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URA Low Income Calculation Example / 2024

49 CFR 24.402(b)(2)(ii)

The Uniform Act states that an eligible displaced person who rents a replacement dwelling is entitled to a rental assistance payment which is calculated in accordance with §24.402(b). One factor in this calculation is to determine if a displaced person's average monthly gross income is classified as "low income," as defined by the U.S. Department of Housing and Urban Development's (HUD) annual survey of income limits shown on the Uniform Relocation Act FY2024 Income Limits page.

To make such a determination, the Agency must follow the steps listed below:

• Open this link for the HUD FY2024 Income Limit Area Definitions. Alternately, go to HUD's FY 2024 Uniform Relocation Act Income Limits page on HUD's web site where the link to the list of Income Limit Area Definition in pdf (243 KB) is available under Low Income Limit Technical Resources.
• Select the page(s) for the State where the displacement dwelling is located.
• Identify the locality for the displacement dwelling.
  • Metropolitan Area
    • Counties of FMR AREA with State - income data is included with Metropolitan Area to the left.
      Note: Some Metropolitan Areas incorporate the additional areas listed on the right side under the HUD Metro FMR Area (HMFA) column; in these situations, you will use the Metropolitan area name on the left as your location.
  • Nonmetropolitan Counties
    Note: Nonmetropolitan counties are listed alphabetically below each State.
• Next, go to HUD's FY2024 Uniform Relocation Act (URA) Low Income Limits tables by selecting this link Uniform Relocation Act FY2024 Income Limits. Alternately, select this link Uniform Relocation Act Income Limits and then select the link for the Low Income Limits in pdf (309 KB) under Low Income Limit Technical Resources.
  • Select the applicable State from the Uniform Relocation Act (URA) FY2024 Income Limits tables.
• Using the displacement dwelling location information from the Metropolitan Area or Nonmetropolitan County above, locate the corresponding 80% Low Income Limit for the displaced household based on the number of person(s) in the displaced household.
• The 80% Low Income Limit determined from the above, must then be compared to the displaced person's household income (see the 49 CFR §24.2(a) Household income definition), which is the gross annual income received by the displaced person/family, excluding income from any dependent children and full time students. See the content of FAQ number 105 below for full time student considerations and an explanation of items excluded from household income.
• If the gross annual household income for the eligible displaced household is less than or equal to the 80% Low Income Limit determined from the above, the displaced household's income is considered to meet the "low income" classification for URA purposes (49 CFR §24.402(b)).

For example:
Tom and Mary Smith and their three children are being displaced. The information obtained from the family and verified by the Agency is as follows:

• Tom Smith, employed, earns $35,000/yr.
• Mary Smith, receives disability payments of $12,000/yr.
• Tom Smith Jr., 21, employed, earns $18,000/yr. (Income is included because he is not a full time student).
• Mary Jane Smith, 17, student, has a paper route, earns $5,000/yr. (Income is not included because she is a dependent child and a full time student).
• Sammie Smith, 10, dependent child and full time student, no income.

The Smith family's gross annual household income = $65,000
($35,000 + $12,000 + $18,000 + $0 + $0 = $65,000)

• The displacement dwelling is located in the State of MD, Caroline County.
• The low income limit for a 5 person family in Caroline County, MD = $73,450 (Based on FY 2024 income limits).
• The Smith family's income of $65,000 is less than the HUD low income limit of $73,450.

The Smith family's income is considered to meet the 80%"low income" classification for purposes of the Uniform Act.

Note: The Uniform Act and Right of Way FAQ number 105 (found on the page at this link) for §24.402(b)(2)(ii) asks: What is excluded from household income when calculating the replacement housing payment for low-income tenants?

Answer: Household income does not include income received or earned by dependent children or full-time students under 18 years old per the §24.2(a) Household income definition. However, full-time students over 18 may be assumed to be a dependent, unless the person demonstrates otherwise. It also does not include benefits that are not considered income by Federal law, such as food stamps, or the Women Infants and Children (WIC) program. For a more detailed list of income exclusions, see Federally Mandated Exclusions from Income under Real Estate Topics of Special Interest.