USDA Loan Income Limits by State [2025 Update]

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USDA Loan Income Limits by State [2025 Update]

The USDA loan program is a federal mortgage program for purchasing housing in rural and some suburban areas. The United States Department of Agriculture backs this type of loan. Its main advantage is 100% financing, which means no down payment is required to buy a home. However, not everyone can get this loan. The key requirement is that your household income must not exceed the set limit for your region and family size. If your income is above the allowable level, you cannot get the loan, even if all other requirements are met.

Income limits are necessary so the program remains available only to low- and moderate-income families. These limits are reviewed every year and differ depending on the county and the number of people in the household. For 2025, the limits have been updated and reflect current economic indicators and average incomes in the regions. If you plan to apply this year, it is important to understand how income is defined, how adjusted income is calculated, where to find the limit for your county, and how all of this is applied in practice. All current limits are published on the official website of the United States Department of Agriculture. This is the only reliable source of information for your region.

What USDA Loan Income Limits Mean 2025

The income limit is the maximum annual income of a family that allows you to qualify for a loan. The household includes everyone living in one home, not just the future borrowers. The lender is required to account for and verify the income of all adult family members.

The United States Department of Agriculture offers two types of single-family loans, each with its own income rules:

  • Guaranteed Loan (Section 502 Guaranteed): Issued by private lenders, and the government acts as a guarantor. For this mortgage, the household’s adjusted income must not exceed 115% of the area median income (AMI).
  • Direct Loan (Section 502 Direct): Issued directly by the United States Department of Agriculture to families with low and very low incomes. To get the loan, income must not be higher than the set limit—usually no more than 80% of the county’s median income (“low income”) or 50% (“very low income”).

For the guaranteed program, the adjusted income is what matters. It differs from gross income—the lender must account for some allowable deductions, which can significantly affect the final amount.

Why Income Limits Are Important for USDA Loan Eligibility

USDA loans help make housing accessible for low-income families. Income limits protect the program from abuse. If there were no restrictions, wealthy buyers could use the preferential mortgage and push out families who need such conditions. That is why the lender is required to confirm that your family’s adjusted income does not exceed the limit set for the specific county. If the income is above the limit, the application will not be considered.

Here, the right strategy matters. If you are close to the limit, small but justified adjustments, such as accounting for all allowed deductions for dependents, childcare, or disability, can lower the adjusted income and make you an eligible candidate.

How USDA Defines and Updates Income Limits

Every year, the United States Department of Agriculture updates the limits based on data from the Department of Housing and Urban Development (HUD) and the Census Bureau. For guaranteed mortgages, the limit equals 115% of the area median income for the specific county. For direct loans, the income levels considered are “low” and “very low.”

Limits are calculated taking into account local wages, standard of living, and housing costs. For example, coastal regions with expensive real estate always have higher limits than remote rural counties. This allows families in different conditions to be compared on an equal basis, considering their actual economic situation.

USDA Income Limits for 2025

In 2025, the base limit for most counties is $119,850 for households of 1–4 people and $158,250 for households of 5–8 people. If the household has more than eight people, the limit increases by 8% of the value for four people for each additional family member. Base values apply only to standard counties. If your region is expensive or part of a large metropolitan area, the limit can be much higher.

USDA tables usually show two ranges: for families of 1–4 people and families of 5–8 people. For example, if you have nine people in your family and the limit for four people in your county is $119,850, then your family’s limit will be $119,850 + (8% × $119,850) = $129,438. All rounding is done according to USDA rules.

First, the lender calculates total income, then subtracts all allowable expenses, and only after that compares the resulting amount with the limit for your county.

Income Limits by State in 2025

In each state, limits differ—they are tied to average wages, standard of living, and real estate prices. For most counties, base values apply, but in expensive metropolitan areas, the limits are higher. Here are examples for different states and regions.

West

  • California: Inland counties are close to base limits, but for Los Angeles, San Diego, and San Francisco areas, limits reach $175,950–$265,100 (for 1–4 people) and $232,300–$349,900 (for 5–8 people).
  • Arizona: In most counties, base limits apply. In Phoenix—$129,000 (1–4) and $170,300 (5–8), in Flagstaff—about $125,400/$165,550.
  • Oregon: For Portland, limits are $142,750/$188,450, for Bend—$131,450/$173,550. Rural regions stick to base values.
  • Washington: Inland counties—base limits, in the suburbs of large cities, the limits are higher.

Midwest

  • Illinois: Rural counties—base limits, in Chicago and Springfield—$137,850/$182,000 and $131,900/$174,150, respectively.
  • Ohio: In Columbus—$125,350/$165,500, in Union County—up to $147,400/$194,600.
  • Minnesota: Base limits, near cities—slightly higher.

South

  • Texas: Mainly base values apply. In some counties, the limits may be higher. There is a wide range by region in Texas.
  • Georgia: Rural counties—base values, in Atlanta suburbs—higher.
  • Florida: Inland counties—base values, in coastal areas and metropolitan regions, limits are higher.

Northeast

  • New York: In northern counties, limits are higher near large cities.
  • Pennsylvania: Rural counties—base values, in Philadelphia—$137,300/$181,250.
  • Maine: Base limits or a little higher, tourist infrastructure areas—individually set.

To find out the limit for your county, use the official USDA online tool—it provides the most accurate and up-to-date data.

Income Limits in Rural and Suburban Areas: Differences

The United States Department of Agriculture has its definition of what is considered a rural area. Small towns, city outskirts, and suburbs are often included in the program. For preferential mortgages, what matters is not so much the type of settlement but its status by population and other USDA criteria. At the same time, the limits themselves are tied not to “rural/urban” status but to the average income in the region. Eligibility for real estate and income are two separate checks.

Even if two neighboring towns are considered rural, their income limits can be different because AMI is calculated by county, not by town. Always check both conditions: property status and income limit.

How Family Size Affects the Income Limit

The larger the family, the higher the limit. For families of 1–4 and 5–8 people, base ranges apply, starting from $119,850 and $158,250, respectively. For each member above eight, the limit increases by 8% of the four-person limit. This is standard for 2025.

The household includes everyone living in the home, not just the borrower. This is the spouse, adult children, parents, students, and any adult family members with income. The income of each adult is considered by the lender when reviewing the application.

What Incomes Are Counted Toward the Limit

USDA includes a broad range of incomes in the calculation:

  • Wages, salaries, bonuses, tips, overtime.
  • Self-employment income, rental income (net of expenses).
  • Pensions, Social Security, disability payments, unemployment benefits, and public assistance.
  • Alimony and child support, if paid by court order.
  • Interest and dividends from deposits, investments.

All of this is summed to form the household’s gross income. Then, possible deductions are applied to get the adjusted annual income.

Gross and Adjusted Income: What Is the Difference

For the income limit calculation, adjusted income is used, not gross income. After summing all income, you can deduct:

  • $480 for each dependent (including full-time students if they are not the applicant/co-applicant/spouse).
  • $400 per family if the household includes a senior (over 62 years) or a person with a disability.
  • Actual childcare expenses for children under 12 years, allowing adults to work or study.
  • Disability expenses, if necessary, for a family member to work.
  • Medical expenses not reimbursed by insurance, if the family consists of seniors or people with disabilities, and these expenses exceed 3% of annual income.

These deductions lower the adjusted income. Proper accounting of all deductions is especially important if your income is close to the limit—it can be decisive.

How to Find Out Your Income Limit

The algorithm is simple:

  1. Open the official USDA website.
  2. Select the “Single Family Guaranteed Housing” program.
  3. Specify the state and county.
  4. Enter household size.
  5. Receive the income limit and check your adjusted income.

What to Do If Your Income Exceeds the Limit

If, after all deductions, your income exceeds the limit, you cannot get a USDA loan. But there are options:

  • Double-check your documents. Sometimes eligibility for deductions is not included, and after correcting errors, the income becomes allowable.
  • Make sure you selected the correct county. Sometimes limits differ even between neighboring regions.
  • Follow updates to the limits. USDA adjusts them annually, usually at the beginning of summer. If the limit increases, you may have a chance next year.
  • Consider alternatives. FHA, VA (for military), and conventional mortgage loans—each has its own rules regarding income, down payment, credit history, and insurance.

Each option has its own rules, but a mortgage specialist can help you make the best choice based on your situation.