What is Area Median Income?

Area Median Income is a newer alternative to the Federal Poverty Level, and it’s gaining steam because it offers some clear advantages over this older poverty measurement. If you’ve applied for any sort of assistance program lately, you may have noticed that more and more programs are switching to AMI to determine your eligibility.

In this article, we’re going to clearly break down what Area Median Income is, how it affects you, and how you can find out what the AMI amount is for your local area. Let’s go!

What is Area Median Income?

Area Median Income (AMI) is the midpoint income for people in a small geographic area, such as a city or a county. It is exactly what it sounds like! “Area” refers to a specific geographical area, such as city. “Median” refers to the method of calculation. “Income” is the focus of the measurement.

This is different than an average. A median income is calculated by lining up all of the household incomes from smallest to largest and then identifying the middle number. An average can be skewed by very high or very low values, which is why a median is preferred for this calculation.

Each year, the U.S. Department of Housing and Urban Development (HUD) calculates the AMI for every metropolitan area and county in the country. This makes the AMI much more responsive to local economic conditions than national poverty metrics.

For example, the AMI for San Francisco is significantly higher than it is in Springfield, Missouri, because the cost of living is much greater there. This local sensitivity makes AMI a more accurate reflection of what “low income” actually looks like in different communities.

AMI vs. FPL

Although Area Median Income (AMI) was first introduced in the Housing Act of 1937, most people didn’t hear about it until recently. That’s because most social programs rely on a different measurement called the Federal Poverty Level (FPL) instead.

The Federal Poverty Level is the same across the contiguous 48 states, with separate values only for Alaska and Hawaii. As of 2025, the FPL for a family of four is $32,150. However, this doesn’t account for wide regional differences in housing, utilities, and other costs.

AMI, by contrast, is calculated based on the actual incomes and cost of living in different areas. For example, the AMI in Springfield, Missouri, is $71,000 for a family of four—more than twice the FPL. Programs that use 60% of the AMI as an income cap would allow a family to earn up to $42,600, making more people eligible than if the FPL were used.

This is why AMI is becoming the preferred income metric for many programs, especially those related to housing and healthcare.

How does it affect you?

When programs use the Area Median Income instead of the federal poverty guidelines, more people are usually eligible for that program. This means that you are more likely to be able to get the help that you need.

AMI is used to determine eligibility for a wide variety of programs, including but not limited to:

• Section 8 Housing Choice Vouchers
• Public housing
• Low Income Housing Tax Credit (LIHTC) properties
• Child care subsidies
• Medicaid expansions in some states
• Hardship grants
• Utility assistance
• Certain tax credit programs

HUD typically breaks AMI into categories based on percentages:

• 30% of AMI or less: Extremely low income
• 50% of AMI or less: Very low income
• 80% of AMI or less: Low income

Some programs also set eligibility thresholds at 100% or even 120% of AMI, depending on the purpose of the assistance.

This approach allows more flexibility and fairness, especially in high-cost areas. It’s also why some people who don’t qualify under the Federal Poverty Level may still qualify when a program uses AMI instead.

What is the AMI for my area?

You can’t calculate AMI on your own, because it requires access to detailed local income data. However, there are several ways to look it up:

• Visit lilinks.com/ami for a quick lookup tool.
• Use the Fannie Mae AMI Lookup Tool by entering your address to see the local AMI and key percentages (100%, 80%, and 50%).
• Check HUD’s annual income limits, which are published on their website each year.

If a program uses a different percentage like 60%, you can calculate it by multiplying the 100% AMI value by the appropriate decimal (e.g., 0.6 for 60%).

For example, if the AMI is $151,100, then 60% would be $90,660.

Why It Matters

Understanding your local AMI is essential if you’re applying for benefits. It can help you:

• Know which programs you may qualify for
• Avoid unnecessary denials based on outdated income assumptions
• Advocate for yourself when you’re told you “make too much”
• Plan ahead as your financial situation changes

It’s also worth checking your AMI every year. Since these numbers are updated annually, a change in your area’s median income—or your own household income—could affect your eligibility.

Relief Recap

The Area Median Income is one way to measure the typical income and cost of living in a given geographical area. Many programs use a percentage of AMI to calculate the income limits for their low income assistance programs. As more programs shift to AMI-based eligibility, understanding where you fall on the AMI scale can help you access the benefits you need.