AMI Income Limit Calculator
What Is Area Median Income (AMI)?
Area Median Income (AMI) is the middle income level for a specific area. It is calculated each year by the U.S. Department of Housing and Urban Development (HUD).
In simple terms:
- If you line up all households in an area by income
- The income in the middle is the median income
- That number becomes the AMI
Housing programs use AMI to decide who qualifies for affordable housing.
For official data, HUD publishes AMI figures each year through the U.S. Department of Housing and Urban Development on the HUD User website.
Why AMI Percentages Matter
Housing programs rarely use 100% of AMI. Instead, they use a percentage of AMI.
Common income limits include:
- 30% AMI – Extremely Low Income
- 50% AMI – Very Low Income
- 60% AMI – Low Income (common for tax credit housing)
- 80% AMI – Standard affordable housing limit
- 120% AMI – Moderate income programs
For example:
If the AMI in your area is $100,000:
- 80% AMI = $80,000
- 60% AMI = $60,000
- 50% AMI = $50,000
If your household income is below the required limit, you may qualify.
What Is an AMI Income Limit Calculator?
An AMI Income Limit Calculator is a tool that estimates:
- The Area Median Income for your location
- The income limit based on a selected AMI percentage
- Whether your income is below or above that limit
- Your likely eligibility status
It provides a fast estimate before you apply.
This is helpful because AMI varies by:
- State
- County or metro area
- Household size
How This AMI Calculator Works
The calculator you shared uses a simplified but structured method.
Here is how it works behind the scenes.
1. Base National AMI
It starts with a base national AMI estimate for a 4-person household:
$95,000
This is used as a general reference point.
2. State Multiplier
Each state has a multiplier that adjusts the base AMI.
For example:
- California multiplier: 1.40
- Mississippi multiplier: 0.75
- Texas multiplier: 0.88
- New York multiplier: 1.32
If the base AMI is $95,000:
California estimate:
95,000 × 1.40 = $133,000
Mississippi estimate:
95,000 × 0.75 = $71,250
This reflects cost-of-living differences across states.
3. Household Size Adjustment
AMI changes depending on how many people live in your household.
The calculator adjusts like this:
- 1 person: 70% of 4-person AMI
- 2 people: 80%
- 3 people: 90%
- 4 people: 100%
- More than 4: adds 8% per extra person
Example:
If estimated AMI for 4 people is $100,000:
- 1 person ≈ $70,000
- 2 people ≈ $80,000
- 3 people ≈ $90,000
- 5 people ≈ $108,000
This mirrors how HUD scales income limits.
4. Selected Income Percentage
The calculator then applies the chosen AMI percentage.
For example:
If AMI = $120,000
Selected percentage = 80%
120,000 × 0.80 = $96,000 income limit
That becomes your income cap.
5. Eligibility Comparison
Finally, the calculator compares:
Your Income vs. Income Limit
It returns one of three outcomes:
- Likely Eligible
- Income Slightly High
- Ineligible
It also shows the exact comparison in dollars.
How to Use the AMI Income Limit Calculator
Using the calculator is simple.
Step 1: Select Your State
Choose your state from the dropdown.
Step 2: Enter County or Metro Area
This is for reference. Official AMI is county-specific.
Step 3: Enter Household Size
Include everyone who lives in the household.
Step 4: Choose Income Limit Percentage
Select 30%, 50%, 60%, 80%, or 120%.
You can also enter a custom percentage like 0.75 for 75%.
Step 5: Enter Total Annual Household Income
Enter gross income before taxes for all household members.
Step 6: Click Calculate
You will see:
- Estimated Area Median Income
- Selected Income Limit
- Income comparison
- Eligibility status
- Reminder to confirm with official HUD data
Example Scenario
Let’s walk through a real example.
State: Texas
Household Size: 4
Selected Limit: 80%
Household Income: $70,000
If estimated AMI = $83,600 (example)
80% limit:
83,600 × 0.80 = $66,880
If your income is $70,000:
Result: ABOVE limit
Status: Ineligible
This helps you understand your position instantly.
Why This Tool Is Helpful
An AMI Income Limit Calculator helps you:
- Check affordable housing eligibility quickly
- Avoid applying for programs you do not qualify for
- Compare different AMI percentages
- Understand how household size affects limits
- Prepare before contacting a housing provider
It saves time and reduces confusion.
Important Limitations
This tool provides estimates only.
Key points:
- Real AMI is county-specific
- HUD updates AMI annually
- Some metro areas differ within the same state
- Housing providers use official HUD figures
Always confirm with:
- The property manager
- Local housing authority
- The official HUD income limit database
The calculator clearly states this in its disclaimer.
Who Should Use an AMI Income Limit Calculator?
This tool is useful for:
- Renters applying for affordable housing
- Families applying for income-based apartments
- People researching LIHTC properties
- Housing counselors
- Real estate professionals
It gives a fast income screening before formal application.
Frequently Asked Questions
What does 80% AMI mean?
It means your income must be at or below 80% of the Area Median Income for your area and household size.
Is AMI the same in every county?
No. AMI varies by county and metropolitan area.
Is this calculator official?
No. It is an estimate tool. Official limits are set by HUD.
Does household income include all income?
Yes. It includes gross income from all household members.