USDA Loan Income Limits in Utah 2025: Do You Qualify?
By: Kelly Sansom
Sarah, a teacher in Tooele, and her husband Mike, a nurse, earn $108,000 combined. They’ve been saving for years, but with Utah’s median home price at $575,300, a traditional 20% down payment feels impossible.
Then Sarah discovers USDA loans. The surprising news? Their income qualifies them for zero down payment financing.
If you’re wondering whether your income opens the door to one of Utah’s best homebuying programs, let’s break down exactly how USDA loan income limits in Utah work—and whether you qualify.
Understanding USDA Loan Income Limits in Utah
USDA loan income limits determine whether your household earns too much to qualify for this zero-down-payment mortgage program. The limits ensure the program serves low-to-moderate income families in rural and suburban areas.
The basic rule: Your total household income cannot exceed 115% of the area median income where you’re buying.
For 2025, the standard USDA loan income limits in Utah are:
- $119,850 for households with 1-4 members
- $158,250 for households with 5-8 members
For households exceeding eight members, add 8% of the four-person limit for each additional person.
These limits apply to most Utah counties, though some variations exist based on local cost of living.
Utah County-by-County Breakdown
Most Utah counties follow the standard limits above, including Box Elder, Cache, Carbon, Duchesne, Emery, Garfield, Iron, Juab, Morgan, Tooele, Uintah, Washington, and Weber.
Salt Lake County: Standard limits apply to eligible areas, though most incorporated cities (Salt Lake City, Sandy, South Jordan) don’t qualify for USDA financing due to population density.
Summit County: Slightly higher limits due to resort-area economics, though many areas remain eligible.
High-growth areas: Counties like Utah County (Provo, Orem) and Washington County (St. George) have shrinking eligible areas but maintain standard income limits where USDA properties exist.
Want to verify a specific property qualifies? Fill out the form.
Real Utah Examples: Who Qualifies?
Example 1: The Teacher & Nurse (Grantsville)
Household: Sarah, Mike, 2 kids
Income: $108,000/year
Location: Grantsville, Tooele County (median home price: $475,000)
Do they qualify? Yes. With four people and $108,000 income, they’re well under the $119,850 limit. They can finance a $475,000 home with zero down payment, keeping their savings for moving costs and emergencies.
Example 2: The Growing Family (Cedar City)
Household: James, Lisa, 4 kids
Income: $145,000/year
Location: Cedar City, Iron County (median home price: $425,000)
Do they qualify? Yes. With six people, they can earn up to $158,250. Their $145,000 income qualifies them for Cedar City’s more affordable housing market.
Example 3: The Multi-Generational Home (Smithfield)
Household: Marcus & Jennifer (teachers), Jennifer’s parents (retired), 3 kids
Income: Couple = $115,000; Parents = $32,000 (Social Security)
Location: Smithfield, Cache County (median home price: $485,000)
Do they qualify? Yes. With seven people, their limit is $158,250. After the elderly deduction ($400 of parents’ income counted, then subtracted), their adjusted income is $146,600—under the limit.
These examples show how the USDA loan income limits in Utah work in real-world scenarios. But what actually counts as “income”?
What Counts as Household Income?
USDA looks at income from every adult household member (18+)—even those not on the loan application. This surprises many buyers but reflects the program’s focus on true household financial need.
Income That Counts
- Employment income (salaries, wages, overtime, bonuses, tips)
- Self-employment net income (after business expenses)
- Social Security benefits
- Retirement income (pensions, 401(k) distributions)
- Disability payments
- Child support and alimony received
- Rental property net income
- Investment income (interest, dividends)
Important Exclusions
Full-time student dependents: If a dependent family member is a full-time student, only $480 of their annual income counts—then gets deducted. Effectively, student income doesn’t affect qualification.
Elderly or disabled household members: Only $400 of their annual income counts, then gets deducted.
Completely excluded:
- Foster care payments
- Student financial aid
- Income from children under 18
- Gifts
- Lump-sum inheritances or insurance settlements
How Income is Calculated
Lenders project your expected income for the next 12 months, not just past earnings.
- Consistent salary: Your current annual salary
- Variable income: Two-year average of overtime, bonuses, commissions
- Self-employed: Net income from past two years’ tax returns, averaged
- Recent job changes: Your new salary (even if just started)
Explore how to get a USDA loan in Utah for detailed guidance on documenting your income properly.
Calculating Your Household Income
Here’s the step-by-step process:
Step 1: List all adults (18+) who will live in the home
Step 2: Calculate each person’s gross annual income
Step 3: Apply deductions (students, elderly/disabled, childcare costs)
Step 4: Total it up
Step 5: Compare to the limit for your household size
Example:
The Martinez family (Spanish Fork):
– Dad (electrician): $68,000
– Mom (dental hygienist): $32,000
– Son (20, college student, part-time job): $6,500
– Two kids under 18
Calculation:
Dad: $68,000
Mom: $32,000
Son: $0 (student exclusion)
Total: $100,000
With five people, they need to stay under $158,250. At $100,000, they easily qualify.
Strategies for Borderline Incomes
Close to the limit? Consider these approaches:
Timing matters: USDA uses projected future income. If you’re reducing hours, nearing retirement, or expect income to decrease, your timing might work in your favor.
Adult children moving out: Once an adult child establishes a different primary residence, their income no longer counts.
Document carefully: Self-employed? Your tax returns determine countable income. Legitimate business expenses reduce your net income—and thus your countable income for USDA purposes.
Beyond Income: Other Requirements
Meeting the USDA loan income limits in Utah is crucial but not sufficient alone. You’ll also need:
- Property location: Must be USDA-eligible (suburban/rural areas)
- Credit score: 640+ for automatic approval; 600-639 possible with manual underwriting
- Debt-to-income ratio: Total monthly debts shouldn’t exceed 41% of gross income
- Primary residence: Must be your main home
- Citizenship: U.S. citizen, non-citizen national, or qualified alien
Our comprehensive guide to Utah USDA mortgages covers every requirement in detail.
Why Partner with ClearPath Utah Mortgage?
What sets us apart:
Crystal-clear communication: We translate USDA guidelines into plain English, so you’re never confused about where you stand or what comes next.
Complex situation expertise: Borderline income? Self-employed? Multi-generational household? We’ve successfully guided hundreds of Utah families through scenarios just like yours.
The broker advantage: As a mortgage broker, we shop your loan across hundreds of lenders—not just one bank’s programs. That means your scenario goes out to hundreds of lenders, and you see what comes back — rates and fees, in writing, before you commit to anything. More savings, month after month, for the life of your loan.
Take Your Next Step
Ready to find out if you qualify? Let’s calculate your household income, verify property eligibility, and get you pre-approved.
Your path to Utah homeownership starts with a simple question: “Do I qualify?” Let’s find out together—and get you moving toward the home you deserve.
Learning Center: Learn about USDA Mortgages in Utah
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