USDA Loan Income Limits in Texas for 2026

USDA loans are one of the best-kept secrets in Texas mortgage financing. Zero down payment, competitive interest rates, and no private mortgage insurance — for buyers who qualify. The catch: your household income has to fall within USDA's limits, and the property has to be in a USDA-eligible area. This guide covers both — with specific attention to the DFW-area communities where I originate USDA loans.

How USDA Income Limits Work

USDA sets income limits at the county level and adjusts them annually. The limit is not based on what the borrowers earn — it's based on the total gross income of all adult household members, whether or not they're on the loan. If you have a roommate, an adult child, or any other adult living in the home, their income counts toward the limit.

There are two tiers of limits:

• Standard income limit: Applies to most borrowers and most eligible properties.
• Moderate income limit: A higher threshold used for USDA Direct loans (which I don't originate — those go directly through USDA's Rural Development office). The loans discussed here are USDA Guaranteed loans, which use the standard limits.

Limits are broken into two household sizes: 1–4 person households and 5–8 person households. The 5–8 limit is set higher to account for larger family expenses.

USDA Income Limits for Key Texas Counties (2026)

The following are approximate 2026 USDA income limits for key DFW-area counties. USDA adjusts these limits periodically — always verify current limits with your loan officer before relying on them for qualification decisions.

Note: Limits shown are approximate. USDA updates income limits annually. Verify current limits at usda.gov or by calling or texting me at 469-545-7180.

What Counts as Household Income for USDA?

This is where many buyers get surprised. USDA doesn't just count the borrowers' income — it counts the income of every adult (18+) in the household who will be living in the home. This is called "household income" and it's different from "qualifying income."

Income sources that count toward the household limit:

• W-2 wages and salary for all adult household members
• Self-employment income
• Social Security and pension income
• Rental income from other properties
• Alimony and child support received
• Unemployment benefits
• Investment income above $480 annually

Allowed deductions that can reduce your counted income:

• $480 per dependent child under 18
• $480 per full-time student over 18
• $480 per disabled household member
• Documented annual childcare expenses for children under 12
• Medical expenses for elderly (62+) or disabled household members exceeding 3% of gross income

These deductions can meaningfully reduce your counted income. A family with two children under 18, for example, gets a $960 deduction off their gross income before comparison to the limit. Work through this math carefully with your loan officer before assuming you don't qualify.

USDA-Eligible Areas Near Dallas–Fort Worth

USDA eligibility is property-specific — based on USDA maps, not just the city name. As DFW communities grow and are reclassified, eligibility can change. The following communities have generally been USDA-eligible in recent years and where I actively originate USDA loans:

• Forney, TX (Kaufman County) — Forney mortgage page
• Royse City, TX (Rockwall County) — Royse City mortgage page
• Waxahachie, TX (Ellis County)
• Terrell, TX (Kaufman County) — Terrell mortgage page · USDA loans in Terrell
• Kaufman, TX (Kaufman County)
• Ennis, TX (Ellis County)
• Corsicana, TX (Navarro County)
• Cleburne, TX (Johnson County)
• Greenville, TX (Hunt County)

Always verify a specific property's USDA eligibility before proceeding. I check eligibility for your specific address myself at no charge — takes about 60 seconds on the USDA map tool.

What Disqualifies You from a USDA Loan?

Beyond income limits and property location, other factors can affect USDA eligibility:

• Existing adequate housing: If you currently own adequate housing nearby, USDA may determine you don't need rural housing assistance. This is rarely a disqualifier in practice for most buyers.
• Income above the limit: If total household gross income exceeds the county limit after allowed deductions, you don't qualify for USDA — but you may still qualify for FHA or Conventional financing.
• Property type: USDA is for primary residences only. No investment properties, vacation homes, or income-producing farms with USDA Guaranteed loans.
• Property condition: USDA has property condition standards. Homes with significant deferred maintenance, structural issues, or health/safety concerns may require repairs before the loan can close.

USDA vs FHA: Which Is Better for Texas Buyers?

If you're income-qualified and the property is in a USDA-eligible area, USDA typically wins on paper — zero down vs 3.5% down, and the annual mortgage insurance (0.35% of the loan balance) is generally lower than FHA's annual MIP. The tradeoff is that USDA has the household income cap and the geographic restriction. FHA has no income limit and applies to properties in any city.

For buyers in Garland, Dallas, Plano, or McKinney proper — dense urban areas — USDA is usually not available, so FHA or Conventional is the path. For buyers in Forney, Royse City, Waxahachie, or surrounding East/South DFW suburbs, USDA is worth checking first. I run both scenarios side by side myself so you can see the real monthly payment difference before you decide.