Omar Bennett
California's income limits for various government assistance programs are determined by factors such as household income, composition, and size. Generally, low-income families in California are defined as those earning below $47,520 annually, with specific thresholds varying across regions. For instance, in Los Angeles County, low-income families are defined as those earning up to 80% of the median family income, which was $106,600 in 2025. These income limits are crucial for determining eligibility for affordable housing and healthcare programs, with the state aiming to ensure that safe and stable housing is accessible to all its residents.
| Characteristics | Values |
|---|---|
| Affordable housing cost | Not more than 30% of gross household income |
| Federal limit | 30% of gross income |
| Free health insurance plans | Available for families earning below $47,520 per year |
| Government assistance | Available for families of four earning below $97,200 per year |
| Cost Sharing Reduction (CSR) | Available on Silver Plans based on average salary |
| Government discounts | Available based on income and household size through the Affordable Care Act |
| Low-income families | Families whose incomes do not exceed 80% of the median family income |
| Very low-income families | Families whose incomes do not exceed 50% of the median family income |
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What You'll Learn
Affordable housing cost
Affordable housing is a pressing issue in California, where millions of renters are at risk of eviction and housing insecurity. The U.S. Department of Housing and Urban Development (HUD) defines affordable housing as housing that costs a household 30% or less of its income. This definition is also recognised in California state law, which includes rent or mortgage payments, utilities, and property taxes in the calculation of "housing cost".
The California Department of Housing and Community Development (HCD) sets income limits for affordable housing eligibility annually, categorising households as low-income (50-80% of Area Median Income), very low-income (30-50% of AMI), and extremely low-income (below 30% of AMI). These limits are updated each year, with the HCD releasing its figures in mid-to-late summer.
Affordable housing developments can consist of single-family homes, duplexes, or multi-family buildings, with the latter being the most common due to cost-effectiveness. They can also be rental or owner-occupied, although most affordable housing stock is rental.
Creating affordable housing for low-income households requires significant financial resources and technical expertise, similar to market-rate housing. However, affordable housing developers face the challenge of not being able to recoup their projected costs through tenant rent. As a result, they rely on financing mechanisms from federal, state, and local governments, as well as programs like the Low-Income Housing Tax Credit (LIHTC) to bridge the gap between development costs and rental income.
The demand for affordable housing in California far exceeds the current supply, and the pandemic has further exacerbated the housing challenges faced by low-income families. Counties have implemented temporary measures, such as Project Roomkey in El Dorado County, to address homelessness. However, there is a continued need to create and preserve affordable homes to ensure stable housing for all Californians.
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Household income
According to the City of Inglewood, California, low income is generally considered to be 50% or less of the area median income (AMI), while moderate income is considered 80% of AMI. The Los Angeles County median family income for 2025 was determined to be $106,600 by the U.S. Department of Housing and Urban Development (HUD). Therefore, a low-income family in Los Angeles County would have an income of $53,300 or less per year, which is 50% of the median family income.
The California Department of Housing and Community Development (HCD) works to increase the supply of affordable rental housing. They define "affordable housing cost" for lower-income households as not exceeding 30% of gross household income, including rent or mortgage payments, utilities, and property taxes. This definition is in line with the federal limit, which is also generally set at 30% of gross income.
In terms of healthcare, California offers various plans under Covered California, the state's health insurance marketplace. Income limits for eligibility are based on the Federal Poverty Level (FPL) issued by the Department of Health and Human Services (HHS). If an individual or family earns less than 400% of the FPL, they may qualify for government assistance. For example, Medi-Cal, California's Medicaid program, provides health coverage to eligible low-income households, with children qualifying up to 266% of the FPL.
Additionally, California offers free health insurance plans to individuals and families with a net income below $47,520 per year. Families of four earning below the median household income of $97,200 per year may also qualify for government assistance. Tax deductions and seasonal income fluctuations can impact an individual's or family's income level for these purposes.
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Cost of living
The cost of living in California is high compared to other states, and this is reflected in the state's income limits for various assistance programs. The Department of Housing and Urban Development (HUD) defines "Extremely Low Income" as income that does not exceed the federal poverty level or 30% of the area median income. For Los Angeles, only families meeting Extremely Low and Very Low-Income standards are eligible for Section 8 housing assistance.
The "affordable housing cost" for lower-income households in California is defined as not more than 30% of gross household income, according to state law. This percentage is used as a benchmark for federal and state housing assistance programs, which set maximum rents and housing costs for eligible residents based on their incomes.
In terms of healthcare, California offers free health insurance plans to low-income individuals and families. Covered California, the state's health insurance marketplace, provides plans based on income and household size. California's low-income cut-off is an annual income of $47,520, and families of four with a net income below the median household income of $97,200 per year qualify for government assistance. Medi-Cal, California's Medicaid program, provides health coverage to eligible low-income households, with children qualifying for Medi-Cal up to 266% of the Federal Poverty Level (FPL).
The FPL is issued annually by the Department of Health and Human Services (HHS) and varies based on household size and inflation rates. It is used to determine eligibility for various government support programs and subsidies. For example, individuals or families who make less than 400% of the FPL qualify for government assistance based on their income.
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Health insurance
The Affordable Care Act (ACA) has made health insurance more accessible to families and individuals across the United States, including those in California. In 2018, 93% of Californians had health insurance coverage, indicating greater health outcomes for the state’s residents overall. However, this number still left 7% of Californians uninsured. California’s remaining uninsured lack coverage for many reasons. Some are ineligible for coverage due to their immigration status. Others come from low-income households where insurance may not be a top priority. Some individuals may actually qualify for financial assistance but remain uninsured because they either have trouble with the enrollment process or don’t know they qualify for aid.
California offers several health insurance options for people with low incomes. These options are often more affordable than remaining uninsured long-term. While paying for health insurance can be expensive, it generally saves people money in the long term. By providing a safety net, health insurance helps everyone, especially low-income individuals, stay healthy without spending a fortune in the process.
The three biggest pathways to coverage are Medi-Cal, premium assistance, and cost-sharing reductions. Each program has slightly different features and eligibility requirements. But all three options make coverage more accessible to low-income Californians.
Medi-Cal is California’s Medicaid program, providing health coverage to eligible low-income households. It provides comprehensive health coverage for children and families, often for free or at a low cost. Most people who make 128% of the Federal Poverty Level (FPL) will qualify for Medi-Cal. Some individuals who make more may still qualify, for instance, if they’re pregnant. While those who make over 128% of the FPL may not qualify for Medi-Cal, they may qualify for premium tax credits to help subsidize the cost of an individual or family health insurance plan.
Premium assistance is a tax credit available to consumers to help reduce the cost of monthly healthcare premiums. To qualify for premium assistance, your household income must fall between 138% and 400% of the FPL. You must also be either a U.S. citizen, U.S. national, or a lawfully present immigrant to receive premium assistance. You can only receive premium assistance if you do not have access to healthcare through an employer or other public health insurance programs like Medi-Cal.
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Government assistance
California offers various forms of government assistance to its low-income families. The state's official website provides a comprehensive list of social programs and services that improve the well-being of individuals, families, and communities.
One of the critical aspects of government assistance is healthcare. California offers Medi-Cal, which provides free or low-cost health coverage for those who meet the eligibility requirements, regardless of immigration status. This program is part of Medicaid, a federal initiative that provides health coverage for low-income individuals across the country. Additionally, Covered California offers health insurance plans with government assistance based on income levels. Families with lower household net incomes are eligible for more government assistance.
Another area of support is food assistance. CalFresh, known federally as the Supplemental Nutrition Assistance Program (SNAP), provides monthly food benefits to low-income individuals and families. This program helps supplement the food budget of needy families, enabling them to purchase healthy food and work towards self-sufficiency.
The state also provides assistance with housing and utilities. The California Department of Housing and Community Development (HCD) works to increase the supply of affordable rental housing. Additionally, programs like California Mortgage Relief help homeowners catch up on past-due housing payments and property taxes.
California also offers support for families with children. CalWORKs is a welfare program that provides cash aid and services to eligible families with children. It operates in all 58 counties and is managed by county welfare departments. The state also has programs like "Hack the Hood," which teaches low-income youth technical skills and life skills.
Furthermore, California has programs to assist seniors and their families. The Senior Gateway is a website that connects seniors and their caregivers to helpful services and resources. The California Department of Aging also works with local Area Agencies on Aging (AAA) to provide various services for older adults, adults with disabilities, and their caregivers.
Lastly, the state offers assistance with transportation costs through the Low-Cost Automobile (CLCA) Insurance Program. This program provides eligible good drivers with affordable liability insurance, helping them meet the state's mandatory auto insurance requirement.
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Frequently asked questions
Generally, low-income families in California are defined as those earning 80% or less of the median family income. This figure varies across different areas of California.
The cost of living in an area affects what is considered low income. For example, in Inglewood, CA, low income is considered to be 50% or less of the area median income.
The median household income in California is $97,200 per year.
Income limits are subject to three variables: income sources, household composition effects, and seasonal income fluctuations. Based on your income and household size, you may qualify for government discounts on healthcare through the Affordable Care Act.
Affordable housing cost for lower-income households in California is defined as not more than 30% of gross household income.
