The U.S. Department of Housing and Urban Development (HUD) has released the income limits for 2025, which are used to determine eligibility for HUD-assisted programs and low-income housing tax credit (LIHTC) properties.
The average annual increase in HUD’s Very Low-Income (VLI) limits across various HUD areas is 4.6%. The maximum permissible increase for the fiscal year 2025 is capped at 9.2%. This cap is determined by taking the greater of 5% or twice the change in the national median family income, with a maximum limit of 10%, unless a LIHTC development qualifies for special income limits under the Housing and Economic Recovery Act (HERA).
HUD publishes these income limits for several programs, including public housing, Section 8, Section 202, Section 811, Section 221(d)(3), and Section 236 properties. Additionally, it provides Multifamily Tax Subsidy Project (MTSP) income limits that determine eligibility for LIHTC and tax-exempt private activity bond (PAB)-financed properties. The new income limits are effective immediately, and any decreases in limits must be implemented by May 16.
For more information, visit https://www.huduser.gov/portal/datasets/mtsp.html or click here.
