July 6, 2020

Low Income Qualifications – How The US Government Determines if You Are Low Income

The Dept of Housing and Urban Development, HUD, has various classifications and criteria to determine the eligibility of a family or an individual for their subsidized housing schemes. There are set guidelines that are followed to decide whether the low income qualifications have been met. These guidelines vary depending upon the size of the household as well as the location of the property.

Low Income

As a general rule it is suggested that if the cost of housing, i. E. Utilizes and rental payments, total more than thirty per cent of an individual’s or family’s income it is termed as being not affordable, this information is set out by the Coalition on National Low Income Housing. Based on this calculation many of the country’s workers who are on minimum wage would fall under the category of being in unaffordable housing.

The HUD strives to ensure that those people who struggle to find the financial wherewithal to maintain their homes are provided an adequate level of assistance. There are today three primary classifications which have been set to determine eligibility for an HUD program for families who are in a financially difficult situation.

For example the Department suggests that a family which has a combined income of eighty per cent or less of an area’s median income should by law by given assistance. Those households with only thirty per cent of the median income for a region are thought of as being in an extremely precarious situation. There are other calculations which may also be used though this formula is the most common.

There are two main programs available to families that fit the criteria for assistance in terms of their income, these are referred to as Public Housing and Section 8 Housing. To qualify for public housing the family should not earn more than eighty per cent of the district’s median income whereas for a section 8 program the percentage would need to fall below fifty per cent. The subsidy provided under section 8 is in the form of a housing voucher.

As to be classified as officially a low income household the median level of income for that region is analyzed, the geographic location will have a bearing on whether assistance is provided by the Housing and Urban Development department. For example, in Boulder Colorado fifty per cent of the median income would be $44,000 whereas in the Denver metropolitan area the amount would be $37,000, as of today.

In certain areas of the country the figure is extremely low. This is highlighted by a location such as El Paso Texas where a family on $23,000 would be able to receive assistance using the fifty per cent calculation.

The actual income limits are set using American Community Survey data. It is important to note that the income limits used today in 2010 come from information gathered from 2005 to 2008. Because of this many experts suggest that a large number of families that have been adversely affected by the recession of 2008 and 2009 are not yet able to receive the assistance that they should be given.

Find more information,visit http://www2.ed.gov/about/offices/list/ope/trio/incomelevels.html

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