AHFA income limits: one table, and one number
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
Two completely different ways of measuring the same household. Which one applies depends only on which programme you are asking about.
Step Up: one number for the whole state
Participants who earn $172,800 or less are eligible for the FHA/VA or HFA Advantage conventional Step Up programme — and AHFA attaches an unusually plain qualifier: regardless of household size or location.
No county lookup, no family-size column, and no sales price limit either. For a programme in this space that is remarkably simple, and the figure is high enough that a large share of Alabama households clear it without thinking about it. Why that single number matters so much.
First Step: a HUD table, by area and household size
These limits are set by the U.S. Department of Housing and Urban Development and apply to applications taken as of 6/24/2026. Which column you use depends on whether the property sits in a targeted area. How to check.
| Area | Area median income | Non-target 1–2 | Non-target 3+ | Target 1–2 | Target 3+ |
|---|---|---|---|---|---|
| Birmingham-Hoover HMFA Bibb, Blount, Shelby, Jefferson, St. Clair | $104,100 | $104,100 | $119,715 | $124,920 | $145,740 |
| Huntsville MSA Limestone, Madison | $115,100 | $115,100 | $132,365 | $138,120 | $161,140 |
| Auburn-Opelika HMFA Lee | $108,900 | $108,900 | $125,235 | $130,680 | $152,460 |
| Daphne-Fairhope-Foley MSA Baldwin | $102,400 | $102,400 | $117,760 | $122,880 | $143,360 |
| Tuscaloosa HMFA Tuscaloosa, Hale | $93,000 | $93,000 | $106,950 | $111,600 | $130,200 |
| Florence-Muscle Shoals MSA Colbert, Lauderdale | $95,900 | $95,900 | $110,285 | $115,080 | $134,260 |
| All Other Counties the remaining 55 | $89,500 | $89,500 | $102,925 | $107,400 | $125,300 |
★ Why this table can be trusted
Because every row obeys the same four relationships, and we checked each one rather than assuming the pattern held:
- Non-targeted, 1–2 people = the area median income exactly
- Non-targeted, 3+ people = 1.15 x AMI
- Targeted, 1–2 people = 1.20 x AMI
- Targeted, 3+ people = 1.40 x AMI
Seven areas times four relationships is 28 checks, and all 28 agree with what AHFA publishes. That is worth saying because it is not always true of a state housing agency's limit tables, and a figure a borrower is measured against should be verified rather than retyped.
It also means you can sanity-check your own county in one step: find the area median income, and your limit is that number, or 1.15, 1.20 or 1.40 times it.
Whose income gets counted?
Only the people on the loan. The First Step FAQ asks it directly — "Will all household income be used to determine income eligibility?" — and answers "No. Only the income of the borrower(s) will be used."
So an adult child who works, a parent who has moved in, or a roommate does not push the file over the limit, provided they are not on the note. What follows from that, including who can be on the deed.
Household size still picks your column on First Step — one-to-two against three-or-more. It just does not add anyone's income to the total.
Which counties are in which row?
Only twelve Alabama counties have their own area. The rest — 55 of 67 — sit in the "All Other Counties" row at $89,500, which is the lowest limit in the state and the one most Alabama buyers are actually measured against.
That is why the Step Up comparison matters so much outside the metros. In most of Alabama the gap between the two programmes is $89,500 against $172,800 — a difference of $83,300. The comparison in full.
Frequently asked questions
What is the income limit for AHFA Step Up?
$172,800. AHFA states that participants who earn $172,800 or less are eligible for the FHA/VA or HFA Advantage conventional Step Up program, regardless of household size or location. Step Up also has no published sales price limit.What are the First Step income limits in Alabama?
They are HUD limits effective 6/24/2026, varying by area and household size. In most Alabama counties the non-targeted limit is $89,500 for one to two people and $102,925 for three or more, rising to $107,400 and $125,300 in a targeted area. Huntsville is highest at $115,100 non-targeted for one to two people and $161,140 targeted for three or more.Does household income count toward AHFA income limits?
No. AHFA's First Step FAQ states that only the income of the borrowers will be used in the income eligibility determination. Household size still determines which column of the First Step table applies, but non-borrower income is not added.How are AHFA First Step income limits calculated?
From each area's median income. The non-targeted one to two person limit equals the area median income, the non-targeted three or more limit is 1.15 times it, the targeted one to two person limit is 1.20 times it, and the targeted three or more limit is 1.40 times it.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. AHFA program terms, income limits and sales price limits are set by the Alabama Housing Finance Authority and change; figures here carry the date we verified them against AHFA's published documents. AHFA down payment assistance is an amortizing second mortgage with a monthly payment, not a grant. Federal recapture tax may apply on First Step bond loans; consult a tax advisor. Loans are subject to borrower and property qualification.