USDA Income Limit Calculator

What Is a USDA Home Loan?

A USDA loan is a government-backed mortgage program offered through the
United States Department of Agriculture.

It is designed to help low- to moderate-income households buy homes in eligible rural and suburban areas.

Key benefits:

• No down payment required
• Competitive interest rates
• Reduced mortgage insurance costs
• Flexible credit guidelines

But there is one important rule.

You must meet USDA income limits.

What Is the USDA Income Limit?

The USDA sets a maximum household income based on:

• Your county
• Your household size
• Local median income

In many standard areas, the base limit for 1–4 people is around:

$110,650 per year

For households with 5–8 people, the limit is often around:

$146,050 per year

High-cost counties may have higher limits.

The USDA Income Limit Calculator helps compare your adjusted income to your county’s limit.

Gross Income vs. Adjusted Income

This is where many people get confused.

USDA does not just look at your gross income.

They look at adjusted household income.

Gross Income

This includes income from all adult household members, such as:

• Salary or wages
• Self-employment income
• Social Security
• Retirement income
• Disability income
• Child support

Before taxes.

Adjusted Income

Adjusted income is your gross income minus eligible deductions.

If your adjusted income falls below your county limit, you are likely eligible.

USDA Income Deductions Explained

The calculator applies official USDA deductions.

Here is how each one works.

1. Dependent Deduction

You can deduct:

$480 per child or dependent

This includes:

• Children under 18
• Full-time students over 18
• Disabled dependents

Example:

If you have 2 children:

2 × $480 = $960 deduction

2. Elderly Household Deduction

If the head of household or spouse is:

• 62 years or older
• Or legally disabled

You receive a:

$400 flat deduction

You must check the “Elderly Household” box in the calculator to apply this.

3. Childcare Expense Deduction

You can deduct:

Actual childcare expenses

These must:

• Be for children under 13
• Allow a household member to work

If you pay $5,000 per year in childcare, that full amount may be deducted.

4. Medical Expense Deduction (Elderly Households Only)

If your household qualifies as elderly:

You may deduct medical expenses that exceed:

3% of your gross income

Example:

• Gross income: $80,000
• 3% threshold: $2,400
• Medical expenses: $5,000

Deductible amount:

$5,000 – $2,400 = $2,600

The calculator automatically handles this math.

How the USDA Income Limit Calculator Works

The calculator follows these steps:

1. Add total adult income
2. Add dependent deduction
3. Add elderly deduction (if applicable)
4. Subtract childcare expenses
5. Subtract eligible medical expenses
6. Compare final adjusted income to county limit

If:

Adjusted Income ≤ County Limit
→ You are likely eligible

If:

Adjusted Income > County Limit
→ Income is too high

The result section shows:

• Eligibility status
• Final adjusted income
• A full breakdown of calculations

This makes it easy to understand exactly how your income was evaluated.

Example Calculation

Let’s walk through a realistic example.

Household:

• 2 adults
• 2 children
• Gross income: $95,000
• Childcare: $6,000
• Not elderly

Step 1: Dependent Deduction

2 × $480 = $960

Step 2: No elderly deduction

Step 3: Childcare deduction

$6,000

Step 4: Adjusted Income

$95,000
– $960
– $6,000

= $88,040

If county limit is $110,650:

$88,040 is below the limit.

Likely eligible.

Why Household Size Matters

USDA income limits increase for larger households.

The calculator automatically adjusts the base limit if:

• Household size is 5 or more
• Default limit is still set to standard

This prevents users from accidentally using the wrong limit.

Always confirm your official county limit before applying.

Where to Verify Official Limits

For official income limits and property eligibility, check the
USDA Rural Development website.

County limits can change each year.

Always verify before submitting a loan application.

Common Mistakes to Avoid

Many applicants misunderstand these points:

• Forgetting to include income from all adults
• Using net income instead of gross income
• Not counting adult children living at home
• Ignoring dependent deductions
• Forgetting medical deduction rules

The calculator reduces these errors by guiding each step clearly.

Who Should Use a USDA Income Limit Calculator?

This tool is helpful for:

• First-time homebuyers
• Families in suburban areas
• Buyers with moderate income
• Households near income limits
• Seniors applying with fixed income

It gives you a quick answer before talking to a lender.

Is This Calculator an Official Approval?

No.

This calculator provides:

A strong eligibility estimate

Final approval depends on:

• Credit review
• Debt-to-income ratio
• Property eligibility
• Lender underwriting

But income eligibility is often the first major hurdle.

Why This Calculator Is Helpful

Instead of guessing, you can:

• See exact deductions
• Understand your adjusted income
• Compare against your county limit
• Make informed decisions

It turns a complex government formula into something clear and usable.