USDA Loan Property Eligibility Map

USDA Loan Property Eligibility Requirements

USDA loans are designed to make homeownership more accessible in rural and some suburban areas. They offer a 0% down payment option, low interest rates, and low upfront and annual fees in place of mortgage insurance.

To ensure these benefits reach low- to moderate-income buyers, the USDA puts restrictions on the property location and how much income a household makes.

In 2026, a household of 1-4 must make less than $119,850, and a household of 5-8 must make $158,250 or less to qualify for USDA.

Check your USDA income eligibility here.

What Does the USDA Consider "Rural"?

Though often referred to as "rural housing loans," you don't have to live in the countryside to qualify.

While homes in large cities won't qualify for this loan financing, many surrounding towns and cities will. Many suburban and small-town areas are eligible for USDA financing.

The USDA determines rural areas by factoring in a community's population, proximity to a major metropolitan statistical area (MSA), and overall access to mortgage credit.

To be considered rural by the USDA, an area must fall into one of these categories:

1. The area has no more than 10,000 residents.
2. If the area has 10,001 to 20,000 residents, it cannot be located in a Metropolitan Statistical Area (MSA). There must also be a serious lack of affordable home loans available for low- and moderate-income families.
3. If the area has 20,001 to 35,000 residents, it must have once been considered rural but lost its status in the 1990, 2000, or 2010 U.S. Census. The area must also have a serious lack of affordable mortgage options.

To account for population changes, the USDA typically updates the property eligibility areas every five years.

Other USDA Loan Requirements

In addition to property location guidelines, USDA loans are intended for owner-occupied, single-family homes. The home must be your primary residence, not an investment or income-producing property.

The USDA also requires that the home meet basic standards for safety, soundness, and livability. They evaluate this through a USDA home appraisal.

In general, to pass the appraisal, eligible homes must:

• Be structurally sound and built to last
• Have working heating, electrical, and plumbing systems
• Provide safe access from a paved or all-weather road
• Meet basic requirements for roofing, water, and utilities

Next Steps

After you've confirmed your income eligibility and checked that the property you want to buy is USDA-eligible, the next step is meeting a lender's financial qualifications. Most homebuyers apply for a USDA-guaranteed loan, which is backed by the USDA but offered through private lenders like Neighbors Bank.

If you have a low or very low income, you may qualify for a USDA Direct Loan, which the USDA offers directly. Direct loans have stricter income limits and are generally available only to households earning no more than 80% of the area median income. The availability of these loans also varies.

Learn more about USDA-guaranteed vs. USDA direct loans.

Neighbors Bank is a Top 3 USDA Lender†, and we are dedicated to finding the best loan option for you. If you'd like to get started with a USDA-guaranteed loan, check your eligibility today.

†Source: USDA Annual Lender Rankings