FY 2011 Income Limits Documentation System

FY 2011 Very Low-Income (50%) Income Limits Calculation

The income limit calculations shown below are the same as those used for HUD's assisted housing programs.

The 4-person Very Low-Income Limit (VLIL) is based on 50% of the median family income estimated for the Pinellas County, Florida. For a discussion, of the estimated median family income please read here.

Once the median family income is estimated and a preliminary 4-person Very Low-Income Limit is calculated (as 50% of median family income) a series of comparisons required by statute are made:

  1. High Housing Cost Adjustment: The 4-Person VLIL is increased if it would otherwise be less than the amount at which 35 percent of it equals 85 percent of the annualized two-bedroom Section 8 FMR (this adjusts income limits upward for areas where rental housing costs are unusually high in relation to median income);

  2. Low Housing Cost Adjustment:The 4-Person VLIL is reduced to the greater of 80 Percent of the U.S. median family income level, or the amount at which 30 percent of it equals 100 percent of the two-bedroom FMR (this adjusts income limits downward for areas of unusually high median family incomes);

  3. State Non-Metro Median Family Income Adjustment: The 4-Person VLIL is also adjusted if it would otherwise be lower than 50% of the State Non-Metro Median Family Income.

As of FY2010, HUD has discontinued its use of the hold harmless policy that has been in place for several years. For further information, please review our Federal Register Notice, released May 14, 2010. However, in order to minimize program management problems, HUD has devised and implemented a set of maximum and minimum changes for income limits. Consequently, the FY2011 Income Limits cannot change more than the greater of 5 percent or twice the national average change in median family income. For FY2011, the national change in median family income is -0.311 percent, therefore the maximum change amount is 5 percent.

NOTE: Income Limits are rounded to the nearest $50 and in order to make it easier for those wishing to replicate HUD's calculations, the rounded 4-person income limit is used to calculate other family size income limits instead of the unrounded 4-person income limit.


The results of the 4-Person Very Low-Income Limit Calculation Process

Pinellas County , FL Results

The estimated FY2011 Median Family Income and preliminary 4-Person Very Low-Income Limit for Pinellas County, Florida are:

Area FY 2011 Estimate of
Median Family Income
Preliminary 4-Person
Very Low-Income Limit
Pinellas County , FL $55,700 $27,850

  1. The High Housing Cost adjustment calculations follow:

    Area 2BR FMR 85% of Annualized 2BR FMR 35% of Preliminary 4P VLIL Comparison High Housing Cost Adjustment
    Pinellas County , FL $958 $9,772 $9,748 Is $9,748 < $9,772
    Yes
    Yes
    4 Person VLIL
    =
    85%*Annualized FMR / 35%
    =
    $27,900

  2. The Low Housing Cost adjustment calculations follow:

    As can be seen from the item above, Pinellas County , FL, has a High Housing Cost Adjustment. Therefore a low housing cost comparison is not made.

  3. State non-metro Median Family Income Adjustment

    Area 50 Percent of State Non-Metro
    Median Family Income
    Comparison State Median Family Income Adjustment
    Pinellas County , FL $45,300 * 0.5
    =
    $22,650
    Is $27,900 < $22,650
    No
    No
    4 Person VLIL
    =
    $27,900

Once the final 4-Person income limit has been established, calculation of income limits for other family sizes is straight-forward. The 1-Person family Income Limit is 70% of the 4-Person Income Limit. The 2-Person family Income Limit is 80% of the 4-Person Income Limit, the 3-Person family Income Limit is 90% of the 4-Person Income Limit, the 5-Person Income Limit is 108% of the 4-Person Income Limit, the 6-Person Family Income Limit is 116% of the 4-Person Income Limit, the 7-Person family Income limit is 124% of the 4-Person Income Limit, and the 8-Person Family Income Limit is 132% of the 4-Person Income Limit. For family sizes larger than 8 persons, the income limit can be calculated by adding an additional eight (8) percent per person to the next lower limit. For example a 9-Person Family Income Limit is 140% (132% + 8%), and so on.

4-Person Income Limits are rounded to the nearest $50, subject to caps and floors. All other Income Limits are rounded up to the nearest $50 to ensure that they do not violate the 5% floor. Also, in order to make it easier for those wishing to replicate HUD's calculations, the rounded 4-Person income limit is used to calculate other family size income limits instead of the unrounded 4-Person income limit.

Although the Pinellas County , FL received a High Housing Cost Adjustment as calculated above, the preliminary Income Limit Value of $27,900 is not the final 4-person Income Limit of $28,250. Consequently, the final 4-Person Income Limits associated with Pinellas County , FL are subject to HUD's newly imposed floor on the annual change in Income Limits.

Because HUD no longer enforces the Hold Harmless Policy from past years, HUD determined that allowing income limits to rise or fall precipitously was not in the best interests of managing the section 8 housing choice voucher program. Therefore, as stated above, the maximum change that can be experienced in any area in one year is the greater of 5 percent or twice the change in national median family income from last year to this year. In FY2010, the national median family income was estimated to be $64,400. In FY2011 the national median family income is $64,200. The percent change from FY2010 to FY2011 is -0.311%. Twice this change is -0.621%. Although the FY2011 national median family income is lower than the FY2010 median, HUD looks at the absolute value of the change to determine the maximum and minimum thresholds. Since 5% is greater than 0.621% the maximum change in Income Limits for FY2011 is 5.0%. The table below depicts the unrestricted income limits for FY2011, the maximum limits allowed at 5.0%, and the final FY2011 Income Limits.

FY 2011 Income Limit Change Comparison
Pinellas County , FL
Income Limit Information 1-Person 2-Person 3-Person 4-Person 5-Person 6-Person 7-Person 8-Person
FY 2011 Prelim VLIL $19,550 $22,300 $25,100 $27,900 $30,150 $32,350 $34,600 $36,850
FY 2010 VLIL $20,800 $23,800 $26,750 $29,700 $32,100 $34,500 $36,850 $39,250
Maximum Change (5.0%) from
FY 2010 Final VLIL
$19,800 $22,600 $25,450 $28,250 $30,550 $32,800 $35,050 $37,300
Floor Required? Yes Yes Yes Yes Yes Yes Yes Yes
FY 2011 FINAL VLIL $19,800 $22,600 $25,450 $28,250 $30,550 $32,800 $35,050 $37,300


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