To qualify for a LIHTC apartment in 2026, your household income generally has to fall at or below 60% of the area median income (AMI) where the property is located, and at some properties the ceiling is 50% of AMI instead. HUD published the 2026 income limits on May 1, 2026, and every tax credit property in the country had to be using them by June 15, 2026. The exact dollar figure depends entirely on your county or metro area and your household size, because AMI is a local number, not a national one.
The Low-Income Housing Tax Credit is the largest affordable housing program in the United States. It is often called Section 42 housing, after the section of the Internal Revenue Code that created it. Unlike a Section 8 voucher, which follows a person, LIHTC subsidizes the building. The developer gets tax credits, and in exchange the rents and the tenant incomes in a set share of the units stay capped for at least 30 years. If you want the full side-by-side, see our Section 8 vouchers vs LIHTC apartments comparison. This page covers the income thresholds themselves.
How LIHTC Income Limits Are Actually Built
HUD publishes a separate set of numbers for tax credit properties called the Multifamily Tax Subsidy Project (MTSP) income limits. These are the only limits that apply to LIHTC and to tax-exempt bond properties under Section 142. They are not the same as the Section 8 income limits, even though they come out on the same day and are built from the same median family income estimates.
The chain of calculation runs like this:
- HUD estimates the median family income for each metro area and each non-metro county, using American Community Survey data. For 2026 the source year is the 2024 ACS, inflated forward using projected national per capita wage growth of roughly 5.5%.
- HUD sets the very low-income limit at 50% of that area median, calculated for a four-person household, then rounds.
- Every other tier is a straight multiple of that 50% limit. The 60% limit is 1.2 times it. The 30% limit is 0.6 times it. The 80% limit is 1.6 times it.
- Household sizes other than four are adjusted from the four-person figure: 70% of it for one person, 80% for two, 90% for three, 108% for five, 116% for six, 124% for seven, and 132% for eight. Above eight people, add 8% of the four-person limit per additional person.
That last step is why a single person and a family of four in the same building face very different numbers even though both are called "60% AMI."
The 2026 cap
HUD limits how much any area's income limits can rise in one year. The 2026 cap is the greater of 5% or twice the change in national median family income, with a ceiling of 10%. The ACS national median moved 5.046%, so the 2026 cap landed at the full 10%. About 221 areas hit that cap. Across all HUD areas, the average increase for 2026 was 3.4%.
The national median family income HUD used for fiscal year 2026 is $107,900.
2026 LIHTC Income Limits: A National Example
The table below applies HUD's actual methodology to the national median family income of $107,900. It is an illustration of the structure, not a limit that applies anywhere in particular. Your local numbers will be higher in expensive metros and lower in rural counties, sometimes by a wide margin.
| Household size | 30% AMI | 40% AMI | 50% AMI | 60% AMI | 70% AMI | 80% AMI |
|---|
| 1 person | $22,650 | $30,200 | $37,750 | $45,300 | $52,850 | $60,400 |
| 2 people | $25,900 | $34,500 | $43,150 | $51,780 | $60,410 | $69,040 |
| 3 people | $29,150 | $38,850 | $48,550 | $58,260 | $67,970 | $77,680 |
| 4 people | $32,350 | $43,150 | $53,950 | $64,740 | $75,530 | $86,320 |
| 5 people | $34,950 | $46,600 | $58,250 | $69,900 | $81,550 | $93,200 |
| 6 people | $37,550 | $50,100 | $62,600 | $75,120 | $87,640 | $100,160 |
| 7 people | $40,150 | $53,500 | $66,900 | $80,280 | $93,660 | $107,040 |
| 8 people | $42,700 | $56,950 | $71,200 | $85,440 | $99,680 | $113,920 |
Two things worth flagging about that table. First, the LIHTC 30% limit is not the same as HUD's "extremely low income" limit used for public housing and vouchers, which has a poverty-guideline floor built into it. For tax credit purposes, 30% is simply 0.6 times the 50% limit. Second, the 20% through 80% tiers only matter if the property elected the average income test. At a conventional property, only 50% or 60% is in play.
The Three Minimum Set-Aside Tests
Every LIHTC property elects one of three tests when it is placed in service. The election determines which income ceiling you face as an applicant.
| Set-aside test | What the owner promised | Income ceiling for restricted units |
|---|
| 20/50 | At least 20% of units rented to households at or below 50% AMI | 50% of AMI |
| 40/60 | At least 40% of units rented to households at or below 60% AMI | 60% of AMI |
| Average income | At least 40% of units rented to households at designated tiers from 20% to 80% AMI, averaging no more than 60% | Varies by unit, 20% to 80% |
The 40/60 election is the most common by a wide margin, which is why 60% AMI is the number most people encounter. The average income test was added by the Consolidated Appropriations Act of 2018 and got final Treasury regulations in 2022. At an average income property, one apartment might be restricted to a household under 30% AMI while the unit next door is open to a household at 80% AMI, as long as the designated tiers across the qualifying units average 60% or less.
Ask the leasing office directly which tier a specific unit carries. Two identical floor plans in the same building can have different income ceilings and different rents.
Rent Limits Are Tied to the Same Numbers
LIHTC rent is a formula, not a market price. The maximum gross rent for a unit is 30% of the applicable income limit at an imputed household size, divided by 12. Then the utility allowance is subtracted to get the maximum net rent the owner can charge you.
Imputed household size is based on bedroom count, not on who actually moves in. A studio uses one person. Each bedroom adds 1.5 people, so a one-bedroom uses 1.5, a two-bedroom uses 3, and a three-bedroom uses 4.5. Because HUD does not publish limits for half a person, the property interpolates between the two nearest whole household sizes.
Using the same national illustration at the 60% tier:
| Unit size | Imputed household | 60% income limit | Max gross rent per month |
|---|
| Studio | 1 person | $45,300 | $1,132 |
| 1 bedroom | 1.5 people | $48,540 | $1,214 |
| 2 bedroom | 3 people | $58,260 | $1,456 |
| 3 bedroom | 4.5 people | $67,320 | $1,683 |
Those gross rents include utilities. If you pay your own electric and gas, the property subtracts a published utility allowance and the rent on your lease is lower.
What Counts as Income
LIHTC uses HUD's definition of annual income, which is broader than taxable income. Property managers project forward for the next 12 months rather than looking only at last year's tax return.
Counted: wages and salary before deductions, overtime, tips, commissions, bonuses, self-employment net income, Social Security and SSI, SSDI, pensions and annuities, unemployment, alimony, regular contributions from people outside the household, net rental income, and imputed income from assets above a threshold.
Not counted: food assistance (SNAP), most foster care payments, lump-sum inheritances and insurance settlements, income from employment of children under 18, most student financial aid used for tuition, and reimbursements for medical expenses.
There is no asset limit for LIHTC eligibility. HOTMA introduced a $100,000 net asset cap for HUD-assisted programs, but that cap does not apply to LIHTC-only households. What LIHTC properties do have to do is use HUD's published HOTMA values when they calculate income and net family assets. For 2026, households can self-certify assets below approximately $52,800 without third-party verification. Full HOTMA implementation is required by January 1, 2027.
The Student Rule
A unit occupied entirely by full-time students generally cannot count as a low-income unit, which means the property cannot rent to that household. The IRS treats someone as a full-time student if they were enrolled full time for any part of five months in the calendar year, and the months do not have to be consecutive.
Five exceptions in Section 42 let an all-student household qualify anyway:
- At least one member is enrolled in a federal, state, or local job training program.
- At least one member receives assistance under Title IV of the Social Security Act, which covers TANF.
- The household is a single parent and their children, and none of them are claimed as a dependent by a third party.
- The household is married adults who are eligible to file a joint return.
- At least one member was previously in foster care.
If even one adult in the household is not a full-time student, the rule does not apply at all.
How to Find the Limits for Your Own Area
- Go to the HUD MTSP dataset. The official source is huduser.gov/portal/datasets/mtsp.html. Select your state, then your metro area or county. Make sure you are on the MTSP page and not the general Section 8 income limits page.
- Check for HERA special limits. Some areas that were "held harmless" back in 2008 have a second, higher set of limits that only apply to buildings placed in service before 2009. The HUD page shows them separately if your area has them.
- Confirm with the state housing finance agency. Most state HFAs publish a clean PDF of combined income and rent limits each May. Search for your state's name plus "housing finance agency LIHTC income and rent limits 2026."
- Ask the property. Two buildings in the same county can use different limits if one was placed in service before 2009, or if one elected average income and the other did not.
How to Apply for a LIHTC Apartment
There is no central application. LIHTC properties are privately owned and each one runs its own waiting list.
- Find properties. Your state housing finance agency publishes a list of tax credit properties. The National Housing Preservation Database and HUD's resource locator also map them.
- Call and ask two questions. Is the waiting list open, and what is the income ceiling for the unit size you need? Waiting lists at desirable properties can be closed for a year or more.
- Gather documents. Expect to provide photo ID and Social Security cards for all household members, the last four to six weeks of pay stubs, award letters for any Social Security or pension income, two months of bank statements, and last year's tax return.
- Complete the application and the certification. You will fill out a Tenant Income Certification and a Student Status Questionnaire. Everything you report gets verified with third parties, usually directly with your employer.
- Pass screening. Income eligibility is not the same as approval. Owners still run credit and criminal background checks and check landlord references, subject to fair housing law and any state rules.
- Recertify. Most properties recertify income annually. Buildings that are 100% low-income units can be exempt from full annual recertification after the first year, but they still confirm student status.
What Happens If Your Income Goes Up
You do not get evicted for earning more. This is one of the most misunderstood parts of the program.
Once you qualify at move-in, you stay qualified. If your income later rises above 140% of the applicable limit, your unit is treated as over-income and the "available unit rule" kicks in: the owner has to rent the next comparable vacant unit in the building to a qualifying low-income household in order to keep the credits intact. You can stay. Your rent stays capped at the LIHTC maximum for your unit.
At a 60% AMI property, that 140% threshold means a four-person household in the national illustration above could go from $64,740 at move-in to more than $90,600 before the unit is even flagged.
Frequently Asked Questions
What is the 60% AMI income limit for LIHTC in 2026?
It depends on your county or metro area. The 60% limit is calculated as 1.2 times HUD's very low-income limit for your area, adjusted for household size. Using the national median family income of $107,900 as an illustration, a four-person 60% limit works out to about $64,740, but real metro figures range widely above and below that. Look up your area in HUD's MTSP dataset for the actual number.
When did the 2026 LIHTC income limits take effect?
HUD released them May 1, 2026. Tax credit and tax-exempt bond properties had 45 days to implement, so the 2026 limits were required at all LIHTC properties on or before June 15, 2026.
Is LIHTC the same as Section 8?
No. LIHTC subsidizes the building, so the rent is capped for everyone in a restricted unit regardless of what that individual household earns. Section 8 subsidizes the household, so the tenant pays roughly 30% of their own income and the voucher covers the rest. You can hold a Section 8 voucher and use it at a LIHTC property.
Is there an asset limit for LIHTC?
No. LIHTC has no asset test. Income generated by assets does count toward annual income, and HOTMA rules govern how properties calculate that, but there is no cap on what you can own. The $100,000 net asset cap under HOTMA applies to HUD-assisted programs, not to LIHTC-only households.
Can full-time students live in tax credit housing?
Only if the household meets one of the five Section 42 exceptions, or if at least one adult in the household is not a full-time student. Single-parent students, married students filing jointly, students in job training programs, students receiving TANF, and former foster youth can all qualify.
Do I have to be a US citizen to rent a LIHTC apartment?
Section 42 itself has no citizenship or immigration status requirement, unlike HUD-assisted programs. Individual owners set their own screening policies within fair housing law, and any unit that also carries a HUD subsidy will apply that program's rules.
How is LIHTC rent calculated?
Maximum gross rent is 30% of the income limit at the unit's imputed household size, divided by 12, minus a utility allowance. Imputed household size is 1.5 people per bedroom, with a studio counted as one person. Your actual household size does not change the rent.
What is the average income test?
A third minimum set-aside option added in 2018. Instead of restricting all qualifying units to 50% or 60% AMI, the owner designates individual units at tiers from 20% to 80% AMI, and the designations across those units have to average 60% or less. It lets a single property serve both deeper-need and moderate-income households.
