Quick Tips | HOME Income & Rent LimitsJul 19, 2023
Facts | The HOME Funds program has two federal income limits with corresponding rent limits to accommodate low and high HOME units. Low HOME units contain households that do not exceed 50% of area median income (AMI) and the households must pay no more than the low HOME rent. High HOME units contain households that do not exceed 80% AMI and are not charged any more than the high HOME rents.
Every HOME project with 5 or more units must have at least 20 percent of those units designated as low HOME, rounded up to the next whole unit number. This means that if a project has 5 HOME units, at least 1 must be low HOME. If there are 6 to 10 HOME units, then 2 must be low HOME, and a minimum of 3 if there are 11 to 15 HOME units, and so on.
Implication | HOME and other HUD CDP block grant programs are different than those for HUD multifamily programs (like Section 8) or the tax credit MTSP limits. and have their income limits published at a different time than the other AMI and MTSP limits? They are also published in two separate tables, one for income limits and one for rent limits.
Resource | The HOME income limits can be found HERE or by clicking the below image. Note that the section provides a link to the rent limits, as indicated in the picture. They are located HERE. From the rent limits page, as similar link leads to the income limits.
Bonus: Below is a link to a past Quick Tip blog post relating to an income calculator that can be used for HOME and other HUD CPD block grant programs. This calculator uses the correct limits once the calculator is updated each year.
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