The HUD Definition of Low Income

Low income is different for every county in the U.S.

The U.S. Department of Housing and Urban Development's (HUD) mission is to provide Americans with safe, sustainable communities with affordability as a main priority. HUD assists in all areas of real estate including avoiding foreclosure, buying a home, grants, home improvements and environment. Many of HUD's programs focus on assisting low-income individuals. It's important to understand the different levels of low income and how to determine a particular county.

Determining Low Income

Low income is determined using a series of statistics. According to HUD, there are three levels of low income: low, very low and extremely low. These statistics are arrived at using median income and the Fair Market Rent Document, which averages rental prices in each specific county.

Classification for "Low"

In order to be classified as low income, the household must earn 80 percent or lower than the median income of the county where you live. There are average amounts for 1-to-8-person households.

Classification for "Very Low"

In order to classify as having very low income, the household must earn 50 percent or less of the median income for the number of people per household in your county.

Classification for "Extremely Low"

For a household to qualify as extremely low income, the household must earn 30 percent or less of the median income for the county.

County Income Levels

In order to gain the exact numbers for a particular county, visit the HUD Income Limits Documentation System, click button at bottom of page and enter the state and county (link in Resources).

References

• HUD: 2010 Low Income Documentation System
• HUD: Fair Market Rent Document
• HUD: Department Areas

Resources

• HUD: 2010 Low Income Documentation System