What is considered low- or moderate-income or LMI?

Assisting low- or moderate-income geographies and individuals is a primary focus of CRA.  The collective income group is often abbreviated “LMI” when describing both the individuals and areas together.

LMI Individuals

An individual’s income is considered to be LMI based on how it measures up to the area median family income. Overall, to be classified as LMI, an individual or family’s household income must be no greater than 80% of the area median income for the county or area where they reside.

These income levels can be further separated by low- or moderate-income.  Moderate-income individuals have an annualized family income between 50% and 80% of the HUD area median income.  Low-income individuals have an annualized family income of less than 50% of the HUD area median income.  Median incomes for every county in the United States can be found on HUD’s website.

LMI Geographies

The U.S. Census Bureau divides all United States geographies into census tracts and collects data about each individual census tract. This data is collected through the 10-year census, as well as the 3-year and 5-year American Community Surveys. Census tracts are small, relatively permanent statistical subdivisions of a
county that are uniquely numbered in each county with a numeric code. Census tracts generally average around  4,000 inhabitants.

The tract income level for each census tract is assigned based on the tract median income of the residents in that census tract. Census tracts can be considered upper, middle, moderate or low income.

moderate-income census tract indicates that the tract median family income of the households or residents in the census tract are between 50% and 80% of the HUD area median income for the larger metropolitan statistical area (MSA) where the census tract is located. If a census tract is not located in an official MSA and is in a rural county for example, the tract median family income is measured against the median income of all the other non-MSA counties in the state where the census tract is located.

low-income census tract indicates that the tract median family income of the households or residents in the census tract are below 50% of the HUD area median income for the larger metropolitan statistical area (MSA) where the census tract is located. If a census tract is not located in an official MSA and is in a rural county for example, the tract median family income is measured against the median income of all the other non-MSA counties in the state where the census tract is located.

Last modified April 28, 2023