Rent Subsidy and Family Share

Calculation of Subsidy and Family Share:

The family share is calculated by subtracting the amount of the housing assistance payment from the gross rent.

Example:
  $620 Payment Standard (maximum subsidy amount)
-$397 Maximum Housing Assistance (amount paid by housing authority to landlord)
= $223 Total Tenant Payment (family's share of monthly rent)

Please Note: In addition to your monthly rent payment, you are responsible for utility deposits and utility bills.

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Example #1
Gross Rent $500
Total Tenant Payment -$223
Housing Assistance Payment = $277
 
Example #2
Gross Rent $600
Total Tenant Payment -$223
Housing Assistance Payment = $377

In example #1, the PHA will pay $100.00 less per month to the owner than in example #2, even though the family's income is the same in both examples. The difference in the rent payment is because the unit in example #2 had a higher rent to owner.

Determine Adjusted Income
After determining the total annual income for the household, the PHA makes any necessary adjustments to the annual income in accordance with HUD regulations. If the family qualifies, there are five (5) possible deductions and allowances. HUD approved deductions and allowable expenses are subtracted from the annual income to get the family's adjusted annual income.

Deductions and HUD Allowable Expenses:
Medical
Childcare
Dependents

Dependents:
A $480.00 deduction is made for all minors under the age of 18, and for family members 18 and over who are full time students or a person with a disability, other than the Head or Spouse.

Elderly/Disability Allowance:
A $400.00 household deduction is made for families whose Head, Spouse, or Sole Member is 62 or over, or is a person with a Disability.

PHA Determines Final Eligibility:
Lets examine how the total amount of the rent for the unit (Rent to Owner) can affect the amount of the family's rent payment to the owner.

Example
Gross Rent $620
Total Tenant Payment -$223
Housing Assistance Payment = $397

Example #1
Gross Rent $700
Total Tenant Payment -$397
Housing Assistance Payment = $404

The family must pay the difference between the maximum Housing Assistance Payment and the Rent to the Owner. 

Maximum Rent at Initial Occupancy:
At the time a family initially receives tenant-based assistance for occupancy of a dwelling unit, if the gross rent for the unit is greater than the Payment Standard for the family, the family share cannot exceed 40% of the family's monthly adjust income.

The family share is the gross rent minus the Housing Assistance Payment.

The family may ask the PHA to assist the family in negotiating a lower rent to the owner.

Rent Reasonableness:
At the time of inspection, the inspector will also be evaluating the rent reasonableness of the housing unit. The proposed rent will be compared to the rent for other units on the market of similar size, features, and amenities.

Although there are no HUD "ceilings" on the rents charged in the Voucher Program, the rents must still be reasonable and comparable to those charged for similar unassisted units. The PHA bases the determination of reasonableness and comparability on the unit inspection report and rental market information.

PHA Disapproval of Tenancy;
If the family chooses a unit with gross rent greater than the payment standard and the family share exceeds 40% of their monthly adjusted income, the PHA is NOT PERMITTED to approve tenancy.

Unless a live-in-aide resides with a family, the family unit size for any family consisting of a single person must be either a zero-or one-bedroom unit, as determined under the PHA Subsidy standards.

PHA Policy
The PHA will assign one bedroom for each two persons within the household, except in the following circumstances:

• Head of Household is allocated a separate bedroom.
• Persons of the opposite sex (other than spouses) will be allocated separate bedrooms.
• Live-in aides will be allocated a separate bedroom.
• Single person families will be allocated one bedroom.

The PHA will reference the following chart in determining the appropriate voucher size for a family:

• Voucher Size 1 Bedroom  Persons in Household (Minimum-Maximum) 1-2
• Voucher Size 2 Bedrooms  Persons in Household (Minimum-Maximum) 2-4
• Voucher Size 3 Bedrooms  Persons in Household (Minimum-Maximum) 3-6
• Voucher Size 4 Bedrooms  Persons in Household (Minimum-Maximum) 4-8
• Voucher Size 5 Bedrooms  Persons in Household (Minimum-Maximum) 6-10