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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.

HUD Programs

These new HUD Income Limits apply to all HUD-assisted housing programs. To access the new income limits, you can use the links below:

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.

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