Starting next month, single earners making up to $100,000 annually in Los Angeles, Orange, and San Diego counties will be considered low-income, according to updated federal housing guidelines. The change, reported on May 13, 2025, reflects Southern California’s escalating cost of living, particularly in housing.
The U.S. Department of Housing and Urban Development (HUD) adjusts income thresholds yearly based on regional median incomes and living costs. In these counties, the median income for a single-person household now exceeds $125,000, driven by high-paying tech and entertainment sectors. HUD classifies low-income as 80% of the median, pushing the threshold to $100,000, up from $90,000 last year.
Housing costs are the main culprit: the median rent for a one-bedroom apartment in Los Angeles County hit $2,800 in April 2025, while Orange and San Diego counties averaged $3,000. A $100,000 salary, after taxes, leaves little for other expenses, qualifying these earners for subsidized housing programs.
Local officials worry this reclassification highlights a deepening affordability crisis. “A six-figure income used to mean stability—now it barely covers the basics,” said an Orange County housing advocate. The change aims to expand access to assistance but underscores the region’s growing economic divide as of mid-2025.