HUD Public Housing 2025: Income Limits & HOTMA Changes

Finding an apartment you can afford is getting harder every year. In many cities, rent takes up 50% or more of a paycheck.

HUD Public Housing is designed to fix that math.

Unlike Section 8 vouchers (where you find a private landlord), Public Housing involves living in an apartment complex owned and managed by the government (the local Public Housing Agency, or PHA).

The deal is simple: You pay 30% of your income for rent.

• If you earn $2,000 a month, your rent is $600.
• If you earn $500 a month, your rent is $150.
• If you have $0 income, your rent is usually $0 (or a small minimum like $25).

New for 2025: The “HOTMA” laws have kicked in, changing the rules on assets and income reviews. Here is what you need to know to get—and keep—your home.

Key Details at a Glance

What This Opportunity Offers

1. Deep Affordability There is no other housing program that adjusts so perfectly to your financial situation. If you lose your job tomorrow, your rent drops to near zero next month. You don’t have to worry about eviction just because your hours were cut.

2. Stability Public housing leases are indefinite as long as you follow the rules and stay income-eligible. You don’t have to worry about a landlord selling the building or raising the rent by $500.

3. Community Services Many Public Housing developments have on-site perks you won’t find in cheap private apartments:

• After-school programs for kids.
• Job training centers.
• Senior centers with meal delivery.
• On-site management and maintenance.

MAJOR UPDATE: 2025 HOTMA Changes

The Housing Opportunity Through Modernization Act (HOTMA) is fully effective in 2025. This changes the rules significantly:

1. The $100,000 Asset Cap Previously, you could have $1 million in the bank and still qualify if your income was low.

• New Rule: If you have more than $100,000 in net assets (savings, stocks, real estate), you are ineligible for public housing.
• Exception: Retirement accounts (401k, IRA) and settlements for personal injury generally do not count toward this limit.

2. Fewer Income Reviews

• Old Rule: If your income went up by $200, you had to report it immediately, and your rent went up.
• New Rule: You only have to report income increases during your annual review. You get to keep 100% of your raise for the rest of the year! (Note: You can still report income decreases immediately to lower your rent).

3. Over-Income Limit (120% AMI) If your income rises above 120% of the Area Median Income for 24 consecutive months, you must either move out or pay full market rent. You can no longer stay in public housing indefinitely if you become high-income.

Who Should Apply

1. Extremely Low-Income Families If you are making minimum wage or relying on benefits like TANF/SSI, the private market is mathematically impossible. Public housing is built for you.

2. Seniors (Age 62+) Many PHAs have “Senior Only” buildings. These are often high-rise apartments with elevators, community rooms, and grab bars in the bathrooms. They are quiet, safe, and affordable.

3. People with Disabilities PHAs are required to have accessible units. If you need a wheelchair-accessible apartment but can’t afford the premium rents of new “luxury” buildings, apply here.

Insider Tips for a Winning Application

1. Apply to Multiple Agencies You are not limited to the city where you live.

• Strategy: If you live in Atlanta, apply to the Atlanta Housing Authority, but also apply to Marietta, Decatur, and College Park. Smaller suburban agencies often have shorter waitlists than the big city agencies.

2. Update Your Address Religiously This is how 50% of people lose their spot.

• The PHA will mail you a letter once a year asking, “Are you still interested?”
• If the letter comes back “Return to Sender,” they delete you from the list.
• Tip: If you move, call every PHA you applied to and update your address immediately.

3. Claim Your “Preferences” PHAs rank people based on points, not just time. You get extra points for:

• Being homeless.
• Being a veteran.
• Being a victim of domestic violence.
• Working (at least 20-30 hours a week).
• Living locally.
• Action: Check every box that applies to you. It can jump you ahead of 1,000 people.

Application Timeline

• Step 1: Find open waitlists on the PHA website.
• Step 2: Submit the preliminary application (usually online).
• Step 3: Wait. (This is the hardest part).
• Step 4: Receive a “Selection Letter” inviting you to an interview.
• Step 5: Bring all your docs (birth certificates, SS cards, pay stubs) to the interview.
• Step 6: Pass the background check.
• Step 7: Sign the lease and move in.

Required Materials

• Social Security Cards: For every member of the household.
• Birth Certificates: For every member.
• Photo ID: For all adults.
• Proof of Income: Pay stubs, award letters (SSDI, TANF).
• Asset Statements: Bank statements (to prove you are under the $100k limit).
• Landlord References: Names and numbers of where you lived for the last 5 years.

What Makes an Application Stand Out

Completeness. When the PHA pulls your name, they want to move fast. If you show up to the interview with every document organized in a folder, you make their job easy. If you have to “come back later” with a missing SS card, they might move to the next person.

Common Mistakes to Avoid

1. Missing the “Purge” Letter As mentioned, watch your mail. If you don’t respond to the annual update letter, you are gone.

2. Adding Unauthorized People Do not let your boyfriend/girlfriend move in without adding them to the lease.

• Risk: If maintenance sees an unauthorized person living there, you can be evicted and banned from federal housing for years.

3. Ignoring the “Community Service” Rule If you are an adult who is not working, not disabled, and not elderly, you are required to do 8 hours of community service per month. If you don’t do it, they won’t renew your lease.

Frequently Asked Questions

Can I have pets? Yes! Public housing allows pets (usually one dog or cat), but there are size limits and a pet deposit.

Can I be evicted? Yes. You must pay your rent on time and follow the rules. It is a lease like any other.

Does my rent go up if I get a raise? Yes, but under the new HOTMA rules, it might not go up until your next annual review. This gives you time to save money.

Can I buy the unit? Sometimes. Some PHAs have a “Section 32” homeownership program where you can buy your public housing unit.

How to Apply

1. Find your local PHA: Use the HUD tool here.
2. Check their website: See if the “Public Housing” waitlist is open.
3. Apply Online.

Official HUD Page