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Presentations of Uniform Act Final Rule Implementation

What is Income?

Notes:

The revision in the rule when calculating benefits for tenants and occupants of less than 90 days was to limit the use of the 30% average monthly household income to only those situations in which the income falls below the low-income limit established by HUD for the area.

Rental Subsidy Computations and Use of Income

The gross income of a tenant is sometimes used in the calculation of the Rental Assistance Payment. Therefore it is important to accurately obtain this information. If the tenant is determined to be a "low income" person based on the applicable HUD schedule, then income is a consideration in the calculation of the "base monthly rental for the displacement dwelling" and ultimately may affect the amount of rental payment due the tenant.

The term "base monthly rental for the displacement dwelling" (base rent) is the lesser of:

  1. The current rent and utilities of the displacement dwelling; or

  2. Thirty percent of gross household income, if the amount is classified as low income by the HUD Annual Survey of Income Limits; or

  3. The amount designated for shelter and utilities in certain welfare programs.

Once the base rent is known, then it can be subtracted from the lesser of the actual new rent plus utilities, or the rent plus utilities of the comparable replacement. The resulting difference is then multiplied by 42 (the payment is paid for a period of forty-two months) to yield the total amount of the Rental Assistance Payment.

See § 24.402 for additional detail and limitations.

Updated: 04/02/2013
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