Area median gross income for a project may not fall below the prior calendar year's figure

bond.income_calculation.area_median_gross_income_hold_harmless_floor · v1.0.0

Any determination of area median gross income for a project for a calendar year after 2008 may not be less than the area median gross income determined for that project for the preceding calendar year. The floor is statutory and project-specific: it attaches to the project's own prior-year figure, so two projects in the same area can carry different floors if they entered service in different years. A separate rule at 142(d)(2)(E)(ii) preserves the effect of HUD's 2007-2008 hold harmless policy for projects it impacted. The practical consequence is that a bond project's income and, where a rent limit is derived from it, rent ceilings never decline year over year, even when HUD's published area figure does.

Confidence

high

Effective from

2009-01-01

Last reviewed

2026-08-30