HUD Publishes 2021 Income Limits
On April 1, 2021, HUD published the income limits for HUD programs and the MTSP limits for the Low-income Housing Tax Credit and Tax-Exempt programs. These new income limits are effective as of April 1, 2021.
These new HUD Income Limits apply to all HUD-assisted housing programs. To access the new income limits, you can use the links below:
- Section 8 – Income Limits can be accessed by clicking here
- Section 221(d)(3) BMIR, Section 235, and Section 236 – Income Limit can be accessed by clicking here
New MTSP Income Limits
- Low-Income Housing Tax Credit & Tax-Exempt Bonds – Income Limits can be accessed by clicking here.
Note: HUD has not yet published the Income or Rent limits for the HOME Investment Partnership Program.
What you need to know when selecting your income limit
For Section 8 Properties:
The income limit category to be used for Project-Based Section 8 assisted properties depends on the date that the HAP agreement was executed.
- For projects with a HAP contract effective before October 1, 1981, the highest income limit applicable to the project is the Low (80%) Income Limit.
- For projects with a HAP contract effective after October 1, 1981, the highest income limit applicable to the project is the Very-Low (50%) Income Limit.
- For Income Limit information for other HUD MFH Programs, refer to HUD 4350.3 Figures 3-2 and 3-3.
For LIHTC Properties:
Several income limit rules apply to the LIHTC Program. Before selecting the income limits and rent limits for a LIHTC project, the following data is needed.
- Minimum Set-Aside Election (20/50, 40/60, AI)
- Project County
- The Placed-In-Service Date
- The owner’s election to item 8(b) on the IRS form 8609 (multiple building election)
- Rural Designation of Project
- Other Project Financing
HERA Special Limits
To use the HERA Special Limits, the project would need to have been placed in service before 01/01/2009, and the project is located in a county that HUD states the HERA special limits apply to.
Limits Held Harmless
In some counties, the income limits may decrease from year to year. A LIHTC project may use the prior year’s higher limit if the project is placed in service before the publication of the new lower limits.
National Non-Metro ( Rural) Income Limits
A project may use the National Non-Metro Income limits if the project is defined as being in a rural area by USDA, and the project is NOT financed with tax-exempt bonds.
Projects with Multiple Buildings
The placed-in-service date is a key date when selecting income limits, especially as it relates to income limits being held harmless. As each building (BIN) in a project has its own placed-in-service date, the owner’s election of whether buildings will or will not be treated as part of a multiple-building project can affect the application of income limits at the project.
If the owner elected to treat the building as part of a multiple-building-project, by checking yes to item 8(b) on the IRS Form 8609. Then, the project’s placed-in-service date is the date the first building in the project is placed in service.
If the owner elected to NOT treat the building as part of a multiple-building-project, by checking no to item 8(b) on the IRS Form 8609. Then, each building (BIN) where this election is made is considered a separate project, and the income limit applicable is based on the building’s placed-in-service date.