Regulations last checked for updates: May 11, 2024

Title 24 - Housing and Urban Development last revised: May 07, 2024
§ 81.18 - Affordability—Income level definitions—family size not known (actual or prospective tenants).

In determining whether a rental unit is affordable to very-low, low-, or moderate-income families where family size is not known to the GSE, income will be adjusted using unit size, and affordability determined as follows:

(a) For moderate-income, the income of prospective tenants shall not exceed the following percentages of area median income with adjustments, depending on unit size:

Unit size Percentage of area median income
Efficiency70
1 bedroom75
2 bedrooms90
3 bedrooms or more(*)

*104% plus (12% multiplied by the number of bedrooms in excess of 3).

(b) For low-income, income of prospective tenants shall not exceed the following percentages of area median income with adjustments, depending on unit size:

Unit size Percentage of area median income
Efficiency56
1 bedroom60
2 bedrooms72
3 bedrooms or more(*)

*83.2% plus (9.6% multiplied by the number of bedrooms in excess of 3).

(c) For very-low-income, income of prospective tenants shall not exceed the following percentages of area median income with adjustments, depending on unit size:

Unit size Percentage of area median income
Efficiency42
1 bedroom45
2 bedrooms54
3 bedrooms or more(*)

*62.4% plus (7.2% multiplied by the number of bedrooms in excess of 3).

(d) For especially-low-income, income of prospective tenants shall not exceed the following percentages of area median income with adjustments, depending on unit size:

Unit size Percentage of area median income
Efficiency35
1 bedroom37.5
2 bedrooms45
3 bedrooms or more(*)

* 52% plus (6.0% multiplied by the number of bedrooms in excess of 3).

[60 FR 61888, Dec. 1, 1995, as amended at 65 FR 65089, Oct. 31, 2000]
authority: 12 U.S.C. 1451
source: 60 FR 61888, Dec. 1, 1995, unless otherwise noted.
cite as: 24 CFR 81.18