Uniform Act Low Income Calculations

Frequently Asked Questions (FAQ)

1. Question: What is low income for Uniform Act purposes?
   
   Answer: Generally, low income for Uniform Act purposes is income which does not exceed 80 percent of the median family income for the applicable area as determined by the U.S. Department of Housing and Urban Development.
   
   
   
2. Question: Why are there no Uniform Act Low Income Limits for families with more than 8 persons?
   
   Answer: Low Income Limits for families with more than 8 persons are not included in the list because of space limitations. In order to calculate the low-income limit for a family with more than 8 persons a simple calculation must be made.
   
   
   
3. Question: How do you calculate the low income limit for a family with more than 8 persons?
   
   Answer: A simple procedure is used to calculate the low income limit for families with more than 8 persons as follows: 8% of the low income limit for a 4 person family should be added to the low income limit for an 8 person family for each family member in excess of 8 persons. For example, the low income limit for a 10 person family would equal the 8 person low income limit plus 16% (2 x 8%) of the 4 person income limit; The low income limit for an 11 person family would equal the 8 person low income limit plus 24% (3 x 8%) of the 4 person income limit, etc. Income limits are then rounded to the nearest $50.
   

For example:

Mobile, AL - FY 2008 10 person low income limit

8 person limit ($52,250) + 16% (2x8%) of the 4 person limit ($39,600) or more simply:

$52,250 + $6,336 (16% of $39,600) = $58,586

Income limit should then be rounded to nearest $50 or $58,600

Mobile, AL - FY 2008 11 person low income limit

8 person limit ($52,250) + 24% (3x8%) of the 4 person limit ($39,600) or more simply:

$52,250 + $9,504 (24% of 39,600) = $61,754

Income limit should then be rounded to nearest $50 or $61,750