A low-income individual is defined as a person whose income, adjusted for family size, does not exceed certain thresholds. For those living in metropolitan areas, this threshold is set at 80 percent of the area median income. In nonmetropolitan areas, the threshold is either 80 percent of the area median income or 80 percent of the statewide nonmetropolitan area median income, whichever is higher.
The term "low-income individual" is often used in various legal contexts, particularly in programs aimed at economic assistance and support. It is relevant in areas such as:
Individuals who qualify as low-income may access specific legal forms and resources to apply for benefits or assistance, which can be managed through tools like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A family of four living in a metropolitan area has a median income of $60,000. To qualify as low-income, their total income must not exceed $48,000 (80 percent of $60,000).
Example 2: A single person living in a rural area where the statewide nonmetropolitan median income is $50,000 would need to ensure their income is below $40,000 to qualify as low-income (hypothetical example).
This definition is primarily referenced in the Small Business Investment Program under Title 15 of the United States Code, specifically 15 USCS § 689 (2). Other relevant laws may include local housing and social service regulations.
| State | Metropolitan Area Threshold | Nonmetropolitan Area Threshold |
|---|---|---|
| California | 80% of area median income | 80% of statewide nonmetropolitan area median income |
| Texas | 80% of area median income | 80% of area median income |
| New York | 80% of area median income | 80% of statewide nonmetropolitan area median income |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Difference |
|---|---|---|
| Low-Income Individual | A person whose income is below specific thresholds based on family size and location. | Defined by income limits relative to median income. |
| Very Low-Income Individual | A person whose income is significantly lower than the low-income threshold. | Typically set at 50% of the area median income. |
| Income Eligible Individual | A person who meets income criteria for specific programs. | May vary by program, not strictly defined by median income. |
If you believe you qualify as a low-income individual, consider the following steps:
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| Attribute | Details |
|---|---|
| Income Threshold (Metropolitan) | 80% of area median income |
| Income Threshold (Nonmetropolitan) | 80% of area median income or 80% of statewide nonmetropolitan area median income |
| Common Programs | Housing assistance, social services |
Low income is generally defined as earning less than 80 percent of the area median income, adjusted for family size.