THDA Income Limits 2026: Every TN County Tier + the Heroes Discount
THDA caps household income at ~$94K-$131K depending on county — Nashville metro tops the table, rural Tennessee the floor. Household income counts, acquisition price caps apply, and Heroes get -0.50% off the rate. Here's the full tier map.
Check Your THDA Eligibility — Free
County limit + Great Choice Plus DPA + Heroes discount. 2 minutes.
$94-131K
Income Cap Range
by county
-0.50%
Heroes Discount
military/responders
$6-15K
DPA
Great Choice Plus
640
Min Credit
all Great Choice
THDA Income Limits — County Tiers
| Tier | Counties | Note |
|---|---|---|
| Metro tier (~$120-131K) | Davidson (Nashville), Williamson, Rutherford, Wilson, Sumner | Highest caps — Nashville metro growth counties |
| Mid-high (~$110-120K) | Shelby (Memphis), Knox (Knoxville), Hamilton (Chattanooga), Montgomery | Urban cores outside Nashville |
| Standard (~$100-110K) | Most mid-size counties: Blount, Madison, Maury, Bradley, Washington | The default THDA band |
| Base (~$94-100K) | Rural Tennessee — the majority of the state's 95 counties | Lowest caps, but purchase-price limits match local markets |
Approximate — verify the exact posted figure for your county at thda.org; limits revise annually.
Which Cap Applies to Which Program
| Program | Income Cap | Price Cap | Key Rules |
|---|---|---|---|
| Great Choice (first mortgage) | County tier limits above | County acquisition caps ~$375-475K | 640+ credit, first-time rule (3-yr) |
| Great Choice Plus (DPA) | Same county limit | Same cap | $6K forgivable or $15K amortizing option |
| Homeownership for Heroes | Same county limit | Same cap | -0.50% rate discount for military/vets/law enforcement/first responders |
| New Start (targeted areas) | Targeted-tract rules | Varies | Serves very-low-income buyers in designated areas — separate limits |
3 Ways THDA Applications Die at the Limit
1. Household income, not borrower income
Everyone 18+ in the home counts. Applicant at $85K + spouse at $45K = $130K household — over most county caps. Compute the household number first.
2. The price cap kills it silently
You can be income-eligible and still lose — a $490K home in a $475K-capped county is out regardless of income. Check BOTH numbers for your county.
3. Overtime and bonus income count
THDA projects qualifying income from pay patterns — a big bonus year can push projected household income over the cap even if base pay fits.
Frequently Asked Questions
Q1. What is the THDA income limit in my county?
THDA household income caps run ~$94K-$131K by county: Nashville-metro counties (Davidson, Williamson, Rutherford) sit at the top ~$120-131K; Memphis, Knoxville, and Chattanooga metros run ~$110-120K; most of Tennessee's 95 counties land ~$94-110K. THDA counts household income — all adults 18+ who'll occupy the home. Verify the exact posted figure at thda.org — limits revise annually.Check my county limit — free →
Q2. Does THDA have purchase price limits too?
Yes — county acquisition price caps (~$375K-$475K in most areas, higher in Nashville metro) apply alongside income limits. Exceeding EITHER disqualifies the purchase for THDA programs. The good news: price caps track local markets, so median-price homes in your county usually fit.
Q3. How does the THDA Heroes discount work?
Homeownership for Heroes cuts 0.50% off the posted Great Choice rate for military members, veterans, law enforcement, EMTs, paramedics, and firefighters. On a $250K loan that's roughly $80/mo — and veterans waive the first-time-buyer rule entirely. Stack it with Great Choice Plus DPA.Veterans: check VA options too →
Q4. Does THDA count my spouse's income if they're not on the loan?
Yes — household income counts all occupants 18+, same trap as most state agencies. A two-income household at $135K fails the Nashville-metro cap even if the applicant alone earns $95K. Run the household number, not the borrower number, before you apply.
Q5. Do I need to be a first-time buyer for THDA?
Great Choice requires it (no ownership in past 3 years) — except in federally targeted areas and for veterans, who waive it. Repeat buyers have one other route: THDA occasionally runs non-first-time pilot programs, but don't count on it — the veteran and targeted-area exceptions are the reliable waivers.
Q6. What credit score do I need for THDA Great Choice?
640 minimum across Great Choice products (FHA, VA, USDA, conventional pairs). If you're 580-639, work with a THDA-approved counselor first — most borrowers close the gap in 3-6 months.Boost my credit score →
Related Tennessee & DPA Guides
County Cap + Household Math + Price Cap — All Three Decide It
Most rejections check one number and miss the other two. Run the full eligibility check free.