HUD released their income limits for 2025, which determine eligibility for HUD-assisted programs, including:
- Vouchers (Public Housing, Section 8 project-based, Section 8 Housing Choice);
- Section 202 housing for the elderly;
- Section 811 housing for persons with disabilities programs; and
- Multifamily Tax Subsidy Project (MTSP) income limits (eligibility for LIHTC & tax-exempt private activity bond (PAB)-financed properties).
What’s New: Starting with the 2025 data and going forward, HUD is using the change in per capita wage and salary as the inflation factor for income limits instead of using the Consumer Price Index (CPI), which has been in effect since 2015
- This switch increases the inflation factor and yielded an average increase in income limits at 6.2 percent, which is higher than the changes in previous years based on the old methodology.
The new income limits are effective immediately.
HUD applies a limit to how much the income limit for an area can change in any given year. The cap on income limit increases is limited to the greater of two times the change in national median income or five percent, with a ceiling of ten percent. The national median income changed by 4.6 percent from 2022 to 2023, which resulted in a cap of 9.2 percent. Twenty-seven percent of areas are subject to the 9.2 percent cap.
