News | HUD updates 2026 LIHTC AIT limits...take an important action step!
Jun 02, 2026
A lot of compliance professionals and software vendors have noticed something was wrong with this year's Average Income Test
(AIT) limits on the HUD MTSP income limit website. Inappropriate rounding was being used. Only 50% limits should be used, and other designations calculated from there. According to Rev. Rul. 2020-4, "for purposes of Section 8, HUD makes numerous, additional adjustments to arrive at the low-income (80 percent) and extremely low-income (30 percent) determinations." The Ruling indicates these, and other similar adjustments, should not be employed. The 20-40% and 60%-80% limits result from direct calculations based on the 50% limits without other rounding. HUD has quietly announced an adjustment on the "data" section of their MTSP income limit page. See the image below from the site, with a call-out for the notice of change.
Action step | If you or your software uses HUD data to populate your AIT income limits rather than directly calculating the non-50% designations, ensure that the new correct limits are used.
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