Area Median Income and Your Household Income
Awards in the Housing Recovery Program will be based on the income level of the household and income is calculated at the time of application. AMI is Area Median Income and is a calculation completed for all counties and household sizes across Colorado. The Area Median Income (AMI) varies by County and is dependent on household size. Find the Area Median Income limits that apply to you.
Steps to find your income level and eligibility for HRP funds:
- Download the 2023 AMI tables.
- Find the table for county. Please note that only those counties eligible for HRP funds are shown.
- Find the row representing your household size (including children and any non-family members living there permanently).
- Based on your annual income, read across the Household size row until you get to the column with the first dollar amount that equals or exceeds the combined annual income of all household members.
- The first column that equals or exceeds your household income is your AMI level (80%, 100%, 120%, and 150%). This level of AMI identifies the grant/forgivable loan you may be eligible for.
- Households with an annual income that is greater than the county’s 150% AMI are not eligible for a grant/forgivable loan but are eligible for traditional loans.
Verification of Household Income and Size
Household income verification is based on the following:
- Most recent Federal Tax Return, W2’s, 1099’s and K1’s (Provide 2 years if self employed)
- Income Verification (e.g. 30 days of pay stubs, current SSI/disability/Pension award letter, 2022 P&L if self-employed, etc.)
- Adjusted gross incomes will be recorded for all household members over 18 years old and not full-time students and combined to calculate total household income.
- Source documentation will be obtained and third party verification will be used as needed to verify income.
If a Form 1040 from the prior year is unavailable then supporting documentation will be required, as applicable:
- Wages: 2 or 3 consecutive pay stubs.
- Retirement/Social Security benefits.
- Rental income.
- Unemployment benefits.
- Court ordered alimony/spousal maintenance.
- Taxable interest and dividends documentation for other less common types of income.
For your household income level, please use adjusted gross income from IRS form 1040. The 1040 form is used to identify the sources of an applicant’s income. Projected income will primarily be determined by the additional documentation. The definition of 1040 income can be found in the IRS definition. This will give you a ballpark estimate of your income but we will analyze your 1040 and additional income documents to calculate your actual income earned. Once you have your household income level, it will be compared with the area median income for your county.
The State will use HUD’s HOME Program guidelines in determining household size at 24 CFR 92. HUD guidelines state that, as a general rule, you must include “all persons living in the unit” when determining your household size.