On April 23, 2025, the California Department of Housing and Community Development (HCD) released the 2025 State Income Limits. The County of Santa Clara has one of the highest area median incomes (AMIs) in the country, at $195,200 for a family of four in 2025. This reflects a rapid rise in wages at the upper end of the income spectrum with the median increasing nearly $11,000 just since last year and $44,000 since 2021.
The U.S. Department of Housing and Urban Development (HUD) annually releases income limits that determine eligibility for various federal housing and community development funds. HCD adjusts these limits for use with State programs and also takes into account variations in income across the state by publishing unique income limits for each of the state’s counties. These county-level income limits are then used to determine applicant eligibility for affordable housing, based on the level of household income, and may be used to calculate affordable housing costs for housing assistance programs.
A higher median income means that residents at the lower end of the income spectrum have relatively less power to compete in the market, and are at increasing risk of being displaced or becoming unhoused. Since rents in deed-restricted affordable housing are tied to percentages of the area median income, this can also mean rent increases for people living there. Tenant protections such as rent stabilization, just cause eviction protections (going beyond requirements under existing state law), and relocation assistance are critical programs cities can enact to continue to protect people in this high-cost environment.
In Santa Clara County, we often see large increases in AMI levels, which lead to large increases in allowable rent for affordable housing. In September of 2024, the state legislature passed AB 846, which limits rent increases in all affordable housing financed through the LIHTC program, including both new and existing affordable developments. Beginning January 1, 2025, all properties that received LIHTC are subject to the same rent increase cap, of 5% + Consumer Price Index (CPI) or 10%, whichever is lower. Notably, these rent caps only apply when the area median income is rising faster than the cap; otherwise rent limits are still calculated on the basis of AMI.
Just Cause Reasons to Evict:
- Failure to pay rent
- Violation of rental agreement
- Substantial damage to unit
- Refusal to sign new lease
- Nuisance/disorderly conduct/disturbs the peace
- Denies access to unit to landlord
- Criminal activity on the property
- Take off market/Ellis Act (no-fault)
- Owner or Relative move-in (no-fault)
People living in market rate multifamily homes, if they have lived there for at least a year and the building is more than 15 years old, have similar protections under AB 1482 against extreme rent increases, with a maximum increase of 5% + CPI or 10%, whichever is lower. These protections also apply to renters of single family homes that are owned by a corporation. AB 1482 extends just cause eviction protections to tenants of these homes as well, limiting the number of reasons a tenant can be evicted. This can reduce rates of eviction and renter turnover, helping to create family and community stability while limiting displacement of renter households.