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Understanding the Legal Definition of a Low-Income Person
Definition & Meaning
A low-income person is defined as an individual whose income, adjusted for family size, does not exceed certain thresholds. Specifically, in metropolitan areas, this threshold is set at 80 percent of the median income for that area. In non-metropolitan areas, the threshold is the greater of either 80 percent of the area median income or 80 percent of the statewide non-metropolitan area median income. This definition is important for various programs and services aimed at assisting individuals and families with limited financial resources.
Table of content
Legal Use & context
The term "low-income person" is commonly used in legal contexts related to social services, housing assistance, and small business programs. It is particularly relevant in areas such as:
Housing law, where it may determine eligibility for subsidized housing.
Small business assistance programs that provide funding or resources to low-income entrepreneurs.
Public assistance programs aimed at supporting families and individuals in need.
Users can often manage related forms and applications through resources like US Legal Forms, which provides templates drafted by legal professionals.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples illustrating the concept of a low-income person:
A family of four living in a metropolitan area with a median income of $80,000 would be considered low-income if their annual income is below $64,000 (80 percent of the median).
A single individual living in a rural area with a median income of $50,000 would qualify as low-income if their income is below $40,000 (80 percent of the area median income). (hypothetical example)
State-by-state differences
State
Metropolitan Income Threshold
Non-Metropolitan Income Threshold
California
$80,000
$70,000
Texas
$65,000
$55,000
New York
$90,000
$75,000
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Low-Income Person
An individual whose income is below specified thresholds.
Focuses on income levels relative to median income.
Very Low-Income Person
An individual whose income is significantly lower, often below 50 percent of the median.
More restrictive income criteria than low-income.
Common misunderstandings
What to do if this term applies to you
If you believe you qualify as a low-income person, consider the following steps:
Review your income and family size to confirm eligibility based on the thresholds.
Explore assistance programs in your area that may offer support, such as housing assistance or small business grants.
Utilize resources like US Legal Forms to access templates for applications and other necessary documents.
If your situation is complex, consider seeking advice from a legal professional.
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