Understanding the Very Low Income Family: Definition and Implications

Definition & Meaning

A very low income family is defined as a household whose annual income does not exceed 50 percent of the median family income for their area. This determination is made by the U.S. Department of Housing and Urban Development (HUD), which may adjust the income limits for families of different sizes. In some cases, HUD can set income thresholds that are higher or lower than this 50 percent benchmark if it finds that such adjustments are necessary due to unusually high or low family incomes in a specific area.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A family of four living in a city where the median income is $60,000 would qualify as a very low income family if their annual income is $30,000 or less.

Example 2: A single-parent household with an income of $25,000 in an area where the median income is $50,000 would also be considered a very low income family. (hypothetical example)

State-by-state differences

State Income Limit Variations
California Higher income limits in urban areas due to cost of living.
Texas Income limits may be lower in rural areas compared to urban centers.
New York Adjustments made for high-cost areas, particularly in New York City.

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 Difference
Low Income Family A family whose income is above 50 percent but below 80 percent of the median income. Very low income families earn less than 50 percent of the median.
Extremely Low Income Family A family whose income is below 30 percent of the median income. Extremely low income families earn significantly less than very low income families.

What to do if this term applies to you

If you believe you qualify as a very low income family, consider applying for housing assistance programs available in your area. You can start by visiting your local HUD office or exploring the resources available through US Legal Forms, which offers legal templates to assist with applications and appeals. If your situation is complex, it may be beneficial to consult with a legal professional for personalized guidance.

Quick facts

  • Income limit: 50 percent of area median income
  • Eligibility can vary based on family size
  • HUD adjusts limits based on local economic conditions
  • Assistance programs available include Section 8 and public housing

Key takeaways

Frequently asked questions

A very low income is defined as earning less than 50 percent of the median family income for your area.