HUD Releases Fiscal Year 2016 Income Limits
On March 28, 2016, HUD released Fiscal Year (FY) 2016 income limits. Owners of sites participating in HUD’s Multifamily Housing Programs must utilize these limits when processing move-ins and initial certifications effective March 28, 2016, or later.
Income limits are based on median family incomes (MFIs) adjusted for family size. The estimated FY 2016 MFI for the U.S. is $65,700, which represents a decrease of less than 1 percent from the estimated FY 2015 MFI of $65,800. HUD calculates the FY 2016 MFIs using 2009-2013 five-year American Community Survey (ACS) and Puerto Rico Community Survey (PRCS) data. HUD uses the 2013 one-year ACS survey where it is valid.
Low-income families are defined as families whose incomes do not exceed 80 percent of the median family income for the area. Very low income (VLI) limits for four-person families are calculated as 50 percent of the area median family income, with adjustments for high- and low-cost areas. The FY 2014 Consolidated Appropriations Act defines extremely low-income families as those whose incomes do not exceed the greater of 30 percent of the median family income for areas or the federal poverty guidelines as published by the Department of Health and Human Services. If the federal poverty guideline is above the VLI limit for a given family size, the ELI limit is set at the VLI limit.