What Is Considered Low Income in Arizona?

Defining “low income” is a complex task, as it is not a single, universally applied figure. Instead, various governmental and non-profit organizations establish their own criteria to determine eligibility for support services and benefits. These definitions often depend on the specific program’s purpose, reflecting the diverse needs and economic realities across different regions. Understanding these varying benchmarks is important for individuals seeking assistance, as eligibility can differ significantly from one program to another.

Federal Poverty Guidelines as a Benchmark

The U.S. Department of Health and Human Services (HHS) annually establishes the Federal Poverty Guidelines (FPG), which serve as a national standard for defining poverty. These guidelines are primarily utilized to determine eligibility for various federal programs, including Medicaid. The FPG figures are updated each year to account for changes in the Consumer Price Index.

The FPG varies based on household size, with the income threshold increasing for each additional person in a family or household. While the FPG provides a foundational understanding of poverty levels, many programs use percentages of these guidelines rather than the exact figures to define low income. This allows for a broader range of eligibility, recognizing that financial hardship can exist above the strict poverty line.

Area Median Income and Local Variations

Beyond the national Federal Poverty Guidelines, the Area Median Income (AMI) offers another widely used benchmark for defining low income, particularly in housing-related programs. AMI differs from FPG by accounting for the cost of living in specific geographic areas, such as metropolitan statistical areas or counties. The U.S. Department of Housing and Urban Development (HUD) calculates and publishes these figures annually, reflecting local economic conditions.

Like FPG, AMI figures also vary significantly based on household size, with larger households having higher income thresholds. These numbers can differ substantially even within Arizona, illustrating the diverse economic landscapes from urban centers to more rural regions. For example, in the Phoenix-Mesa-Glendale Metropolitan Statistical Area, the median income was $101,300 for the 2024/2025 fiscal year. AMI provides a localized understanding of what constitutes low income, particularly for housing assistance where local market rates are a factor.

How Different Arizona Programs Define Low Income

Arizona does not have a single, uniform definition for “low income”; instead, various state and local programs utilize different percentages of either the Federal Poverty Guidelines (FPG) or the Area Median Income (AMI) to determine eligibility. These varying thresholds mean that a family might qualify as low income for one type of assistance but not for another, depending on the specific program’s criteria. The application of FPG and AMI is evident across several key assistance areas.

Arizona’s Medicaid program, known as the Arizona Health Care Cost Containment System (AHCCCS), sets income limits based on percentages of the FPG. For most adults under 65, eligibility for AHCCCS is set at or below 138% of the FPG. This percentage means that a four-person family in 2024, with an FPG of $31,200, would generally be eligible if their income was up to approximately $43,056. Eligibility for children varies slightly by age group, ranging from 138% to 152% of FPG, while the KidsCare program can extend coverage to children in families with incomes up to 230% of the FPG.

For food assistance, known as Nutrition Assistance or SNAP, Arizona programs typically use FPG with different percentage thresholds. Most households must meet a gross income limit of 130% of the FPG. However, households that include an elderly member or an individual with a disability may qualify under a net income limit of 100% of the FPG. This distinction acknowledges the unique financial situations of vulnerable populations.

Childcare assistance programs, administered by the Arizona Department of Economic Security (DES), also rely on FPG and State Median Income (SMI). For initial applications, a family’s gross monthly income must be at or below 165% of the FPG. For families already receiving assistance, eligibility for continued support can extend up to 85% of the State Median Income during redetermination periods. This tiered approach helps support families as their income potentially increases.

Housing assistance programs, including those supported by HUD like Section 8 and HOME Investment Partnerships, frequently define low income using percentages of the Area Median Income. These programs categorize income levels such as extremely low-income (ELI) at 30% of AMI, very low-income (VLI) at 50% of AMI, and low-income (LI) at 80% of AMI. For example, a four-person household in Maricopa County would be considered very low-income for housing assistance if their income was at or below $51,400. These percentages are applied to the specific AMI for the county or metropolitan area, reflecting local housing costs.

Energy assistance, such as the Low Income Home Energy Assistance Program (LIHEAP) and various utility-specific programs, often sets income eligibility at 150% of the FPG. Some Arizona utility companies offer discounts for customers whose household income does not exceed 150% of the federal poverty level. LIHEAP in Arizona generally uses 60% of the State Median Income, but for larger households (typically those with nine or more members), 150% of the FPG may be the applicable limit. The varied application of these benchmarks ensures that different types of support can be tailored to the specific financial needs and circumstances of Arizona residents.