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Adjusted Monthly Income - Section 8

Calculating your Rent: Once your financial eligibility for Section 8 assistance has been established using your gross non-excluded income, your Adjusted Monthly Income is used to compute the Section 8 Rent that you have to pay.

WorkWORLD calculates your Adjusted Monthly Income by:

1. Determining the total annual gross income of your family. WorkWORLD does this by adding together the unearned income, earned income, and income from assets of all household members.

2. Subtracting income exclusions to get the annual Gross Non-Excluded Income

3. Subtracting from the annual Gross Non-Excluded Income the Mandatory Deductions listed below to get the Annual Adjusted Income.

4. Dividing by 12 to get the Adjusted Monthly Income. (Total Tenant Payment is generally 30% of the Adjusted Monthly Income.)

Mandatory Deductions. To determine adjusted annual income, the following amounts are deducted from annual Gross Non-Excluded Income:

·      $480 for each dependent – that is, for each member of the family (except foster children and foster adults) other than the family head or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student;

·      $400 for any elderly or disabled family – that is, for any family whose head, spouse, or sole member is a person with disabilities or is at least 62 years of age. It may include two or more persons with disabilities living together, or one or more persons with disabilities living with one or more live-in aides.

·      The sum of the following two items, to the extent the sum exceeds 3% of annual Gross Non-Excluded Income;

1. Unreimbursed medical expenses of all members of an elderly or disabled family; and

NOTE: If you participate in the Medicare Prescription Drug Program, you should use the cost of the drugs without program benefits as the amount of your expenses, not your actual out-of-pocket expenses. (See Section 8 Rent and the Medicare Prescription Drug Program for details.)

2. Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed, but this allowance may not exceed the earned income received by family members who are 18 years of age or older who are able to work because of such attendant care or auxiliary apparatus; and

·      Any reasonable childcare expenses necessary to enable a member of the family to be employed or to further his or her education. (Note that a deduction for childcare needed to enable a family member to work can be no more than the amount earned. WorkWORLD automatically takes this rule into account.)

See Also:

Family Rent to Owner (Tenant-Based Voucher Program)

Tenant Rent (All other programs)

Source:

Code of Federal Regulations (CFR): 24CFR5.611

Back to:

Section 8 Housing Overview

Federal Rent Assistance

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