How is a Low- to Moderate-Income individual or family defined?

Nonprofits participating in one of FHA’s nonprofit programs must serve Low- to Moderate-Income individuals or families. Low- to Moderate-Income individuals or families refer to individuals or families whose household income does not exceed 115 percent of the median income for the area when adjusted for family size. The jurisdictional Homeownership Center (HOC) may approve a higher percentage of up to 140 percent.
Area median income data can be found at
For additional information see Handbook 4000.1 I.B.4. at
The  FHA-approved Nonprofits web page is available at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04238