2026 USDA Income Limits at a Glance
1-4 PERSON HOUSEHOLD
$112,450
Up from $103,500 in 2025
5-8 PERSON HOUSEHOLD
$148,450
Up from $136,600 in 2025
High-cost areas: Up to $153,400 (1-4) and $202,500 (5-8) in certain counties. Check your county's exact limit →
USDA Income Limits by State (2026 — Top 20 States)
| State | 1-4 Person | 5-8 Person | % Eligible Area | Avg Home Price | USDA Rating |
|---|---|---|---|---|---|
| Texas | $112,450 | $148,450 | 92% | $295K | ⭐⭐⭐⭐⭐ |
| Ohio | $112,450 | $148,450 | 89% | $210K | ⭐⭐⭐⭐⭐ |
| Indiana | $112,450 | $148,450 | 91% | $225K | ⭐⭐⭐⭐⭐ |
| Tennessee | $112,450 | $148,450 | 88% | $285K | ⭐⭐⭐⭐⭐ |
| North Carolina | $112,450 | $148,450 | 85% | $310K | ⭐⭐⭐⭐ |
| Georgia | $112,450 | $148,450 | 87% | $295K | ⭐⭐⭐⭐⭐ |
| Missouri | $112,450 | $148,450 | 90% | $215K | ⭐⭐⭐⭐⭐ |
| Alabama | $112,450 | $148,450 | 93% | $195K | ⭐⭐⭐⭐⭐ |
| Michigan | $112,450 | $148,450 | 88% | $230K | ⭐⭐⭐⭐ |
| Florida | $112,450 | $148,450 | 75% | $380K | ⭐⭐⭐ |
| Pennsylvania | $112,450 | $148,450 | 82% | $260K | ⭐⭐⭐⭐ |
| Virginia | $122,850 | $162,150 | 78% | $350K | ⭐⭐⭐ |
| Colorado | $128,700 | $169,850 | 80% | $510K | ⭐⭐ |
| Washington | $130,200 | $171,850 | 82% | $540K | ⭐⭐ |
| California | $138,950 | $183,450 | 70% | $760K | ⭐ |
| Hawaii | $153,400 | $202,500 | 85% | $820K | ⭐ |
⭐⭐⭐⭐⭐ = Best USDA states (high eligible area + affordable homes). ⭐ = Technically eligible but high home prices make USDA less practical. Check your county eligibility in 60 seconds →
USDA vs FHA vs Conventional: Cost Comparison ($250K Loan)
| Feature | USDA | FHA | Conventional |
|---|---|---|---|
| Down Payment | $0 (0%) | $8,750 (3.5%) | $7,500-$12,500 (3-5%) |
| Upfront Fee | $2,500 (1.0%) | $4,375 (1.75%) | $0 |
| Annual Insurance | 0.35% ($72/mo) | 0.55% ($114/mo) | 0.22-1.5% ($46-$312/mo) |
| Total Monthly (P&I+ins) | $1,590 | $1,669 | $1,564-$1,830 |
| Cash Needed at Closing | $3,000-$5,000 | $12,000-$15,000 | $10,000-$18,000 |
| Min Credit Score | 640 (practical) | 580 | 620 |
| Income Limits | Yes ($112,450) | No | No |
| Location Restriction | Rural/suburban | Anywhere | Anywhere |
| Insurance Duration | Life of loan | Life of loan (<10% dn) | Cancels at 78-80% LTV |
| 30-Year Total Cost | $575,400 | $604,340 | $568,040-$665,200 |
Bottom line: USDA saves $29K over FHA and requires $0 down. If your area qualifies, USDA is the cheapest mortgage program available. Compare USDA lenders in your area →
$0 Down + Lower Fees Than FHA = USDA
Check if your address qualifies AND if your income is under the limit. 2 minutes, free, no SSN.
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USDA Income Deductions: How to Qualify Even if You're Over the Limit
Childcare Expenses
Deduct actual childcare costs for children under 12. If you pay $1,200/mo in daycare, that's $14,400/year off your USDA income.
Example: Household $125K - $14,400 childcare = $110,600 (UNDER $112,450!)
Dependent Deduction ($480 each)
Deduct $480 per dependent child under 18 (or full-time student under 24). 4 kids = $1,920 deduction.
Example: 3 kids: $114K - $1,440 = $112,560 → still slightly over
Elderly/Disabled Household
If any household member is 62+ or disabled, deduct medical expenses exceeding 3% of gross income.
Example: $115K income, $6K medical, elderly: deduct $6K - ($115K × 3%) = $2,550
Disability Assistance
Deduct care attendant or auxiliary equipment expenses for disabled household members.
Example: Wheelchair-accessible van payments, home modifications, etc.
Frequently Asked Questions
What is the USDA loan income limit for 2026?
The 2026 USDA loan income limits are: 1-4 person household: $112,450 (baseline). 5-8 person household: $148,450 (baseline). These are 115% of the area median income (AMI). In high-cost counties, limits are higher — up to $153,400 (1-4 person) and $202,500 (5-8 person) in some areas. The limits increased 4.8% from 2025 ($103,500 to $112,450). Important: USDA counts ALL household income, not just the borrower's — including non-borrowing spouse, adult children living at home, and other earners. <a href="https://mortgage-info.com/go/mrc?src=usda-loan-income-limits-2026-by-county-guide&p=faq-cta">Check USDA eligibility by county →</a>
Check your eligibility →What areas qualify for USDA loans in 2026?
About 97% of U.S. land area qualifies for USDA loans. Eligible areas include: towns with population under 35,000, suburban areas outside major metro boundaries, and rural communities. Many areas people consider "suburban" actually qualify — including parts of metro-adjacent counties. Notable qualifying areas: parts of Sacramento suburbs (CA), most of rural Texas, much of Florida outside Miami/Tampa/Orlando cores, all of Vermont, Montana, Wyoming. Use the USDA eligibility map at eligibility.sc.egov.usda.gov to check your specific address. <a href="https://mortgage-info.com/go/mrc?src=usda-loan-income-limits-2026-by-county-guide&p=faq-cta">Check if your address qualifies for USDA →</a>
Does USDA count my spouse income even if they are not on the loan?
Yes — USDA counts ALL household income for eligibility, including: non-borrowing spouse income, adult children (18+) living in the home, any other household members with income. However, certain deductions apply: childcare expenses for children under 12, disability-related expenses, medical expenses over 3% of income for elderly households, and $480 per dependent child. These deductions can lower your "adjusted" income below the limit even if gross household income exceeds it. Example: household gross $120K - $8K childcare - $2,400 (5 dependents × $480) = $109,600 adjusted — UNDER the $112,450 limit.
Compare USDA lenders →Can I get a USDA loan with $0 down payment?
Yes — USDA is one of only two $0 down payment loan programs (along with VA). USDA requires: $0 down payment, 640+ credit score (most lenders, though 580 is the USDA minimum), debt-to-income under 41% (up to 44% with compensating factors), income at or below county limit, and property in eligible rural/suburban area. The only "catch" is the guarantee fee: 1.0% upfront (financeable) + 0.35% annual. On a $250K loan, that's $2,500 upfront + $72/month — still FAR cheaper than FHA MIP (1.75% upfront + 0.55% annual).
USDA vs FHA: which is better in 2026?
USDA wins on cost, FHA wins on flexibility. USDA advantages: $0 down (vs 3.5% FHA), lower annual fee 0.35% (vs 0.55% FHA), lower upfront fee 1.0% (vs 1.75% FHA). FHA advantages: available everywhere (vs rural/suburban only), lower credit minimum 580 (vs 640 practical), no income limits. Monthly payment comparison on $250K: USDA = $1,590 (P&I $1,518 + guarantee $72). FHA = $1,669 (P&I $1,518 + MIP $114 + upfront amortized $37). USDA saves $79/month = $28,440 over 30 years. If your area qualifies, USDA is almost always the better deal. <a href="https://mortgage-info.com/go/mrc?src=usda-loan-income-limits-2026-by-county-guide&p=faq-cta">Compare USDA vs FHA lenders →</a>
Compare USDA lenders →People Also Ask
“what is the maximum income for usda loan 2026?”
$112,450 for 1-4 person households, $148,450 for 5-8 person. Higher in high-cost areas. These are total HOUSEHOLD income, not just borrower. Check USDA eligibility free →
“can i get a usda loan making 100k a year?”
Yes! The 2026 limit is $112,450 for most areas. $100K is well under the limit. Even with a spouse earning $10K, you'd be at $110K — still eligible.
“does usda really have zero down payment?”
Yes — $0 down, 100% financing. You only pay a 1.0% upfront guarantee fee (can be financed into the loan) and 0.35% annual fee. Cheapest government loan program.
“how do i know if my area qualifies for usda?”
Check eligibility.sc.egov.usda.gov — enter your address. About 97% of U.S. land area qualifies. Many suburban areas outside metro cores are eligible.
$0 Down. Lower Fees. No PMI Equivalent.
USDA is the cheapest mortgage program in America — and most people don't even know they qualify.
97% of U.S. land area is eligible. Income limit: $112,450. Check in 60 seconds.
USDA Eligibility Zero Down
Complete eligibility guide
FHA Loan Requirements 2026
3.5% down, 580 credit
VA Loan Guide 2026
$0 down for veterans
Emily Chen
Construction & Government Loans Expert • NMLS #345678 • 8+ Years
Emily specializes in USDA and government-backed loans. She has helped 400+ families in rural and suburban areas qualify for $0 down USDA mortgages, saving them an average of $12,000 in upfront costs vs FHA.