Section 202 Housing Eligibility and Application Process for Low-Income Seniors United States 2025

What Is Section 202 Housing?

Section 202 Housing represents a crucial federal program that provides affordable rental housing specifically for very low-income elderly persons. Established under the Housing Act of 1959, this program is funded by the U.S. Department of Housing and Urban Development and creates housing opportunities for individuals aged 62 and older. The program operates through nonprofit organizations that develop and manage housing facilities designed to meet the unique needs of senior residents.

The housing developments typically feature barrier-free design elements, community spaces, and access to supportive services that promote independent living. These facilities often include features such as wheelchair accessibility, emergency call systems, and on-site service coordinators who help residents connect with community resources and health services.

Who Is Eligible for Section 202 Housing?

Eligibility for Section 202 Housing requires meeting specific age and income criteria established by HUD. Applicants must be at least 62 years old at the time of application, regardless of disability status. The program serves households consisting of one or more persons where at least one person meets the age requirement.

Additionally, applicants must qualify as very low-income households, meaning their annual income cannot exceed 50 percent of the area median income for their geographic location. Some developments may also serve extremely low-income households, defined as those earning 30 percent or less of the area median income. Background checks and rental history reviews are typically conducted as part of the screening process.

Understanding the Income Limits

Income limits for Section 202 Housing vary significantly based on geographic location and are updated annually by HUD. These limits reflect local economic conditions and housing costs, with higher limits typically applied in areas with elevated living expenses. For 2025, income limits range from approximately $31,000 for a single person in lower-cost areas to over $60,000 in high-cost metropolitan regions.

The income calculation includes wages, Social Security benefits, pensions, investment income, and other sources of regular income. Certain deductions may be applied, including medical expenses exceeding three percent of annual income for elderly households, disability assistance expenses, and dependent care costs. Assets are also considered, with imputed income calculated on assets exceeding $5,000.

Overview of the Application Process

The application process for Section 202 Housing begins with contacting individual housing developments directly, as there is no centralized application system. Prospective residents must identify available developments in their desired areas and submit separate applications to each property. Most developments maintain waiting lists due to high demand and limited availability.

Applications typically require documentation including proof of age, income verification, Social Security cards, identification documents, and medical records if applicable. The application review process includes income verification, background checks, and assessment of housing needs. Processing times vary significantly, with waiting periods often extending from several months to several years depending on local demand and unit availability.

Rent estimates and waiting times mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making housing decisions.

How Rent Is Determined

Rent calculation in Section 202 Housing follows HUD guidelines that limit tenant payments to 30 percent of adjusted monthly income. This means residents pay the higher of either 30 percent of their adjusted monthly income, 10 percent of their gross monthly income, or the welfare rent portion in welfare-receiving households. The remaining housing costs are covered through federal rental assistance.

Adjusted income calculations subtract allowable deductions from gross annual income, including $400 for each dependent, $400 for elderly or disabled households, medical expenses exceeding three percent of annual income, and disability assistance expenses. Utility allowances may also be provided for tenant-paid utilities, further reducing the effective housing cost burden on residents.

Rent determinations are reviewed annually through a recertification process where residents must provide updated income and asset information. Changes in income, whether increases or decreases, will result in corresponding rent adjustments to maintain the 30 percent income-to-rent ratio established by program guidelines.

Section 202 Housing continues to serve as a vital resource for low-income seniors seeking affordable, age-appropriate housing with supportive services. The program’s emphasis on accessibility, community engagement, and income-based rent calculations helps ensure that eligible seniors can access safe, dignified housing options regardless of their financial circumstances. While waiting lists and application processes can be lengthy, the long-term benefits of stable, affordable housing make Section 202 developments valuable resources for qualifying senior households across the United States.