HUD Publishes 2026 Income Limits

The Department of Housing and Urban Development (HUD) calculates and publishes the income limits, also referred to as the Annual Median Gross Income (AMGI), each year. The Income Limits for 2026 have been released by HUD with an effective date of May 1, 2026.

The Housing and Economic Recovery Act (HERA) of 2008 (HR 3221), modified HUD’s income limit methodology for calendar years after 2008. As a result, effective with the issuance of the 2009 limits, HUD began issuing a separate income limit chart, the Multi-family Tax Subsidy Project (MTSP) chart for Tax Credit and Tax-Exempt Bond properties.

Tax credit regulations require owners of Low-Income Housing Tax Credit (LIHTC) properties to implement new income limits based on the MTSP chart within 45 days of the release, meaning for this year all LIHTC properties must be using the new 2026 income and rent limits on or before June 15, 2026.

The MTSP income limit chart includes the HERA Special Limits which are to be used in specific counties for properties placed in service prior to January 1, 2009. Properties placed in service after December 31, 2008, must use the regular limits.

The Pennsylvania Housing Finance Agency (PHFA) will publish the 2026 Income and Rent Limits in their Web Entry System for each property using the required income and rent limits specific to the property based on their Indenture of Restrictive Covenants and Regulatory Agreements. PHFA requires that these charts be used; however, owners and managers are encouraged to check these numbers for accuracy. Please check the PHFA Web Entry System for these site-specific limits (PHFA will send out an email when their system has been updated). The IRS has taken the position that the owner is responsible for using the correct income limit number.

If a development has not yet received its 8609, the property will not be in the PHFA Web Entry System and, therefore, will not have a site-specific income and rent limit chart prepared by PHFA until the 8609 is issued. Developments not in the Web Entry System will be responsible for ensuring they are using the correct income and rent limits for their property based on the MTSP Income and Rent limits.

Newly published limits do not always mean an increase has occurred. In some cases, limits may decrease. LIHTC properties are held harmless from income limit (and therefore rent) reductions. LIHTC properties may use the highest income limits used for resident qualification and rent calculation purposes since the development has been in service. HOME & HUD program income limits are not held harmless. HOME limits are usually not published until around June 1 (expect a delay in this release for 2026 due to the delay in HUD’s release of the 2026 limits).

Creating and maintaining affordable housing communities is a complex task. Numerous state and federal requirements must be followed – both during development and for years thereafter. MLCM clarifies LIHTC, Federal HOME, HUD, and certification requirements you must follow to remain compliant. For more information on these services, don’t hesitate to contact us.

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