How USDA Loan Income Limits Work by County

USDA income limits change by county and household size, not by state

The USDA sets a maximum income you can earn and still get a rural home loan. That limit is not the same everywhere — it depends on which county you live in and how many people are in your household. A family of four might may have access to in one county but exceed the limit in a neighboring county, even though both are rural.

The USDA updates these limits every year, usually in February. The limits are tied to the median household income in each county. Counties with higher median incomes have higher USDA limits. You can find your county's current limit on the USDA Rural Development website by entering your county name, or by calling your local USDA office.

Income limits are one of several requirements for a USDA loan — you also need to meet credit and debt standards, and the property itself must be in an may be able to access rural area. But the income check happens first, because if you exceed the limit, you cannot proceed regardless of your credit score or down payment.

Key Takeaways

• USDA income limits are set by county and household size, and they change every year in February.
• A family of four in a rural county might have a limit of $90,000, while the same family size in a different county could have a limit of $110,000 or higher.
• You can look up your county's current limit on the USDA Rural Development website or by calling your local USDA office directly.
• Exceeding the income limit disqualifies you from a USDA loan, even if you have excellent credit and a large down payment saved.

How the USDA calculates your household income

The USDA counts income differently than you might expect. It includes wages, self-employment income, rental income, Social Security, pensions, and unemployment benefits. It also includes income from household members who will live with you, even if they are not on the loan.

The USDA does not count certain income: child support you receive, some types of disability payments, and money from assets you own (like savings account interest). If you are self-employed, the USDA looks at your tax returns from the past two years to average your income.

You will need to provide recent pay stubs, tax returns, and a written statement of all income sources when you apply. The lender verifies this with your employer and the IRS. If your income fluctuates — for example, you work seasonal jobs — the USDA averages it over time rather than using your highest year.

Finding your county's specific limit

Go to the USDA Rural Development website and use their income limit lookup tool. You enter your state and county, select your household size, and the tool shows you the maximum income for that combination. The limits are listed for household sizes of one through eight or more people.

If you cannot find your county online, call your local USDA Rural Development office. They can tell you the limit over the phone and explain whether your income qualifies. The USDA office can also clarify which parts of your county are may be able to access for rural loans, since not all areas within a county boundary may have access to.

Keep the limit number handy when you talk to lenders. Some lenders are more familiar with USDA loans than others, and having the official limit prevents confusion about whether you meet the requirement.

What happens if your income is close to the limit

If your household income is within a few thousand dollars of the limit, you have options. Some income does not count toward the limit — for example, income from a household member who will not live in the home, or certain types of disability payments. If you can exclude some income, you may fall below the limit.

You can also change who is on the loan. If a household member's income pushes you over the limit, and that person does not need to be on the loan, they can be removed from the application. Only people who will live in the home and want to be borrowers need to be included.

Another option is to wait. If your income is expected to drop — for example, you are leaving a job or a household member is moving out — you can time your application for when your income will be lower. The USDA looks at your income at the time you apply, not your projected future income.

Income limits versus debt-to-income ratio

Meeting the income limit is not the same as being approved for the loan amount you want. Even if your income is below the county limit, the lender will also check your debt-to-income ratio — the percentage of your monthly income that goes to debt payments.

The USDA allows a debt-to-income ratio up to 43 percent, though some lenders go as low as 41 percent. This means if you earn $4,000 a month, your total monthly debt payments (including the new mortgage) cannot exceed about $1,720. If you have car loans, credit card payments, student loans, or child support, these all count toward that ratio.

You can have an income well below the county limit and still be turned down if your debt-to-income ratio is too high. Paying down existing debt before you apply can improve your chances.

How income limits affect your loan amount

The income limit does not directly cap how much you can borrow — it only determines whether you are may be able to access for a USDA loan at all. Once you are may be able to access, the lender decides your loan amount based on your income, debts, credit score, and the property value.

A lower income means a lower loan amount, because the lender needs to know you can afford the monthly payment. If you are at the top of the income limit for your county, you may not be able to borrow as much as someone with a higher income in a different county.

The property itself also matters. The USDA will not lend more than the home is worth. If you find a home in your price range but it appraises lower than the purchase price, the lender will only finance the appraised value.

What to do if your county's limit seems wrong

Income limits are based on data from the U.S. Census Bureau and the Department of Housing and Urban Development. If you believe your county's limit is inaccurate or unfair, you can contact your local USDA Rural Development office to ask how the limit was set. They cannot change it, but they can explain the methodology.

If you are just over the limit and believe there is an error in how your income was calculated, ask the lender to review the calculation. Bring documentation of any income that should not count, or proof that a household member's income should be excluded.

If you are significantly over the limit and a USDA loan is not an option, ask the lender about conventional loans or other programs. Some rural areas also have state or local loan programs with different income requirements.

Frequently Asked Questions

Do I have to include my spouse's income if we are married?

Yes, if your spouse will live in the home, their income counts toward the limit. If your spouse will not live there, you may be able to exclude their income, though you will need to document this with the lender. Community property states have different rules — ask your lender whether your state affects this.

What if I am self-employed and my income varies a lot year to year?

The USDA averages your self-employment income over the past two years using your tax returns. If you had a very low year followed by a high year, the average might still put you over the limit. Bring your last two years of tax returns and a profit-and-loss statement to show the lender.

Can I reduce my income to may have access to for a USDA loan?

No — you cannot intentionally lower your income to meet the limit. The USDA looks at your actual income at the time you apply. If your income naturally decreases (you leave a job, a household member moves out), you can time your application for when that change takes effect.

Are income limits the same for every type of USDA loan?

Yes, the income limits apply to all USDA home loans, whether you are buying a single-family home, a duplex, or a small farm. The limit depends only on your county and household size, not on the type of property.

What happens if my income goes above the limit after I get the loan?

Once your loan is approved and closed, your income does not matter anymore. You can earn as much as you want without affecting the loan. The income check only happens at the time you apply.