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.
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.
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.
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.