Fact Sheet - Hud (Page 2 of 4) in pdf

Project-Based Section 8 Rent Formula:

family assets, see Exclusions from Annual Income,

below Welfare assistance

The rent a family will pay is the highest of the



following amounts:

Periodic and determinable allowances, such as



alimony and child support payments and regular

30% of the family’s monthly adjusted income



contributions or gifts received from organizations or

10% of the family’s monthly income

from persons not residing in the dwelling



Welfare rent or welfare payment from agency



All regular pay, special pay and allowances of a

to assist family in paying housing costs.

member of the Armed Forces (except for special pay

for exposure to hostile fire)



$25.00 Minimum Rent



For Section 8 programs only, any financial

assistance, in excess of amounts received for tuition,

that an individual receives under the Higher

Income and Assets

Education Act of 1965, shall be considered income

to that individual, except that financial assistance is

HUD assisted residents are required to report all income

not considered annual income for persons over the

from all sources to the Owner or Agent (OA).

age of 23 with dependent children or if a student is

Exclusions to income and deductions are part of the

living with his or her parents who are receiving

tenant rent process.

section 8 assistance. For the purpose of this

paragraph, “financial assistance” does not include

When determining the amount of income from assets to

loan proceeds for the purpose of determining

be included in annual income, the actual income derived

income.

from the assets is included except when the cash value

of all of the assets is in excess of $5,000, then the

Assets Include:

amount included in annual income is the higher of 2% of



Stocks, bonds, Treasury bills, certificates of deposit,

the total assets or the actual income derived from the

money market accounts

assets.



Individual retirement and Keogh accounts



Retirement and pension funds

Annual Income Includes:



Cash held in savings and checking accounts, safe



Full amount (before payroll deductions) of wages

deposit boxes, homes, etc.

and salaries, overtime pay, commissions, fees, tips



Cash value of whole life insurance policies available

and bonuses and other compensation for personal

to the individual before death

services



Equity in rental property and other capital



Net income from the operation of a business or

investments

profession



Personal property held as an investment



Interest, dividends and other net income of any kind



Lump sum receipts or one-time receipts

from real or personal property (See Assets



Mortgage or deed of trust held by an applicant

Include/Assets Do Not Include below)



Assets disposed of for less than fair market value.



Full amount of periodic amounts received from

Social Security, annuities, insurance policies,

Assets Do Not Include:

retirement funds, pensions, disability or death



Necessary personal property (clothing, furniture,

benefits and other similar types of periodic receipts,

cars, wedding ring, vehicles specially equipped for

including lump-sum amount or prospective monthly

persons with disabilities)

amounts for the delayed start of a periodic amount



Interests in Indian trust land

(except for deferred periodic payments of



Term life insurance policies

supplemental security income and social security



Equity in the cooperative unit in which the family

benefits, see Exclusions from Annual Income,

lives

below)



Assets that are part of an active business



Payments in lieu of earnings, such as unemployment



Assets that are not effectively owned by the

and disability compensation, worker’s compensation

applicant

and severance pay (except for lump-sum additions to

Fact Sheet - Hud Page 2

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