“HOW IS YOUR RENT DETERMINED”

Project – Based Section 8

Why Determining Income and Rent correctly is important

Many resident families pay incorrect rent;

The main causes of this problem are:

· Under reporting of income by resident families

· Owner/Management Agents not granting exclusions and deductions to which resident families are entitled.

Owner/Management Agents and residents have responsibility in ensuring that the correct rent is paid.

Income Determinations

A family’s anticipated gross income determines not only eligibility for assistance, but also determines the rent a family

Will pay and the subsidy required, the anticipated income, subject to exclusions and deductions the family receive during the next twelve (12)

Months, is used to determine the family’s rent.

What is Annual income?

Gross income-Income Exclusions= Annual Income

What is Adjusted Income?

Annual income –Deductions = Adjusted Income

Determining Tenant rent-- Project Based Section 8 rent Formula

The rent a family will pay is the highest of the following amounts:

· 30% of the family’s monthly adjusted income

· 10% of the family’s monthly income

· Welfare rent or welfare payment form agency to assist family in paying housing costs.

· $25.00 Minimum rent

HUD assisted residents are required to report all income from all sources to the Owner or Agent.

Exclusions to income and deductions are part of the tenant rent process.

Reference Materials

Legislation:

· Quality Housing and Work Responsibility Act of

1998, Public Law 105-276, 112 Stat. 2518 which amended the United States Housing Act of 1937,

42 USC 2437, et. seq.

Regulations:

· General HUD program Requirements , 24 CFR part 5

Handbook:

· 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs

For More Information:

Find out more about HUD’s programs on HUD’s Internet homepage at http://www.hud.gov

Martha Hood Fair Housing Coach