In most places, “Affordable Housing” implies poverty. In Hawaii, “Affordable Housing” often includes the middle class.
We constantly meet renters and buyers who assume they earn too much to qualify. They make $80,000 or $100,000 a year and think, “I’m not low income. I don’t need a handout.”
Here is the reality: In Honolulu, a family of four earning $120,000 might technically be considered “Low Income” under certain state programs.
The magic number that governs your life is AMI (Area Median Income). If you don’t understand how to calculate it, you might be walking away from cheaper rent or a below-market condo.
At Hawaii Affordable Properties, Inc. (HAPI), we process thousands of applications. We see people disqualify themselves incorrectly every day. Here is the insider math you need to know to get approved in 2026.
Key Takeaways
- Gross, Not Net: Income is calculated before taxes. If your paycheck says $4,000 but your gross pay is $5,500, we use the $5,500.
- The “HHFDC Bonus”: HHFDC projects often use higher income limits than HCDA projects. Don’t assume you are disqualified just because you were rejected by one agency.
- Household Size Matters: A $90,000 salary might be “Market Rate” for a single person but “Low Income” for a family of three.
- Gig Work Counts: Your Uber, Turo, or freelance income counts differently than W-2 income.
What is AMI? (The Yardstick)
AMI stands for Area Median Income. It is the midpoint income for a specific region (Honolulu, Maui, Kauai, or Hawaii County).
Think of it like a ladder. The government assigns you a rung on the ladder based on your household size.
- 100% AMI: You earn exactly the average for your island.
- 50% AMI: You earn half the average (typically qualifies for Low-Income Housing Tax Credit rentals).
- 140% AMI: You earn significantly more, but typically still not enough to buy a market-rate home in Hawaii (typically qualifies for “Workforce Housing”).
The “Buckets” Explained:
- 30% – 60% AMI: This is the “Deep Subsidy” zone. Rent is significantly cheaper, but income limits are strict.
- 80% – 140% AMI: This is the “Missing Middle.” This includes teachers, nurses, and police officers. You don’t get cheap rent, but you might qualify to buy a condo in Kaka’ako for $200k below market value.
The “HHFDC vs. HCDA” Math Trap
Insider Tip: Not all 100% limits are equal.
This is the most confusing part of Hawaii housing, and where most people get it wrong. The two main agencies calculate “100% AMI” differently.
- HCDA (Kaka’ako/Ward Village): Uses unadjusted median income data. It is often lower.
- HHFDC (Statewide): Uses HUD “Multifamily Tax Subsidy” limits. HUD recognizes that Hawaii is expensive, so they often apply a “High Housing Cost Adjustment” that bumps the numbers up.
Comparison: Estimated 2026 Limits (Family of 4, Honolulu)
Note: These numbers are estimates based on 2025 trends. Always check the official charts.
| Program | 80% AMI Limit | 100% AMI Limit | 120% AMI Limit |
|---|---|---|---|
| HCDA (Kaka’ako) | ~$97,300 | ~$129,300 | ~$155,100 |
| HHFDC (Statewide) | **~$121,600** | ~$152,000 | ~$182,400 |
The Takeaway: You could earn $140,000 and be rejected by HCDA (for being “over-income”) but accepted by an HHFDC project as a “100% AMI” household. Always check which agency funds the building.
How to Calculate Your Income (The Compliance Way)
When we audit your file, we don’t look at what you take home (Net Pay). We look at what you generate (Gross Pay).
Step 1: Gross Pay (The W-2 Worker) Look at your paystub under “Gross Pay.”
- Hourly: Hourly Rate x Hours per Week x 52.
- Bi-Weekly: Gross Amount x 26.
- Monthly: Gross Amount x 12.
- Warning: If you work overtime consistently, we must count it. We project your future income, not just past income.
Step 2: Add “Other” Income sources Do not hide income. We will find it via EIV (Enterprise Income Verification) databases.
- Child Support: Yes, it counts, even if it is sporadic (unless you prove you are taking legal action to collect it).
- Social Security/Pension: Yes, use the gross amount before Medicare deductions.
- Assets: If you have $50,000 in a savings account, we generally add imputed income (often 0.06% to 2% passbook rate) to your total.
Step 3: Adjust for Household Size
- Single Person: $80,000 might be 80% AMI.
- Family of 4: $80,000 might be 50% AMI.
- Strategy: Include every eligible member. A baby born during the application process increases your household size, which raises your income limit, making it easier to qualify.
The “Side Hustle” Trap (Uber, Turo, & Cash)
Targeting the Gig Economy.
In 2026, almost everyone in Hawaii has a side hustle. This is where applications die.
- The Trap: You drive Uber on weekends. You think, “I spend all that money on gas, so I make zero profit.”
- The Rule: For self-employment (Uber, Doordash, Turo), we look at Net Income from Business (Schedule C).
- The Calculation: We take your Gross Earnings minus allowable IRS business expenses.
- The Danger Zone: If you haven’t filed taxes yet, we have to estimate. If you show us bank deposits of $1,000/month from Uber but can’t prove the gas expenses yet, we might count the full $1,000 as income, potentially pushing you over the limit.
- The Fix: Keep impeccable records. Bring a “Profit and Loss” (P&L) statement to your interview.
Frequently Asked Questions
Does my 401(k) count as income?
A: No, the balance of your 401(k) is usually treated as an asset, not income (unless you are actively withdrawing from it). However, we do calculate “imputed income” from assets, which is usually a very small amount added to your total.
I have a Section 8 voucher. Does AMI matter?
A: Yes. Your voucher covers the rent payment, but you must still qualify for the unit’s income limit. For example, a “Tax Credit” property might require you to be under 60% AMI to even move in, regardless of your voucher.
What if my income increases next year? Will I get evicted?
A: generally, no. For LIHTC rentals, you only need to qualify at move-in. If you get a promotion later, you can stay (though in some programs, your rent might increase). For HCDA sales, you must qualify at application and closing, but once you buy it, you can earn as much as you want.
Can I use a co-signer to qualify?
A: Generally, no. Most affordable housing programs require the applicant to live in the unit. A co-signer who lives elsewhere usually cannot be used to boost your income eligibility for a rental.
Where can I find the official 2026 charts?
A: Do not rely on random Google searches. Go directly to the HHFDC Income Limits Page or the HCDA Reserved Housing Page.
Confused by the Math?
Don’t disqualify yourself before you check.
View our current listings and see if you fit the criteria.
