How My Rent is Determined

An income-based rent is a tenant rent that is based on the family’s income and the PHA’s rent policies for determination of such rent. A PHA’s rent policies may specify that the PHA will use a percentage of family income or some other reasonable system. In no case, may the income-based rent exceed the total tenant payment (TTP) for the family minus any applicable utility allowance for tenant-paid utilities.

Flat rents are based on the market rent charged for comparable units in the private unassisted rental market. It is equal to the estimated rent for which the PHA could promptly lease the unit. The flat rent is designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient.

The earned income disallowance (EID) is an incentive to encourage current public housing residents to become self-sufficient (no longer dependent on government aid).  This incentive allows qualified tenants to not count a portion of income for a total of 12 months.  In order to qualify for EID one of the following events must occur while a tenant lives in public housing (it could not have happened prior to move in.)

• Employment of a family member who was previously unemployed for one or more years prior to employment.
• Increased earnings by a family member during participation in any economic self-sufficiency or other training program.
• New employment or increased earnings of a family member during or within 6 months after receiving assistance, benefits, or services under any state program for temporary assistance (TANF, Welfare-to-Work).

Income is verified through the use of the Enterprise Income Verification system and third party verifications.

Rent is based upon your income.  HUD has established a formula for determining the exact amount of your rent, however, rent is typically 30% of your annual gross income minus a HUD approved utility allowance and any HUD approved deductions.  However, there is a $50 minimum rent.

Formula:

(Annual gross income – HUD approved deduction) / 12 x 30%-HUD approved utility allowance=monthly rent