Energy Rebate Income Eligibility Guide 2026: AMI Tiers Explained
Whether you qualify for federal energy rebates in 2026 — and how much you can get — comes down almost entirely to one number: your household income as a percentage of the Area Median Income for your county. Get this right and the math on your rebate becomes straightforward. Get it wrong and you might leave thousands of dollars on the table by assuming you do not qualify, or waste time applying for a tier you are not in.
This guide walks through exactly how AMI works, where to look up your specific number, and what the thresholds mean for the two programs that still exist in 2026: HOMES ($4.3B) and HEAR ($4.5B). The 25C and 25D tax credits are gone after the One Big Beautiful Bill ended them December 31, 2025, but these two rebate programs are still very much alive. Use our rebate calculator to get a personalized estimate in under a minute.
What Is Area Median Income (AMI)?
Area Median Income is the midpoint household income for a given geographic area — meaning half of households earn above it and half earn below. HUD (the Department of Housing and Urban Development) calculates and publishes AMI figures every year for every county, metropolitan statistical area, and non-metropolitan county in the country.
The critical word in the name is area. AMI is not a national figure. A household earning $70,000 a year in rural Mississippi looks very different from a household earning $70,000 in San Jose. Mississippi’s AMI might put that $70,000 household well above 100% AMI. San Jose’s would put them somewhere around 40% AMI. The same income, wildly different rebate eligibility.
HUD updates AMI limits every spring, typically in April or May. The 2025 limits published in April 2025 are what HOMES and HEAR programs are using for 2026 applications in most states, though some states may lag by a year. Check with your state program if timing matters for your application.
AMI is always calculated for a household of four. Adjustments for smaller or larger households use a standardized formula — more on that in the household size section below.
AMI Tiers for HOMES and HEAR Rebates
Both programs use the same three income tiers, though the rebate amounts and rules differ between them:
| Tier Name | AMI Range | HOMES Max Rebate | HEAR Max Rebate |
|---|---|---|---|
| Low Income | ≤80% AMI | $8,000 (up to 80% of cost) | $14,000 (up to 100% of cost) |
| Moderate Income | 80–150% AMI | $4,000 (up to 50% of cost) | $7,000 (up to 50% of cost) |
| Market Rate | >150% AMI | Limited / $0 (state-dependent) | Not eligible |
A few things to notice here. First, HEAR completely cuts off at 150% AMI — if you are above that threshold, the HEAR program has nothing for you regardless of what appliance you are replacing. HOMES has more flexibility at the state level, with some states creating supplemental programs for higher-income households, though typically with stricter energy savings requirements (35%+).
Second, the low-income tier covers 100% of costs for HEAR but only 80% for HOMES. In practice, HOMES projects are larger and more expensive, so the dollar caps ($8,000 vs $14,000) are more likely to be the binding constraint anyway.
Third, the moderate-income tier (80–150% AMI) covers a wide range. A household at 81% AMI and a household at 148% AMI are in the same tier despite earning substantially different amounts. This is intentional — the programs were designed to be administratively simple, not perfectly means-tested.
For a deeper dive into how these tiers apply to specific upgrades, see our HOMES program guide and HEAR program guide.
How to Find Your AMI Percentage
There is no single federal lookup tool that covers every rebate program — but here are the three most reliable methods:
Method 1: HUD Income Limits Direct
Go to huduser.gov/portal/datasets/il.html, select your state and county, and look up your household size row. HUD publishes limits at 30%, 50%, 80%, and 120% AMI for every area. If the 80% limit for a family of four in your county is $62,400 and your household earns $59,000, you are at roughly 76% AMI — in the low-income tier.
Method 2: Our Rebate Calculator
Enter your zip code and annual household income into our rebate calculator and we do the HUD lookup automatically. You will see your AMI percentage, your tier, and the rebate amounts you are eligible for across both HOMES and HEAR.
Method 3: Your State Program Website
States running HOMES or HEAR programs typically publish their own income limit tables, sometimes adjusted from the HUD base figures. If your state is among those with an active program — California, New York, Texas, and 20 others — their program pages will have exact income thresholds.
One trap to avoid: do not confuse gross income with adjusted gross income (AGI). These programs use total gross household income, not what you report on line 11 of your 1040. That means before-tax wages, self-employment income, Social Security, rental income, and similar sources all count. For some households, this is meaningfully different from their AGI.
Income Limits by Metro Area
To give you a concrete sense of the variation, here are the 80% AMI limits for a household of four in selected metros as of 2025:
| Metro Area | 80% AMI (4-person HH) | 150% AMI (4-person HH) |
|---|---|---|
| San Jose-Sunnyvale-Santa Clara, CA | $131,800 | $247,125 |
| San Francisco-Oakland-Berkeley, CA | $127,200 | $238,500 |
| New York-Newark-Jersey City, NY-NJ | $107,200 | $201,000 |
| Boston-Cambridge-Newton, MA-NH | $106,400 | $199,500 |
| Seattle-Tacoma-Bellevue, WA | $99,400 | $186,375 |
| Denver-Aurora-Lakewood, CO | $95,200 | $178,500 |
| Chicago-Naperville-Elgin, IL-IN-WI | $87,400 | $163,875 |
| Austin-Round Rock-Georgetown, TX | $86,600 | $162,375 |
| Houston-The Woodlands-Sugar Land, TX | $76,400 | $143,250 |
| Phoenix-Mesa-Chandler, AZ | $75,000 | $140,625 |
| Atlanta-Sandy Springs-Alpharetta, GA | $80,400 | $150,750 |
| Miami-Fort Lauderdale-Pompano Beach, FL | $68,000 | $127,500 |
| Rural Alabama (non-metro) | $49,400 | $92,625 |
| Rural Mississippi (non-metro) | $46,600 | $87,375 |
The spread is enormous. A household of four earning $80,000 is in the low-income tier in San Jose (eligible for the max $8,000 HOMES rebate and $14,000 HEAR rebate) but in the market-rate tier in rural Mississippi (potentially ineligible for HEAR entirely). This is why checking your specific area matters so much before making any assumptions.
HOMES Income Requirements
The HOMES program ties your rebate amount directly to two variables: your AMI tier and the energy savings your project achieves. The income piece works as follows:
At 80% AMI or below, you qualify for the maximum $8,000 rebate with the program covering up to 80% of total project cost. A $10,000 project gets you $8,000 (80% = $8,000, and the cap is $8,000). A $6,000 project gets you $4,800 (80% of $6,000).
At 80–150% AMI, the maximum drops to $4,000 and cost coverage drops to 50%. A $10,000 project gets you $4,000 (50% = $5,000, capped at $4,000). A $6,000 project gets you $3,000 (50% of $6,000).
Above 150% AMI, eligibility is state-dependent. Most states exclude this tier from HOMES or require significantly larger energy savings (35%+ modeled reduction) to qualify for a reduced rebate amount. A handful of states have funded supplemental programs for market-rate households. Check our state pages for what is available in your area.
One important nuance: HOMES also requires that your project demonstrate a minimum 15% energy savings for the home overall. The income tier affects how much you get, but the energy savings threshold is a separate eligibility gate that applies regardless of income. See the HOMES program guide for full details on energy savings requirements.
HEAR Income Requirements
HEAR has a stricter income cutoff than HOMES: households above 150% AMI are simply not eligible, full stop. There is no state-discretionary tier for higher earners. This is a hard federal rule.
Within the two eligible tiers, here is how the HEAR rebates stack up:
| Equipment | ≤80% AMI (max rebate) | 80–150% AMI (max rebate) |
|---|---|---|
| Heat pump (heating & cooling) | $8,000 | $4,000 |
| Heat pump water heater | $1,750 | $875 |
| Electric stove / induction cooktop | $840 | $420 |
| Heat pump clothes dryer | $840 | $420 |
| Electrical panel upgrade | $4,000 | $2,000 |
| Wiring upgrades | $2,500 | $1,250 |
| Insulation / air sealing / ventilation | $1,600 | $800 |
| Per-household HEAR maximum | $14,000 | $7,000 |
Unlike HOMES, HEAR does not require energy modeling or a whole-home performance requirement. You can replace a single heat pump water heater and get the HEAR rebate for that item alone — no audit, no minimum savings threshold. This makes HEAR faster and simpler to access. Read more in our HEAR program guide, and use the water heater rebate calculator or heat pump rebate calculator to see exact amounts for your equipment.
How Household Size Affects Your Eligibility
AMI limits are published for a household of four, but HUD adjusts them for different household sizes using a standardized multiplier. Smaller households have lower limits; larger households have higher limits.
| Household Size | Adjustment vs 4-Person Limit |
|---|---|
| 1 person | 70% of 4-person limit |
| 2 persons | 80% of 4-person limit |
| 3 persons | 90% of 4-person limit |
| 4 persons | 100% (baseline) |
| 5 persons | 108% of 4-person limit |
| 6 persons | 116% of 4-person limit |
| 7 persons | 124% of 4-person limit |
| 8 persons | 132% of 4-person limit |
Let’s make this concrete. Say the 80% AMI limit for a 4-person household in your county is $68,000. For a 2-person household, the 80% limit would be $54,400 (80% of $68,000). For a 6-person household, it would be $78,880 (116% of $68,000).
This adjustment matters. A single-person household at $45,000 might appear well above the 80% threshold at first glance — but once you apply the size adjustment, they could easily fall into the low-income tier depending on their county.
Who counts as part of your household? Generally, anyone who lives in the home and contributes to household income. This typically includes your spouse or partner, adult children living at home who work, and any other adults who share expenses. Minor children are counted for household size but their income (if any) typically does not count. Some states have specific definitions — ask your program administrator if you are unsure about a borderline situation.
Documentation You Will Need
Claiming the right income tier requires proof. Here is what most state programs ask for:
Income Documentation
- Federal tax return (most recent year) — The simplest proof. Most programs accept a copy of your 1040 showing total gross income.
- W-2s and 1099s — If your income has changed significantly since your last return, current-year documents may be accepted.
- Social Security award letters — Required if Social Security is part of your income.
- Self-employment income — Schedule C or profit-and-loss statement. Self-employment income is included even if it does not show up on a W-2.
- Rental income documentation — Schedule E from your return.
Identity and Residency
- Government-issued ID (driver’s license, passport)
- Proof of ownership (deed or mortgage statement)
- Proof of primary residence (utility bill, bank statement with the address)
What You Do Not Need at Application
You generally do not need to prove income tier eligibility before getting an energy audit. Audits can proceed while documentation is gathered. However, final rebate approval requires complete documentation. Do not let paperwork delays slow down your contractor.
Keep copies of everything. States can request additional documentation weeks or months after initial approval. A complete file from the start prevents headaches later.
Ready to see your specific rebate amount? Run your income and zip code through our energy rebate calculator for an instant estimate. For strategies to maximize your total rebate across multiple programs, read our guide to stacking energy rebates. And for a full picture of every incentive available this year, start with the 2026 energy rebates guide.