USDA Loan Income Limits by County 2026: Find Out If You Qualify
Last updated 12/05/2025 by
Ante MazalinEdited by
Andrew LathamSummary:
USDA income limits determine who qualifies for zero-down home loans under the U.S. Department of Agriculture’s Rural Development program. These limits vary by county, household size, and program type. Generally, your household income must be at or below 115% of your area’s median income (AMI). Knowing your county’s limits and how income is calculated helps you confirm eligibility before you apply.
USDA home loans make homeownership possible for low- to moderate-income families in eligible rural and suburban areas. However, not everyone qualifies. Each year, the U.S. Department of Agriculture updates USDA loan income limits by county based on local cost of living and median income levels. Let’s break down how these limits work, how to check yours, and what to do if you’re just above the cutoff.
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What Are USDA Loan Income Limits?
The USDA sets income caps to ensure the program serves families who truly need affordable housing. These limits are based on Area Median Income (AMI) and adjust by household size. The general rule is that your total household income can’t exceed 115% of your county’s AMI.
- For a 1–4 person household: Base limit is lower (varies by county).
- For 5–8 person households: The limit increases to reflect larger family needs.
- Each additional person typically adds about 8% to the base limit.
Good to Know: “Household income” includes all adults living in the home—even if they aren’t on the loan application.
How to Check Your County’s USDA Income Limit
You can verify your local limit using the USDA’s official eligibility tool:
- Go to the USDA income eligibility website.
- Select your state and county.
- Enter your household size and total income.
- The tool will automatically tell you whether your income qualifies.
Example: USDA Income Limits by County
Below is a simplified example showing typical USDA loan income caps in select areas for a family of four (based on 2025 estimates):
| State | County | 1–4 Person Household | 5–8 Person Household |
|---|---|---|---|
| California | Riverside County | $123,700 | $163,200 |
| Texas | Travis County | $117,800 | $155,600 |
| Florida | Orange County | $114,700 | $151,500 |
| Kentucky | Jefferson County | $103,500 | $136,500 |
What Counts as Income?
The USDA looks at gross household income—before taxes and deductions—and may adjust it using allowable deductions. Here’s what counts:
| Included in Household Income | Common Deductions |
|---|---|
| Wages, overtime, bonuses, self-employment income, commissions, alimony, and certain benefits | Childcare expenses, dependents, medical expenses for elderly or disabled household members |
Smart Move: If your income is slightly above the limit, allowable deductions may bring you back into eligibility.
How Income Limits Affect Eligibility
- Too high: You may not qualify for a USDA loan but could explore FHA or conventional loans.
- Within limits: You’re likely eligible if your credit, property, and debt-to-income also meet USDA standards.
- Too low: You may qualify for a USDA Direct Loan instead, which includes payment assistance.
Alternatives if You Exceed USDA Income Limits
- FHA Loan – Allows higher income and broader property eligibility, requires only 3.5% down.
- VA Loan – 0% down for eligible veterans and service members, no income caps.
- Conventional Loan – Flexible underwriting for borrowers with stronger credit and steady income.
Key takeaways
- USDA income limits vary by county, household size, and year.
- Most areas cap eligibility at 115% of Area Median Income (AMI).
- All household income counts—even for non-borrowing adults.
- Deductions like childcare and medical expenses can help you qualify.
Next Steps in Your Homebuying Journey
Confirm your household income and check property eligibility to see if you qualify for a USDA loan. Then, compare offers from USDA-approved lenders to find your best rate.
Smart Move:Compare USDA lenders to find flexible programs that fit your income and location.
Related USDA Loan Articles
- What Is a USDA Loan? – Overview of the program and benefits.
- USDA Loan Requirements – Borrower, income, and property rules.
- USDA Loan Property Eligibility – How to check if your home qualifies.
- USDA Loan Closing Costs – Fees, guarantee charges, and how to save.
- USDA vs FHA Loan – Compare zero-down and low-down-payment options.
FAQs
What is the maximum income for a USDA loan?
It depends on your county and household size. Typically, your total household income must not exceed 115% of the local area median income. You can check your limit on the USDA’s eligibility website.
What income counts toward USDA eligibility?
All household members’ income is included—wages, overtime, self-employment, commissions, and even certain benefits. The USDA also allows deductions for dependents and childcare, which can reduce your adjusted income.
Can you be denied a USDA loan for making too much?
Yes. If your household income exceeds your county’s USDA cap, you won’t qualify for a guaranteed loan. However, you may be eligible for FHA, VA, or conventional options instead.
Do USDA loans require a job?
You’ll need verifiable, stable income—but it doesn’t have to come from a traditional job. Self-employment, pensions, Social Security, and certain benefits can all count as long as they’re reliable and documented.
What disqualifies a home from USDA financing?
Homes outside eligible rural or suburban areas don’t qualify. Other disqualifiers include investment properties, vacation homes, and houses in poor condition that don’t meet USDA’s safety or livability standards.
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