California’s Rising Low-Income Housing Eligibility Amid Cost Surge

California is witnessing a significant rise in low-income housing eligibility figures as living costs continue to soar. New data from the California Department of Housing and Community Development indicates that more individuals can qualify for affordable housing programs, even among those earning six-figure salaries in certain counties. This marks a response to the rising demand for affordable living solutions amid escalating expenses related to housing, food, and other essential services.

In Santa Clara County, the low-income eligibility level for individuals has risen by 8.8% to $111,700. Meanwhile, San Francisco and San Mateo Counties have capped their low-income threshold at $109,700. Those in Sacramento, Placer, and El Dorado Counties can now qualify for low income housing programs with a single-person household income of $72,050, reflecting an 8.7% increase from the previous year. Los Angeles County’s low-income eligibility has also increased to $84,850, while San Diego County’s threshold is set at $92,700, both experiencing an 8.8% rise. In contrast, San Joaquin County adjusted its low-income level to $58,600, and Stanislaus County’s level stands at $55,200.

Experts in the housing market, such as Cam Villa, a Sacramento home loan broker, note that the increase in income eligibility helps potential clients to better understand their options for income-based loan programs. However, Villa also highlights the challenges posed by high living costs in California, which make affordability an ongoing concern despite seemingly high salaries.

The rising costs extend beyond just housing; residents like Chelsea Carmack, who recently relocated from St. Louis to Sacramento, report facing substantial difficulties in securing affordable housing options due to the current economic climate. Many low-income housing programs currently face extensive waitlists or lack adequate funding to accommodate all qualified applicants.

Elevated housing costs are further exacerbated by political issues at the federal level. The proposed 2026 budget from the Trump administration aims to cut funding for federal rental assistance programs by 43%, impacting programs including public housing and Section 8. Critics warn that such reductions could exacerbate California’s housing affordability crisis and increase rates of homelessness. Nationwide, approximately 5 million households benefit from federal rental assistance, with around 560,000 residing in California.

The federal proposal suggests transitioning rental assistance funding to a block grant system, allowing states to manage these funds independently. Concerns have been raised that cuts to rental assistance and the restructuring of funding will primarily affect working-class individuals and families, further straining their ability to afford housing.

Efforts to develop affordable housing face hurdles at multiple levels. For instance, Caltrans recently blocked a proposed site in Woodside for an affordable housing project, citing environmental concerns surrounding rare wildflower species on the land. Furthermore, a report from Enterprise Community Partners reveals that nearly 45,000 proposed affordable housing units are currently stalled due to financial shortfalls. To stimulate affordable housing development, California would need around $1.79 billion in subsidies and $574 million in tax credits.

The urgency for viable housing solutions has increased in light of recent wildfires in Southern California, underscoring the need for robust affordable housing initiatives. However, the current California budget proposal does not include funding for critical programs aimed at tackling homelessness and promoting affordable housing, raising further concerns about the state’s ability to address its housing crisis effectively.