Published: May 1, 2026
After a month-long delay, the U.S. Department of Housing and Urban Development (HUD) has officially released the Fiscal Year 2026 Income Limits today, May 1, 2026. These limits are used to determine eligibility for a wide range of federal housing assistance programs — including Public Housing, Section 8 (Housing Choice Voucher), HOME, LIHTC (Low-Income Housing Tax Credits), and more.
Here’s what affordable housing professionals, developers, owners, and compliance teams need to know right away.
Why Were the Limits Delayed?
The FY 2026 income limits were originally scheduled for release on April 1, 2026. However, the Census Bureau delayed its release of the 2024 American Community Survey (ACS) 5-year data — a key input in HUD’s income limit calculations — from December 11, 2025 to January 29, 2026. That delay was caused by the fall 2025 government shutdown. As a result, HUD pushed its release date back by one month.
The wait is over: the new FY 2026 Income Limits are effective May 1, 2026.
What’s New for FY 2026?
Average Increase of ~4%
Based on pre-release estimates, the average change in the Very Low Income (VLI) limit — the key threshold used across most HUD programs — is approximately 4% nationally. That said, local variation is significant, so be sure to look up the specific limits for your areas.
Cap Set at 10%
HUD applies an annual cap on how much income limits can increase in a single year. For FY 2026, the cap is 10%, calculated as two times the 5.046% change in the national median family income based on 2024 ACS data. This means no area’s Very Low Income limit can increase by more than 10% from FY 2025.
Importantly, HERA Special Income Limits are not subject to this cap and may exceed 10% in certain qualified areas.
Far Fewer Areas Are Capped in 2026
In a notable shift from recent years, less than 5% of areas are expected to hit the 10% cap in FY 2026 — compared to 27% of areas that were capped in FY 2025. This means income limits in most markets are tracking closer to actual local conditions this year.
Some Areas Will See Decreases
Roughly 17% of areas are expected to see a decrease in income limits for FY 2026 — a higher share than in recent years (only 5% of areas decreased in FY 2025). For properties in those markets, this could affect tenant eligibility and maximum rents.
Strong Growth in Some Markets
On the other end of the spectrum, approximately 27% of areas will see income limit increases greater than 8%, reflecting continued income growth in higher-cost markets.
Which Programs Are Affected?
The FY 2026 income limits apply to the following federal programs (among others):
- Section 8 / Housing Choice Voucher (HCV)
- Public Housing
- Section 202 (Housing for the Elderly)
- Section 811 (Housing for Persons with Disabilities)
- HOME Investment Partnerships Program
- Low-Income Housing Tax Credit (LIHTC) / MTSP Limits
- Section 221(d)(3) BMIR, Section 235, and Section 236
- Emergency Solutions Grant (ESG) (30% limits effective June 1, 2026)
Note for LIHTC Developers and Owners: Projects financed with Section 42 Low-Income Housing Tax Credits or tax-exempt bonds should use the Multifamily Tax Subsidy Project (MTSP) Income Limits, available separately at huduser.gov/portal/datasets/mtsp.html.
Where to Find the Official Limits
All official FY 2026 income limit data — including area-specific query tools, PDF tables, and Excel downloads — is available directly from HUD:
huduser.gov/portal/datasets/il.html
You can search by state, metropolitan area, or county to find the exact limits applicable to your properties and programs.
Action Items for Compliance Teams
- Download the updated limits from HUD USER and update your internal eligibility tracking systems.
- Review tenant files — especially in areas where limits have decreased — to assess any impact on ongoing certifications.
- Update maximum rents for LIHTC and HOME properties as applicable, in coordination with your state housing finance agency.
- Train your leasing teams on the new thresholds before processing new applications.
- Watch for the 30% ESG limits, which will be separately effective June 1, 2026.
Bottom Line
The FY 2026 income limits bring moderate average growth of around 4%, a significantly lower share of capped areas compared to last year, and some noteworthy decreases in certain markets. With the delay now behind us, the clock is ticking — update your systems and get your teams aligned.
For questions about how these limits affect your specific programs or properties, reach out to your compliance advisor or state housing finance agency.
