What Are the Requirements for Low-Income Housing in Texas?

To qualify for low-income housing in Texas, your household’s annual gross income must fall below a limit that HUD sets each year for your county, your net assets must stay under a federal cap, every household member must be a U.S. citizen or have eligible immigration status, and no one in the household can have certain disqualifying criminal history. Local Public Housing Authorities (PHAs) handle applications and add their own screening on top of the federal rules, so the exact bar you have to clear depends partly on where in Texas you apply.

Income Limits by County and Family Size

Income is the first test. HUD publishes limits every year based on the Area Median Income (AMI) in each county or metro, and those limits scale with household size. The FY 2025 limits are currently in effect; FY 2026 limits are expected in May 2026 after a data delay.¹

HUD sorts applicants into three tiers:

Extremely low income: at or below 30% of the area median
Very low income: at or below 50% of the area median
Low income: at or below 80% of the area median

The dollar figures differ sharply across the state. A family of four in the Abilene metro area currently qualifies as extremely low income at $26,200 or less, very low income at $43,650, and low income at $69,850.² Higher-cost metros like Austin and Dallas have noticeably higher thresholds. You can look up the exact figures for your county and household size on the Texas Department of Housing and Community Affairs (TDHCA) income limits page.³

Housing Choice Vouchers and public housing are open to households in all three tiers, though PHAs must target most of their assistance to extremely and very low income families. Low-Income Housing Tax Credit (LIHTC) apartment complexes, which you apply to directly rather than through a PHA, typically cap eligibility at 60% of AMI.

What Counts as Income

Annual gross income covers wages, overtime, and bonuses before payroll deductions for every household member 18 or older. It also includes Social Security payments, pensions, disability benefits, child support, and alimony.⁴ Earned income from children under 18 does not count, and neither do foster care payments, insurance settlements for personal injury, or most financial aid for education.⁵

Before comparing your income to the limit, the PHA subtracts certain deductions. Effective January 1, 2026, those include $500 per dependent (each household member who is under 18, disabled, or a full-time student, other than the head of household or spouse) and a $550 flat deduction for elderly or disabled households where the head, spouse, or sole member is 62 or older or has a disability.⁶ Childcare expenses that let a household member work or attend school, and certain medical expenses for elderly or disabled households, may also be deductible depending on your PHA’s policy.

Asset Limit

Income isn’t the only financial test. If your household’s net assets exceed $105,574, you are ineligible for public housing, Housing Choice Vouchers, and other Section 8 programs. That is the 2026 figure and adjusts annually for inflation.⁶

Net assets include bank accounts, investments, retirement accounts, and real property. If your total net assets are above $52,787 but under the eligibility cap, the PHA adds imputed income at a passbook savings rate of 0.40% when it cannot determine the actual returns on those assets.⁵ If your net assets are $52,787 or less and produce no calculable income, nothing is imputed.

One trap: if you gave away or sold assets for less than fair market value within the two years before applying, the PHA can count the difference as though you still own those assets.⁷

Citizenship and Immigration Status

Federal housing assistance is limited to U.S. citizens and noncitizens with eligible immigration status, and every household member’s status must be verified before admission.⁸ Mixed households, where some members qualify and others don’t, can still receive assistance, but the subsidy is prorated based on the number of eligible members.⁹

Criminal History Bars

PHAs run background checks on every applicant household. Some records trigger mandatory denial, with no PHA discretion:

A conviction for methamphetamine production on federally assisted housing premises is a permanent, lifetime ban from all federal housing programs.¹⁰
Any household member subject to a lifetime sex offender registration requirement under a state registry is permanently barred.¹¹
A prior eviction from federally assisted housing for drug-related criminal activity brings a three-year ban from the date of eviction. A PHA can make an exception if the person completed a supervised drug rehabilitation program or if the circumstances no longer exist, for example if the person is imprisoned or deceased.¹⁰

PHAs must also deny admission when they have reasonable cause to believe a household member is currently using illegal drugs or has a pattern of alcohol abuse that would threaten other residents’ health and safety.¹⁰

Beyond those federal minimums, each PHA sets its own screening criteria for other criminal history. What disqualifies you in one Texas city may not in another, so if you have a record short of the mandatory bars, check the specific PHA’s Administrative Plan.

Rental History

PHAs also contact prior landlords. A pattern of evictions for nonpayment or serious lease violations is grounds for denial, though each PHA decides how heavily to weigh it. A single old eviction is less likely to be disqualifying than a recent string of them.

Documents to Have Ready

Missing paperwork is the fastest way to stall an application. Gather these before you apply:

Social Security numbers for every household member age six and older, government-issued photo ID for everyone 18 and older, and birth certificates for all members.¹²
Proof of citizenship or eligible immigration status: a U.S. passport, U.S. birth certificate, or permanent resident card for each household member.
Recent consecutive pay stubs, Social Security award letters, TANF award letters, and court orders or Child Support Enforcement Agency printouts showing current payment amounts.
Recent bank statements for all accounts, plus documentation for retirement accounts, investments, or real property.
Names and contact information for current and past employers and landlords so the PHA can perform third-party verification.

Every household member 18 or older must sign a consent form authorizing the PHA to obtain information from third parties and verify income through federal databases.¹²

Where to Apply

There is no single statewide application. Each local PHA runs its own program with its own waiting list. TDHCA administers the Housing Choice Voucher program in a 34-county service area and oversees the state’s tax credit programs, but it is one PHA among many across Texas.¹³ To find the right PHA for your area, call HUD’s Public and Indian Housing Resource Center at (800) 955-2232 or dial 211 for local referrals.¹⁴

The typical process has two stages. You first submit a short pre-application with basic information about your household, income, and any local preferences you qualify for. If you appear to meet preliminary criteria, the PHA puts you on a waiting list.¹⁵ When your name reaches the top, the PHA contacts you for a full application, supporting documents, and an eligibility interview.

Waiting lists in many Texas cities run long, and some PHAs close their lists when demand outpaces supply. If a list is closed, watch for reopenings and consider applying to PHAs in neighboring jurisdictions. Keep your contact information current everywhere you’ve applied; if the PHA can’t reach you when your name comes up, you lose your place.

After You Qualify

Approval isn’t a permanent status. Every year the PHA conducts a reexamination to confirm you still meet the requirements, and you must submit updated income and asset documentation and report any changes to your household.¹⁶ Between annual reviews you’re expected to report significant changes as they happen, such as someone moving in or out or a shift in income. Failing to report can lead to overpayment you’ll owe back, or termination in serious cases.

You also won’t live rent-free. Your share of the rent, called the Total Tenant Payment, is generally 30% of your monthly adjusted income, and PHAs set a minimum rent between $0 and $50 per month. Hardship exemptions from the minimum are available for situations like job loss, a pending benefits determination, imminent eviction, or a death in the family.¹⁷

If a PHA denies your application, the written notice must explain the reasons and tell you how to request an informal review. You have the right to present written or oral objections, and the reviewer must be someone other than the official who made the original decision or that person’s subordinate.¹⁸ Deadlines vary by PHA, so read the denial letter carefully and act quickly.

1
HUD User. Statement on FY 2026 Median Family Income Estimates
2
HUD User. FY2025 Adjusted HOME Income Limits – Texas
3
Texas Department of Housing and Community Affairs. Income and Rent Limits
4
Department of Housing and Urban Development. Attachment A – Section 8 Definition of Annual Income
5
eCFR. 24 CFR 5.609 – Annual Income
6
HUD User. 2026 HUD Inflation-Adjusted Values
7
eCFR. 24 CFR Part 5 – General HUD Program Requirements
8
Department of Housing and Urban Development (HUD). PHA Letter on Citizenship and Immigration Status Verification
9
US Department of Housing and Urban Development. Eligibility Determination and Denial of Assistance
10
eCFR. 24 CFR 960.204 – Denial of Admission for Criminal Activity or Drug Abuse by Household Members
11
eCFR. 24 CFR 982.553 – Denial of Admission and Termination of Assistance for Criminals and Alcohol Abusers
12
Department of Housing and Urban Development (HUD). Verification of Social Security Numbers – HUD Verification Guidance
13
Texas Department of Housing and Community Affairs. Housing Choice Voucher Section 8 Housing
14
U.S. Department of Housing and Urban Development (HUD). Texas Information
15
US Department of Housing and Urban Development. Waiting List and Tenant Selection
16
U.S. Department of Housing and Urban Development (HUD). Housing Choice Voucher Tenants
17
eCFR. 24 CFR 5.630 – Minimum Rent
18
eCFR. 24 CFR 982.554 – Informal Review for Applicant