Qualifying for Low-Income Housing in New Jersey: Guidelines and Requirements

Qualifying for low income housing in New Jersey is determined by federal and state income limits that are established by the U.S. Department of Housing and Urban Development (HUD) and the Department of Housing and Community Development (HCD). These limits are based on the area median income (AMI) and are categorized into different income groups.

Eligibility for low income housing in New Jersey is generally based on the following income categories relative to AMI:

• Extremely low income: 15-30% of AMI
• Very low income: 30% to 50% of AMI
• Lower income: 50% to 80% of AMI

The specific income limits vary based on household size and are updated annually. For housing to be considered affordable for lower-income households, the cost should not exceed 30 percent of the gross household income, including rent or mortgage payments, utilities, and property taxes and insurance for owner-occupied housing.

In addition to income, eligibility for housing assistance programs like the Section 8 Housing Choice Voucher Program also requires applicants to be U.S. citizens, non-citizens with legal immigration status, or “mixed families” with at least one member having eligible immigration status.

It’s important to note that while these guidelines provide a general framework, specific income limits and eligibility requirements may vary based on the specific housing assistance program and local area AMI. Therefore, individuals or families interested in low income housing in New Jersey should check with the local housing authority or the New Jersey Department of Community Affairs for the most current and specific information.

What Is the Income Limit for Low-Income Housing in New Jersey?

The income limit for low-income housing in New Jersey, as with other U.S. states, is typically determined by the U.S. Department of Housing and Urban Development (HUD). This limit is based on local area median income (AMI) and is periodically revised. Specific categories of income are used to determine eligibility for housing assistance programs, including the Section 8 Housing Choice Voucher Program.

The most recent income limits for low income housing in New Jersey are listed below.

FY 2023 State Income Limits in New Jersey

Median Family Income
$123,500

Very Low-Income Limit (VLIL)  50% of Median*
1 Person	2 Person	3 Person	4 Person	5 Person	6 Person	7 Person	8 Person
$43,250	$49,400	$55,600	$61,750	$66,700	$71,650	$76,600	$81,550

Extremely Low-Income Limit (ELIL)  30% of Median*
1 Person	2 Person	3 Person	4 Person	5 Person	6 Person	7 Person	8 Person
$25,950	$29,650	$33,350	$37,050	$40,050	$43,000	$45,950	$48,950

Low-Income Limit (LIL)  80% of Median*
1 Person	2 Person	3 Person	4 Person	5 Person	6 Person	7 Person	8 Person
$66,250	$75,750	$85,200	$94,650	$102,250	$109,800	$117,400	$124,950

*Note: Income Limits may not equal exactly 50%, 30%, or 80% of the statewide Median Family Income due to the application of ceilings and floors.

How Does the Department of Housing and Urban Development (HUD) Determine These Limits?

The Department of Housing and Urban Development (HUD) determines housing and income limit eligibility for various assisted housing programs through a specific process based on Fair Market Rents (FMR) and Median Family Income (MFI) estimates. These programs include the Public Housing, Section 8 project-based, Section 8 Housing Choice Voucher, Section 202 housing for the elderly, and Section 811 housing for persons with disabilities.

HUD’s Office of Policy Development and Research (PD&R) is responsible for the calculation of these limits. The process begins with the collection of FMR and MFI data.

FMRs form the basis for defining the cost of rental housing in a specific area. They represent estimates of rent, utilities, and utility insurances for apartment units in each metropolitan area, parts of some metropolitan areas, or non-metropolitan county. HUD sets these rents annually, considering factors such as rental rates for existing units, new constructions, and the location’s desirability.

MFI estimates are used to set income limits. These limits determine who is eligible for assisted housing programs. HUD calculates these income limits for each area based on the median family income and the size of the family. These limits are set at different levels, typically at 30%, 50%, and 80% of the MFI for each area.

By integrating FMR and MFI data, HUD is able to determine eligibility limits for their various assisted housing programs. This ensures that assistance is targeted towards those families in most need, and that the aid provided is proportionate to the housing market conditions of the area in which they live.

What Are the Different Types of Low-Income Housing Available in New Jersey?

Low-income housing in New Jersey is offered through a variety of federal, state, and non-profit programs designed to assist those who struggle to afford standard housing costs. These programs are primarily aimed at families, the elderly, and persons with disabilities.

1. Public Housing: Administered by the New Jersey Department of Community Affairs (DCA), public housing provides affordable rental homes or apartments for low-income families, the elderly, and persons with disabilities. These housing units are owned by the state and rents are determined based on the family’s income.
2. Section 8 Housing Choice Voucher: This program, also administered by the DCA, provides rental assistance to low-income families and individuals. The assistance is not tied to a specific unit, but rather allows the recipient to choose any housing that meets program requirements, including privately owned homes and apartments. The recipient pays a portion of the rent, with the remainder paid directly to the landlord by the DCA.
3. Low-Income Housing Tax Credit Properties: This federal program encourages the development of affordable rental housing by providing tax credits to developers. In New Jersey, these properties are administered by the New Jersey Housing and Mortgage Finance Agency. These tax credit properties are privately owned, but must set aside a certain number of units to be rented to low-income residents at below-market rates.
4. Non-Profit Housing: Numerous non-profit organizations in New Jersey provide affordable housing options for low-income individuals and families. These organizations often work in partnership with federal and state agencies, and may offer a range of options from transitional housing for homeless individuals to long-term affordable rental or homeownership opportunities.
5. Subsidized Housing: Subsidized housing programs offer financial assistance to low-income individuals and families to help them afford the cost of housing. These subsidies can be used in both public housing developments and private rental units. The Section 8 project-based program, Section 202 housing for the elderly, and Section 811 housing for persons with disabilities are examples of subsidized housing programs available in New Jersey.

How to Apply for Low-Income Housing in New Jersey?

Applying for low-income housing in New Jersey involves several steps and varies depending on whether you’re applying for public housing or the Section 8 Housing Choice Voucher Program.

1. Identify the Type of Assistance You Need: The U.S. Department of Housing and Urban Development (HUD) provides funding for several rental assistance programs. These include public housing and the Section 8 Housing Choice Voucher Program. Public housing is rental housing for eligible low-income families, the elderly, and people with disabilities. The Section 8 program provides vouchers that pay a portion of the rent directly to the landlord.
2. Contact Your Local Public Housing Authority: To apply for either public housing or Section 8, you’ll need to contact your local public housing authority (PHA) in New Jersey. The PHA is responsible for administering these programs, and they can provide you with information on how to apply. Please note that many PHAs have long waiting lists for these programs, so you may want to apply at more than one PHA.
3. Complete the Application Process: The application process will vary depending on the PHA, but it generally involves filling out an application form and providing documentation to verify your income and eligibility. This may include pay stubs, tax returns, and other financial documents.
4. Find a Suitable Housing: If you’re applying for the Section 8 program, you’ll need to find a landlord who accepts Section 8 vouchers once you’ve been approved. Your PHA should be able to provide you with a list of eligible landlords.
5. Other Agencies for Rental Assistance: If you live in a rural community, you might also be eligible for rental assistance from the Department of Agriculture. They provide rental assistance programs, home improvement and repair loans and grants, and self-help housing loans to low income individuals and families.

For more personalized assistance, consider contacting a HUD-approved housing counseling agency in New Jersey. They can help you understand your options and guide you through the application process.

For elderly or disabled individuals seeking housing assistance, HUD offers additional resources and programs to accommodate special living requirements.

What Documents Do You Need to Apply?

Every PHA requires documents that can be used to verify personal identity, citizenship or immigration status, family composition, and financial status.

Personal identification documents include birth certificates and social security cards for all family members. Each applicant also needs to provide a driver’s license, state or alternate government-issued photo ID. Non-U.S. citizens are required to provide their passports and immigration papers, and a signed verification of immigrant status is also necessary.

Financial documents are required to provide information about income, assets, and public assistance benefits. These include a Social Security Verification Letter and Proof of Benefits, proof of income such as pay stubs, W2 forms, or tax returns, and bank statements. Documents showing public assistance benefits and information on any assets owned are also necessary.

Once the application is submitted, the Public Housing Agency (PHA) may ask for additional supporting documents. These may include copies of government-issued IDs for all household members, proof of citizenship such as passports or birth certificates, bank account statements, pay stubs, tax returns, and copies of the current rental agreement.

Frequently Asked Questions