What is a Low-Income Community?

Distress Criteria: A Low Income Community means any population census tract that meets one of the following criteria (as reported in the most recently completed decennial census published by the U.S. Bureau of the Census):

• The poverty rate for census tract is at least 20 percent, or
• In the case of a Low Income Community located:
• outside of a metropolitan area, the median family income (MFI) for such tract does not exceed 80 percent of statewide MFI, or
• within a metropolitan area, the MFI for such tract does not exceed 80 percent of the greater of statewide MFI or metropolitan area MFI, or
• within a possession of the United States, the MFI does not exceed 80% of possessionwide median family income.

Targeted Areas: The Secretary may designate any area within any census tract as a Low Income Community if:

• The boundary of such area is continuous,
• the area would satisfy the distress criteria of a Low Income Community if it were a census tract, and
• an inadequate access to investment capital exists in such area.

Areas Not Within Census Tracts: In the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the U.S. Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income.