< Previous | Index | Next >
Let's See How it Works
Please refer to example entitled:
Rental Replacement Housing Calculations for Low Income Tenants
Notes:
Explanation/Example
SUBPART E Reference § 24.402(b)(2)(ii)
Rental Replacement Housing Calculations for Low Income Tenants
1. Non-low income; rent exceeds 30% of income
Sam High has a gross income of $6,000 per month, and is not considered low income per the HUD tables. His monthly rent and utilities is $3,000. If displaced, his rental subsidy is calculated as:
Available Comparable: $3,100, includes rent and utilities
$3,100 - $3,000 = $100; $100 X 42 = $4,200
(Under the old rule the calculation would be as follows: 30% gross income is $1,800 $3,100 - $1,800 = $1,300 X 42 = $54,600)
2. Low income; rent exceeds 30% of income
Jill Low has a gross income of $1,000 per month, and is considered low income based on the HUD Income Limits for your county. Her monthly rent and utilities is $400. If displaced, her rental subsidy is calculated as:
Available Comparable: $625, includes rent and utilities
30% of monthly income is $300; since this is lower than her actual rent, it is the basis of the rental subsidy calculation. Thus, $625 - $300 = $325; $325 X 42 = $13, 650.
3. Low income; rent is less than 30% of income
Bob Below has a gross income of $1,500 per month and is considered low income based on the HUD Income Limits for your county. His monthly rent and utilities are $400. If displaced, his rental subsidy is calculated as:
Available Comparable: $500, includes rent and utilities
30% of monthly income is $450; since this is more than he is paying in rent and utilities, the actual rent and utilities is the basis of the rental subsidy calculation. Thus, $500 - $400 = $100; $100 X 42 = $4,200.
HUD Annual Survey of Income Limits for Public Housing and Housing and Section 8 Program for "your" City and State (hypothetical).
Current | Number of Persons Per Household | ||||||
---|---|---|---|---|---|---|---|
Family Size | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Your City-State | $20,700 | $33,400 | $44,100 | $54,600 | $65,900 | $77,800 | $90,900 |
To provide feedback, suggestions or comments for this page, contact Arnold Feldman arnold.feldman@fhwa.dot.gov