higher local income ceilings in many markets because wage growth outpaced consumer-price increases in the prior period, affecting eligibility thresholds for Section 8 and related HOME program calculations that use HUD’s methodology [2] [3]. The practical result is that some households that previously qualified under older limits may face different categorization in 2025.
2. What the three income tiers mean for applicants in 2025
HUD’s 2025 structure retains the familiar three tiers used to determine eligibility: Extremely Low Income (up to 30% of AMI), Very Low Income (up to 50% of AMI), and Low Income (up to 80% of AMI), and the updated limits are effective for voucher determinations and HOME program uses in mid-2025 [1] [3]. The tiers are applied against area-specific AMI estimates, so a household qualifying as “very low income” in one county may not in another; local Public Housing Authorities (PHAs) implement these HUD limits when opening waitlists and selecting households [1] [3]. The HOME program explicitly uses the same methodology to set its income limits, aligning federal definitions across programs [3].
3. Timing and official effective dates you need to know
HUD released the 2025 limits on April 1, 2025, and announced updates effective May 15 and June 1 for related HOME data, meaning the 2025 income limits should be applied by PHAs and HOME program administrators from spring into early summer 2025 [2] [1] [3]. The staggered publication reflects HUD’s multiple data products: an initial HUD income limits release (April 1), a Section 8-specific update effective May 15, and HOME limits effective June 1, all using the new wage-based adjustment [2] [1] [3]. Applicants should check local PHA notices because administrative use dates and waiting-list actions can differ by agency.
4. Local variation and operational impacts — why county-level matters
The national average increase masks substantial local variation: HUD’s changes apply to about 2,500 geographic areas, and eligibility depends entirely on area median income figures that vary widely by region [2] [1]. Several local agencies have already reacted operationally; for example, a county housing agency closed its Section 8 waitlist citing capacity and federal funding constraints, demonstrating that eligibility does not guarantee access if local resources or waitlists are constrained [4]. Applicants must therefore consult their local PHA for specific income cutoffs and current waiting-list status because area limits and program capacity interact [1] [4].
5. Guides, state sites, and third-party summaries — consistent messages and gaps
Consumer-facing guides and state websites repeatedly summarize the HUD rules as general eligibility at or below 50% of AMI for Section 8, while stressing local variation and currently closed waitlists in some jurisdictions; these secondary sources align with HUD’s tier definitions but do not replace local PHA data [5] [6]. The guides correctly convey the typical 50% AMI benchmark for many voucher allocations, but they sometimes omit the technical detail that HUD’s 2025 limits were recalculated using wage changes rather than CPI, a factor that explains why limits moved in many areas [5] [6] [2].
6. What applicants should do now — practical steps based on the 2025 data
Given the 2025 changes, prospective applicants should check HUD’s published income limits for their specific metropolitan area or county and verify which effective date their local PHA uses, and inspect local PHA announcements about waitlist openings or closures that may override eligibility [1] [2] [4]. Because HOME limits mirror HUD’s methodology and took effect in June 2025, developers and housing providers should also confirm which income limits apply to HOME-assisted units when assessing tenant eligibility [3]. Rapid local changes in waitlists mean timing and documentation readiness can be decisive.
7. Bottom line: increased ceilings but access still depends on local practice
HUD’s 2025 revisions raised many local income ceilings on average, reflecting a methodological switch to wage-based adjustments and producing a 6.2% average increase nationally, but actual applicant outcomes hinge on area AMI, PHA practices, funding capacity, and waitlist status—factors that have caused closures in some counties [2] [1] [4]. The data confirm that while more households may technically meet income thresholds under 2025 limits, access to vouchers remains constrained by local implementation, making it essential to consult local PHAs and HUD’s published tables for precise limits and program status [1] [2].