Low-income housing is rental housing reserved for households whose income is under limits set by the U.S. Department of Housing and Urban Development (HUD). HUD bases the limits on the typical income in your metro area or county and adjusts them for household size. The number that applies to you depends on where you live, how many people live with you, and which program you apply to. HUD's 2026 limits took effect May 1, 2026.
Meeting the income limit satisfies one requirement. Each program has others, and most have more applicants than openings, so qualifying does not guarantee a home or a voucher.
Affordable housing is the broader term. HUD calls housing affordable when it costs no more than 30% of a household's income before taxes, including utilities. The same words also describe programs that cap rents for income-qualified renters.
"Affordable" describes a cost: housing that takes 30% or less of your income. A market-rate apartment can be affordable for one household and out of reach for the next. "Affordable housing" also names programs and buildings where rents are capped for people under an income limit.
"Low-income housing" describes who the housing is for: households with limited incomes, measured against HUD's local limits. Most of it comes through three federal programs: public housing, Housing Choice Vouchers (Section 8), and Low-Income Housing Tax Credit (LIHTC, or Section 42) apartments. Their rules differ more than the labels do. Public housing and vouchers set your rent from your income; tax-credit apartments cap rent at a level tied to the apartment's income tier.
HUD sorts households into three tiers that fit inside one another: every "very low" household is also "low," and every "extremely low" household is both. Income is one requirement among several, and the others vary by program. A household under the extremely low-income limit meets the income test for all three programs.
| HUD income tier | Benchmark | What it generally means for you |
|---|---|---|
| Low income | Up to 80% of area median income (AMI) | Ceiling for public housing and for some tax-credit apartments |
| Very low income | Up to 50% of AMI | Ceiling for most Housing Choice Vouchers |
| Extremely low income | Up to 30% of AMI, or the federal poverty line if that is higher, but never more than the very low-income limit | Priority group: at least 75% of new vouchers and 40% of new public housing admissions each year |
HUD income tiers for 2026, effective May 1, 2026. Sources: HUD FY2026 Income Limits methodology, HCV Guidebook: Eligibility, Public Housing Occupancy Guidebook: Waiting List.
AMI is the midpoint of family incomes in your area, as HUD estimates it each year. The published limits are not always a clean 80%, 50%, or 30% of it, because HUD adjusts for unusual housing costs and sets a separate figure for each household size. Look up the published number instead of doing the math yourself: open the HUD Income Limits lookup, choose your area, and read the row for your household size. Tax-credit apartments use a separate HUD table, the MTSP limits, where 60% of AMI is the most common tier.
| Program | Who is generally eligible | How your rent is set | Where to apply |
|---|---|---|---|
| Public housing | Income at or below 80% of AMI; at least 40% of new admissions go to households at or below 30% | About 30% of your income after HUD's deductions, or a flat rent you can choose instead | Your local public housing agency (PHA) |
| Housing Choice Voucher (tenant-based Section 8) | Generally at or below 50% of AMI; at least 75% of new vouchers go to households at or below 30% | About 30% of your income after HUD's deductions toward rent and utilities, more if the rent is above the PHA's payment standard | Your PHA, then any landlord who accepts the voucher |
| Project-based Section 8 (help attached to a specific building) | Low or very low income, set per building | About 30% of your income after HUD's deductions; the help stays with the apartment | The building (or the PHA, for project-based vouchers) |
| Tax-credit (LIHTC / Section 42) apartments | Income at or below the apartment's tier, usually 50% or 60% of AMI, up to 80% in some buildings | Rent capped by the apartment's income tier and size, whatever your income | The building's leasing office |
Federal rental programs compared. Sources: 24 CFR 982.1, HUD HCV Guidebook: Eligibility, HUD fact sheet on project-based Section 8, 26 U.S.C. 42.
An income-restricted apartment is not automatically affordable for everyone who qualifies. A 60%-of-AMI apartment charges the same capped rent to a household at 58% of AMI and one at 35%. A household with very low income may pay less in public housing or with a voucher, where rent follows income. You can also combine programs. A Housing Choice Voucher works in a tax-credit building, and federal law bars tax-credit owners from turning you away just because you have one.
With public housing and vouchers, your rent moves with your income, and you report your income again (recertify) at least once a year. HUD rules for both programs require citizenship or eligible immigration status for the household members who receive the help. Waitlists can be long, and a PHA may stop taking applications when its list is long enough. Voucher holders also need a landlord who will take the voucher. Some states and cities require landlords to consider vouchers under source-of-income laws, and others do not. With tax-credit apartments you deal directly with the building and the rent is predictable, but it does not fall if your income drops.
Public housing and vouchers. HUD's formula sets your share at 30% of your monthly income after deductions for dependents, childcare, and some medical or disability costs. If 10% of your total income is higher, you pay that instead. Your PHA may also charge a minimum rent of up to $50, with a hardship exemption. Both programs count rent plus a utility allowance, so if you pay utilities yourself, you pay the landlord less. Public housing residents get one chance a year to choose a flat rent instead. With a voucher, the PHA pays the gap between your share and its payment standard, the most it will pay toward rent in your area. If the apartment rents for more than that, you pay the extra, capped at 40% of your income after deductions when you move in. HUD's rent calculation chapter has the full rules.
Tax-credit apartments. The cap depends on the apartment's income tier (for example, 50% or 60% of AMI) and bedroom count. It includes a utility allowance, so if you pay utilities yourself, the rent due to the building is lower. The cap is a maximum: your actual rent is what the lease says, and HUD notes that owners are not required to raise rents when the limits rise. Your own income does not change it.
The 30% benchmark outside of programs. The same 30% figure is HUD's benchmark for any rental, including market-rate apartments. According to the Apartment List October 2026 Rent Index, the national median rent was $1,388 in September 2026 (download the data). Keeping that rent at 30% of income before taxes takes about $55,500 a year, before utilities. That is a budgeting guide for a market-rate apartment. Program eligibility is separate and depends on each program's own limits and requirements.
Waitlists are a long-term plan. If you are facing eviction or homelessness now, use the resources built for that:
Check your local limits, work out which programs you may qualify for, and apply to every open list and building that fits. Public housing and vouchers go through your PHA; tax-credit and other income-restricted apartments go through the building. Keep your applications and contact details current while you wait. You still need a place to live in the meantime, so compare apartments by budget and location on Apartment List.
No. Section 8 is one part of low-income housing. It covers Housing Choice Vouchers, which you take to a private landlord, and project-based Section 8, where the help is attached to a specific building. Public housing and tax-credit apartments are separate programs with their own rules.
Affordable housing describes cost: housing that takes no more than 30% of a household's income, and the programs that cap rents toward that standard. Low-income housing describes who qualifies: households under HUD's income limits, usually 80% of area median income or less. The two labels can apply to the same building.
Yes. HUD publishes limits for households of one to eight people, and a larger household has a higher dollar limit in the same area. Compare your income to the row for your household size; the four-person figure is only HUD's reference point.
A raise changes what you pay and, over time, can affect whether you still qualify. It does not by itself end your lease. In public housing, your rent rises with your income. If it stays above HUD's over-income line (2.4 times the very low-income limit) for two years in a row, the PHA must charge a higher rent or end your lease. With a voucher, your share rises until it covers the full rent, and the voucher ends once the PHA has made no payment for six months. In a tax-credit apartment, the building checks your income at move-in, and a later raise generally does not end your lease. Report income changes when your program requires it.
It depends on the PHA or building. PHAs can stop taking applications when a list is long enough, so ask each one which lists are open, how long its current wait is, and whether project-based or income-restricted options have shorter waits.
Public housing and vouchers are funded by HUD and run by local PHAs. Tax-credit apartments are built by private developers and investors who receive federal tax credits allocated by state housing finance agencies, often combined with state and local money.
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