What are income limits?

Income limits are the maximum annual earnings a household can have to qualify for federal low-income housing programs. The U.S. Department of Housing and Urban Development (HUD) sets these thresholds annually, and they differ by county and metropolitan area in Texas based on local median income levels.

HUD recognizes three income categories for housing assistance. Extremely low income is generally 30 percent of area median income (AMI) or less. Very low income ranges from 31 to 50 percent of AMI. Low income extends up to 80 percent of AMI. These percentages create eligibility boundaries that vary significantly across Texas counties. For example, income limits in Harris County differ from those in a rural county like Coke or Culberson.

Household size directly affects where the threshold falls. A single person, a family of four, and a family of eight will each have different maximum income limits, even within the same county. Larger households can earn more while remaining eligible because HUD assumes greater expenses for more people.

Understanding income limits matters because they control access to rental assistance, affordable housing developments, and down payment help. Housing program providers in Texas use these limits to screen applicants. If a household's income exceeds the limit for their area and size, they do not qualify, even if they need assistance.