HUD Releases 2014 Income Limits

HUD released the FY14 income limits and median family income (MFI) estimates on December 18. For FY14, the estimated MFI for the United States is $63,900.

These data are used to determine eligibility for households applying for federally assisted housing programs.

The FY14 MFIs are calculated using the 2007-2011 five-year American Community Survey (ACS) data, but in areas with a valid 2011 one-year ACS survey median family income, HUD incorporated the more recent data.

The data were updated from 2011 to the end of 2012 with Consumer Price Index (CPI) data. HUD used a factor of 0.98% to trend the 2012 estimates to the midpoint of 2014. The trend factor reflects the annualized change in the national median family income by comparing the 2006 one-year ACS and the 2011 one-year ACS.

HUD income limits are based on the MFIs and are adjusted for family size. Very low income limits for four-person families are used to form the basis of income limits for households of other sizes. Income limits are also adjusted for areas with unusually high or low housing costs. Annual changes are capped at 5% in either direction, or limited to at most twice the national change.

The FY14 Income Limits documentation can be accessed at: http://bit.ly/1cRHmRB