Hud Rent Calculation Worksheet

HUD Rent Calculation Worksheet

Estimate Housing Choice Voucher (Section 8) Total Tenant Payment

(Only for elderly/disabled households)

Qualifies for a $400 flat deduction and medical expense considerations.

Calculation Results

Total Deductions:
$0.00

Adjusted Annual Income:
$0.00

Estimated Monthly Rent (TTP):
$0.00

This is the higher of 30% of monthly adjusted income or 10% of monthly gross income.

How is HUD Rent Calculated?

The U.S. Department of Housing and Urban Development (HUD) uses a standardized formula to determine how much a family should contribute toward their rent when participating in programs like the Section 8 Housing Choice Voucher (HCV) program. This contribution is called the Total Tenant Payment (TTP).

The Formula Breakdown

Your rent is not simply 30% of what you earn. HUD allows for several deductions to make housing more affordable for families with specific needs. The TTP is generally the highest of the following four amounts:

• 30% of Monthly Adjusted Income: Your gross income minus HUD-approved deductions.
• 10% of Monthly Gross Income: Your total income before any deductions are applied.
• Welfare Rent: The portion of welfare assistance specifically designated for housing (if applicable).
• Minimum Rent: A minimum amount set by the local Public Housing Agency (PHA), typically between $0 and $50.

Standard HUD Deductions

To reach your "Adjusted Income," HUD subtracts the following from your gross annual income:

1. Dependent Allowance: $480 for each family member who is under 18, a person with disabilities, or a full-time student (excluding the head of household or spouse).
2. Elderly/Disabled Allowance: A single $400 deduction for any family whose head or spouse is at least 62 years of age or a person with disabilities.
3. Childcare Expenses: Reasonable expenses for the care of children under age 13 that enable a family member to work or go to school.
4. Medical Expenses: For elderly or disabled families only, unreimbursed medical expenses that exceed 3% of the annual gross income.

Example Calculation

Scenario: A single parent with two children (dependents) earns $25,000 annually. They pay $2,000 in childcare yearly.

• Gross Annual Income: $25,000
• Dependent Deduction: $480 x 2 = $960
• Childcare Deduction: $2,000
• Total Deductions: $2,960
• Adjusted Income: $22,040 ($25,000 – $2,960)
• Monthly Adjusted Income: $1,836.67
• 30% of Monthly Adjusted: $551.00
• 10% of Monthly Gross: $208.33
• Estimated Rent (TTP): $551.00