HUD Releases 2023 Income Limits


Posted On: May 16, 2023

The Department of Housing and Urban Development (HUD) recently announced the release of the 2023 income limits, effective May 15, 2023. This announcement is an important milestone for numerous assisted housing programs, including Public Housing, Section 8 project-based, Section 8 Housing Choice Voucher, Section 202 housing for the elderly, and Section 811 housing for persons with disabilities.

HUD’s process for determining these limits is quite complex, involving calculating the median family income for every region in the United States. Using Median Family Income estimates and Fair Market Rent area definitions, HUD sets income limits that reflect each metropolitan area, parts of some metropolitan areas, and each non-metropolitan county.

The resulting income thresholds are defined as percentages of the median family income, with adjustments made based on the number of family members in a household. This intricate system helps HUD identify low-income status and determine eligibility for many of its housing assistance programs.

To delve deeper into this process, the methodology documents on Median Family Income and 2023 Income Limits can be accessed on the HUD website here.

Corporate Trainer, Vickie Bell, discusses the 2023 Income Limits in a #TuesdayTip

Since fiscal year 2011, HUD has been using data from the Census Bureau’s American Community Survey (ACS) to drive these estimates. There’s typically a 3-year delay between the ACS estimates and the fiscal year they apply to. For instance, the median family incomes and income limits for FY 2022 were based on ACS 2019 data.

However, the COVID-19 pandemic has led to significant adjustments. Disruptions in data collection resulted in the Census Bureau’s decision not to publish the standard 1-year estimates from the 2020 ACS, as they did not meet the Bureau’s Data Quality Standards. This has affected HUD’s FY 2023 calculations, which would usually be informed by 2020 ACS estimates. Instead, HUD has resorted to using ACS data from 2021 to establish the FY 2023 median family incomes and income limits.

While HUD has been releasing these figures annually in March or April since 2014, the delayed availability of the special tabulations of ACS 2021 data required for median family income calculations has led to a shift in this year’s timeline. Hence, the FY 2023 figures are set to be released on or around May 15, 2023.

Given the uncertainties of these times, this date may be subject to further changes. Any updates will be promptly posted by HUD on their dedicated webpage, which can be found here.

Despite the immense challenges the global pandemic has posed, HUD’s adaptability and dedication shine through. The mission to provide housing assistance to those who need it most continues, driven by a steadfast commitment in the face of adversity.



YOU MIGHT ALSO LIKE

Rent Burden Rises

Rent Burden Rises as Millions Struggle to Pay

The rent burden rises across America. Millions are spending more on rent than ever before according to a new report […]

Read More
HUD credit screening guidance

Understanding HUD Guidance on Credit and Fair Housing Implications: Ensuring Equity in Rental Housing

Regarding tenant screening, housing providers have long used credit reports as an indicator of an applicant’s financial reliability. However, the […]

Read More
HUD tenant screening guidance

Understanding HUD's Guidance on Screening Applicants for Rental Housing: A Fair Housing Perspective

The U.S. Department of Housing and Urban Development’s (HUD) guidance promotes fair practices in the tenant screening process for rental […]

Read More