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Tenant Rent

"Tenant Rent" is a term used in all Section 8 programs other than the Housing Choice Tenant-Based Voucher program. Tenant Rent is the monthly amount that a family must pay the owner of the rental unit. (In the Tenant-Based Voucher program, the amount the family must pay is called the Family Rent to Owner.)

Tenant rent is: The Total Tenant Payment amount minus any Utility Allowance.

Total Tenant Payment: The highest of the following amounts, rounded to the nearest dollar:

(1) 30% of your family's adjusted monthly income;

(2) 10% of your family's monthly Gross Non-Excluded Income (the total gross annual amount after subtracting income exclusions and dividing by 12);

(3) If the family is receiving payments for welfare assistance from a public agency and a part of those payments, adjusted in accordance with the family's actual housing costs, is specifically designated by such agency to meet the family's housing costs, the portion of those payments which is so designated; or

(4) The minimum rent set by your Public Housing Agency (PHA).

Utility Allowance

If the cost of utilities (except telephone) is not included in the tenant rent and is, therefore, your responsibility, then the amount you must pay in Tenant Rent is reduced by an estimated amount.

The PHA or HUD estimated amount is, according to 24CFR5.603, "the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment."

NOTE: The Code of Federal Regulations (CFR) is available at: http://www.gpoaccess.gov/cfr/.

Note that for the Tenant-Based Voucher program, the Utility Allowance is defined more extensively, although the meaning seems substantially the same. For details, see: Utility Allowance as used in calculating the Housing Assistance Payment for Tenant-Based Vouchers.

Source:

Code of Federal Regulations (CFR): 24CFR5.634

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Section 8 Housing Overview

Federal Rent Assistance

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