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Income Deductions Overview - Section 8

Your Adjusted Monthly Income is used to determine the Section 8 Rent you must pay. Your Adjusted Monthly Income is calculated by dividing your adjusted annual income by 12.

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, to the extent the sum exceeds 3% of annual Gross Non-Excluded Income:

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

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.)

NOTE: A work incentive for families that include certain individuals with disabilities in the Tenant-Based Voucher Program is available. It allows families to have 100% of their increased earnings excluded for one year, and 50% of their increased earnings excluded during an additional year, when calculating their Section 8 rent. See the Earned Income Disregard - Section 8 topic for additional information.

Source:

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

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Section 8 Housing Overview

Federal Rent Assistance

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