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USDA Income Limits for 2025 for Memphis, TN and Surrounding Areas
- dchapman70
- Jul 10
- 3 min read
If you’re looking for an affordable way to buy a home in the Memphis area—especially in suburban or rural neighborhoods—a USDA loan could be the perfect fit. Backed by the U.S. Department of Agriculture, USDA loans offer zero down payment, low interest rates, and flexible credit guidelines.
But before you apply, it’s important to understand one key requirement: the USDA income limit.
At Local Mortgage in Memphis, TN, we’re here to break it down and help you find out if you qualify.
What Is a USDA Income Limit?
A USDA income limit is the maximum household income you can earn and still be eligible for a USDA loan. These limits are set by the USDA and updated annually based on:
The number of people in your household
The median income for your county or region
The presence of any household members under age 18 or with disabilities
Unlike conventional loans, USDA uses household income—not just the income of the loan applicants.
2025 USDA Income Limits for Memphis, TN (Shelby County & Surrounding Areas)
As of 2025, here are the standard USDA income limits for Shelby County and surrounding eligible areas (such as Arlington, Lakeland, Millington, and parts of Fayette and Tipton counties):
Household Size | Income Limit |
1–4 people | $123,500 |
5–8 people | $163,200 |
Note: Some exceptions apply for certain deductions and allowances (e.g., childcare, dependents, medical expenses).
Want to know exactly what you qualify for? We can calculate your adjusted household income during a quick call.
How Is Income Calculated for USDA Loans?
USDA uses your gross household income—before taxes—and includes all income earners living in the home. That includes:
Full-time and part-time wages
Overtime and bonuses
Social Security income
Child support or alimony
Rental income or self-employment
Then, they apply certain deductions (for dependents, medical costs, etc.) to determine adjusted income. If your adjusted income is below the county limit, you may qualify.
Where Are USDA-Eligible Areas Near Memphis?
While USDA loans are intended for rural and suburban areas, you don’t have to move to a farm to qualify. Many neighborhoods just outside Memphis city limits fall within the USDA eligibility map.
Some USDA-eligible areas near Memphis include:
Arlington, TN
Lakeland, TN
Bartlett (fringe areas)
Millington, TN
Oakland & Piperton in Fayette County
Munford & Atoka in Tipton County
We can help you check USDA eligibility by property address—and guide you to zero-down homes that meet your budget and lifestyle.
Why Choose a USDA Loan?
USDA loans come with major advantages:
$0 down payment required
Low interest rates
Reduced mortgage insurance
Flexible credit guidelines
They’re perfect for first-time buyers, young families, or anyone looking to buy a home just outside Memphis without the steep upfront costs.
Final Thoughts
If you’re shopping for a home in the Memphis area and want a zero-down loan, understanding USDA income limits is key. At Local Mortgage, we’re proud to help home buyers navigate eligibility, maximize deductions, and find homes that qualify.
We’ll walk you through every step of the USDA loan process—from income calculation to property eligibility to final approval.
How I Can Help You
When it comes time to purchase a home or refinance an existing loan, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world but let me use my experience and expertise to help you with your particular situation.
I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.
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