Loan limits

2026 USDA Loan Income Limits

Editorial Team · Updated July 1, 2026

For 2026, the standard USDA guaranteed loan income limit is $119,850 for a household of one to four people and $158,250 for a household of five to eight, and it applies across most of the country. The cap is set at 115% of the area median income, so higher-cost regions carry higher limits.

USDA loans are the only mainstream mortgage with both no down payment and an income ceiling — they are meant for low-to-moderate-income buyers in eligible rural and suburban areas. Because the limit is tied to local median income, it varies county by county; the figures here are the baseline that covers most areas.

Standard 2026 USDA income limits

These standard figures apply to the majority of U.S. counties. In designated high-cost areas the limits are higher — in the most expensive markets they can exceed $200,000 for a small household. The USDA eligibility tool shows the exact figure for any address.

USDA guaranteed loan income limits — standard areas (2026)

Household size	Standard income limit
1–4 members	$119,850
5–8 members	$158,250

How the limit is calculated

USDA caps household income at 115% of the area median income (AMI) for the county. Two things make the real test more forgiving than the headline number: USDA counts the whole household, but it also lets you subtract certain amounts — allowances for dependents, childcare, and some medical costs — before comparing to the limit. That "adjusted" income is what has to fall under the cap, so some households qualify even when their gross pay looks high.

Whose income counts

USDA counts the income of every adult member of the household, whether or not they are on the loan — stricter than most mortgages, which look only at the borrowers. The deductions above are the counterweight: they can bring an over-the-limit household back under it.

Guaranteed vs Direct loans

The figures on this page are for the USDA Guaranteed Loan program (Section 502 Guaranteed), the common option offered through regular lenders. USDA also runs a Direct Loan program for low- and very-low-income buyers, which has much lower income limits and is funded by USDA itself. If your income is well below the guaranteed cap, the Direct program may offer a better rate.

Eligibility is income and location

Income is only half of USDA eligibility — the home must also sit in an eligible rural or suburban area, and much of the map outside major city cores qualifies. Check both the property address and your household income on the USDA tool before assuming you are in or out.

What changed for 2026

USDA raises these limits most years, typically around May or June, in step with rising area median incomes. The 2026 standard limits ($119,850 and $158,250) are up from the prior $112,450 and $148,450. Because the update lands mid-year and varies by county, always confirm the current figure for your area before you rely on it.

Sources

Put the numbers to work

USDA Loan Calculator

Estimate a USDA loan: 0% down for eligible rural buyers, with its guarantee and annual fees.

Home Affordability Calculator

Work backward from your income and debts to the home price and mortgage you can responsibly afford.

Mortgage Calculator

Estimate your monthly principal-and-interest payment and see a full amortization schedule for any home loan.

Related reference

Frequently asked

What is the USDA loan income limit for 2026?

In most areas the 2026 standard limit is $119,850 for a household of one to four people and $158,250 for five to eight. Higher-cost counties have higher limits, and the cap is 115% of area median income.

How does USDA calculate income?

USDA counts the income of every adult in the household, then subtracts certain allowances — for dependents, childcare and some medical costs — to reach "adjusted" income. That adjusted figure must fall under the limit for your county.

Whose income counts for a USDA loan?

Every adult member of the household, even those not on the loan. This is stricter than other loans, but the allowed deductions can bring a household back under the limit.

Are USDA income limits the same everywhere?

No. The figures here are the standard baseline for most counties; high-cost areas have higher limits. Use the USDA eligibility tool to find the exact limit for a specific address.

All reference data