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 that these competitive benefits are reserved for low- to medium-income borrowers, the U.S. Department of Agriculture (USDA) puts restrictions on the property location and how much income a household makes.

In 2025, a household of 1-4 must make less than $112,450, and a household of 5-8 must make $148,450 or less to qualify for USDA. You can check your USDA income eligibility here.

What does the USDA consider as "rural"?

Though often referred to as "Rural Housing loans," you don't have to live in the country or purchase farmland to use a USDA loan. According to the U.S. Census Bureau, a whopping 97% of land is located within USDA-eligible boundaries.*

While homes in large cities won’t qualify for this loan financing, many surrounding towns and cities will.

The USDA determines rural areas by factoring 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 three 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 yearly.

Other USDA Property Requirements

Outside of property requirements, the USDA only allows you to purchase a single-family home with the program, meaning the home must be your primary residence — not an investment or income-earning property.

The USDA also sets requirements for the home itself to ensure it is safe and livable.

Here are some of the major requirements for homes:

• Have functional heating and cooling systems
• Offer easy access from a paved or all-weather road
• Be structurally sound, with a foundation that will last at least the life of the mortgage
• Have adequate roofing
• Have a functional and operational electrical system without any frayed or exposed wiring
• Offer working plumbing and adequate water pressure to ensure waste removal

After you apply for your loan, your USDA lender will send an appraiser to assess the home's value and condition and ensure it meets all the above standards.

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 will apply for a USDA-guaranteed loan, which the USDA backs, but private lenders, like Neighbors Bank, offer.

If you have a low or very low income, you may qualify for a USDA Direct Loan, which the USDA offers directly. While your household income is capped at 115% of the median area income with USDA-guaranteed loans, USDA direct loans require that your household makes no more than 80% of the area’s median income. The availability of these loans also varies.

You can learn more about USDA-guaranteed vs. USDA direct loans here.

Neighbors Bank is a Top 5 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: U.S. Census Bureau Rural Housing Report

†Source: USDA Annual Lender Rankings