Income Restricted Apartments: How to Find Them [2025]

Renters can find income-restricted housing by researching local U.S. Department of Housing and Urban Development (HUD) programs, learning about local guidelines, and contacting their local public housing authority.

As rent prices increase, the demand for affordable rental housing also rises, making income-restricted or income-based apartments increasingly difficult to find. If you’ve tried looking for low-income housing, you’ve likely found it to be a challenge.

In this article, we’ll explore income-restricted apartment options, including how to find them and who is eligible for them.

Guide to Income-Restricted Housing

What Are Income-Restricted Apartments?

Income-restricted apartments are developments reserved for low-income individuals or families, characterized by limitations on the maximum amount of income tenants can earn.

Income-restricted apartments are often privately owned, though they may receive state, local, or federal subsidies.

You will commonly find apartment communities that are fully designated as income-restricted apartments. In some cases, however, you will find communities with a blend of both market-rent and income-restricted apartments within them.

What’s the History Behind Income-Restricted Apartments?

The Great Depression sparked widespread financial unrest, accompanied by a significant housing crisis. The concern was so considerable that the federal government became heavily involved in providing affordable housing during the financial hardship.

The federal efforts would become known as the Housing and Urban Development (HUD) agency, which eventually developed into the U.S. Department of Agriculture’s Rural Development department.

In 1937, the Affordable Housing Act was passed, introducing several measures to facilitate the development of new and affordable rental housing, while also subsidizing the costs associated with operating income-restricted apartments.

What Is Section 8 Housing?

In the same year as the Affordable Housing Act, Section 8 housing was created under the Section 8 Housing Act of 1937. This section, still run by the federal government today, explicitly details the Housing Choice Voucher Program, which allows tenants to receive federal vouchers for housing in any development that participates in the program.

While Section 8 housing vouchers are still available, the Act has also evolved into Section 42 housing, which was a part of the Tax Reform Act of 1986. In this iteration, the IRS code provides incentives to investors building affordable housing in the form of tax credits.

Who’s Eligible for Income-Restricted Housing?

Typically, income-restricted apartments are reserved for families who fall within the “Very Low” income threshold, as determined by the HUD. Families within the “Extremely Low” income threshold will receive preference between the two.

The HUD calculates the median income levels for each metropolitan area within the U.S. annually. After that figure is determined, the HUD details the maximum incomes and establishes qualifying categories as either “Low,” “Very Low,” or “Extremely Low” in each metropolitan area.

Unsurprisingly, this calculation reveals that eligibility for income-restricted housing varies significantly across the country. Since median income levels are different from one city to the next, the requirements for income-restricted housing in those cities change with it.

Don’t be discouraged if your household is in the “Low” threshold, as there might be options available in your area. You can learn more about the median income levels and thresholds through the HUD Public Housing Agency (PHA) Contact Information website.

How Much Does Income-Restricted Housing Cost?

The average rent prices for income-restricted apartments vary drastically depending on location and unit size. There are different methods used to calculate the maximum rent caps as determined by local officials. If you’re looking to find out how much income-restricted housing will cost in your area, it is recommended that you contact your local housing authority. Contact your local public housing authority office.

How to Find Income-Restricted Housing

Below are the five basic steps to finding income-restricted housing.

1. Learn the Income Guidelines for Your Area

First, do your homework to find out more about the income-restricted housing eligibility requirements specific to your area. Visit the HUD website and review the “Individual Income Limits” to determine whether you qualify for assistance using their threshold. If eligible, you’ll fall into one of the three categories: Low, Very Low, or Extremely Low.

2. Contact Your Local Public Housing Authority

Once you have reviewed the guidelines and believe you qualify, you’ll want to contact your local public housing authority. Speaking with your PHA will help you determine approximate rent costs, apartment sizes, and see what’s currently available in your area.

3. Fill Out An Application

If you are looking for a government-owned apartment, you can apply directly through the PHA. For privately owned properties, you will be able to apply for an apartment directly to the landlord.

Remember, everyone who will be living in the apartment for which you are applying may need to pass a criminal background check during this process. Some offenses may disqualify you from income-restricted housing, although this varies by location. Private owners are known to have stricter standards than government-owned apartments.

4. Provide Your Documentation

During your application process, you’ll need to provide all of your required documentation, including verified income for everyone in the household. Any adult will need to include a government-issued ID, and you’ll have to submit birth certificates for any children.

Be truthful when providing your documentation. Don't hide any of your assets, for instance. Check out this video from Affordable Housing Waiting Room explaining how fraudulent claims in your application can cause you problems even years later:

5. Join the Waitlist

Unfortunately, the affordable housing market is often incredibly competitive. More than likely, you’ll need to be ready to sit on a waitlist. If you can be flexible with the size of your apartment, it might help you get into income-restricted housing sooner rather than later.

What’s the Difference Between Income-Restricted and Income-Based Housing?

Although the names are similar, income-restricted and income-based housing are two distinct concepts. While the government subsidizes the remainder of the market value of rent in both types of housing situations, the tenant’s portion is determined using different figures.

• Income-Restricted Housing: The rent prices for income-restricted apartments are determined by the median income for the local area. The rent price is then capped at a certain percentage of this figure. The percentage can vary by state and apartment size.
• Income-Based Housing: In income-based apartments, rent prices are based on the tenant's adjusted gross income. The rent is usually capped at 30% of this figure, regardless of the median income in the area.

Find Your Next Apartment

When you use Apartment List, you can take our quiz to help you get matched with a place in your location and price range. We feature a variety of listings, including income-restricted, senior housing, military-discounted housing, and more. Use our internal messaging system to contact the landlord for additional information about rental options and assistance.

FAQs about Income Restricted Apartments

What are the benefits of living in an income-restricted apartment?

The main benefit of income restricted housing is that it allows you to live comfortably within your means so that you can afford other expenses such as utilities and groceries. The peace of mind you experience from being able to afford your bills is priceless.

What are my rights as a tenant living in income-restricted housing?

Your tenants rights within income restricted housing are the same as they are in other rentals. These rights are largely determined by state and local ordinances, though there are some essential rights that are essentially universal: Your landlord is required to make major repairs in a timely manner.

Landlords cannot enter the premise without notice. Landlords must give a minimum amount of notice before eviction as stipulated by local law. You have a right to safe living conditions. You often have a right to quiet enjoyment of the property. Research your local laws to learn more about what your landlord is expected to do to care for the property.

How can I become ineligible for income-restricted housing?

Eligibility for income restricted housing is generally based on local regulations. However, a few common reasons why you might be removed from a housing voucher program include

• Failing to pay rent on time
• Failing to pay utilities
• Criminal activity
• Drug or alcohol abuse
• Missing recertification appointments or inspections
• Eviction
• Providing false information to the Housing Authority

What happens if my income goes up while living in an income-restricted apartment?

If your income increases above the threshold of eligibility while living in an income-restricted apartment, you will not be immediately evicted. Families are generally allowed to occupy their housing for a further six months after their income has been reassessed.

You will also be given a hearing, and the PHA will be required to provide you with 30 days' notice to vacate after the termination of your contract. If your income is reduced again during this time period, you can request a new hearing and assessment from your PHA.

How do income-restricted apartments verify income?

Income-restricted apartments typically verify income through income or tax-related documents. These documents may include tax returns, pay stubs, benefit statements, or bank statements.

Can students live in income-restricted apartments?

Many students do not qualify for income-restricted apartments, but those who are over 24, don’t have full-time student status, and are independent from their families may qualify for assistance.

Are there downsides to income-restricted apartments?

Yes, the main downsides are that most renters don’t have a choice in location, and some areas may have higher crime rates than desired.