Frequently Asked Questions About 2024 Income Limits
Published by Thomas Stagg on Monday, January 22, 2024 - 5:57AM
When will the 2024 Income Limits be published:
The U.S. Department of Housing and Urban Development (HUD) has stated it plans to publish the limits on or around April 1 of each year.
What is the anticipated change in income limits for 2024?
Based on the Novogradac Rent and Income Limit Estimator, the average change is 6.7%. However, around 5% of areas will have a decrease or no change in their income limits.
What is the cap on income limit increases for 2024?
The cap on income limit increases is limited to the greater of two times the change in national median income or 5%, with a ceiling of 10%. The national median income changed by nearly 7.4%, which would result in a cap of nearly 14.8% before the application of the 10% ceiling. Therefore, the cap for 2024 will be 10%. The income limit for any area will not increase by more than 10%.
How many areas are estimated to be capped?
Novogradac estimates that around one-third of all areas will be capped.
Are Housing and Economic Recovery Act (HERA) Special limits subject to the cap?
HERA Special limits are not subject to the cap and may increase by greater than 10%.
What American Community Survey (ACS) data will be used for the 2024 income limits?
HUD has stated that it will use the 2022 ACS data. HUD began using the ACS data from two years prior for the 2023 income limits (2021 ACS). Previously, due to the timing of the release of the ACS data and HUD’s release schedule, HUD used ACS data that was from three years prior. For example, 2019 ACS data was used for the 2022 income limits.
Learn More About Income Limits with Novogradac
Novogradac has several resources for those looking to learn more about income limits.
For a discussion on how the cap has historically been calculated, how the notice clarifies the calculation of rent and income limits, and the possible effects of the decision as well as future dates to circle on the calendar, listen to the Jan. 16 episode of the Tax Credit Tuesday Podcast.
A better understanding of how income limits will change in future years can enable developers, investors and lenders to better underwrite low-income housing tax credit properties. Learn more with the Novogradac Rent and Income Limit Estimator ©.
Join the Income Limits Working Group to work with other industry stakeholders to suggest consensus solutions to technical issues involving HUD income limit policies.