Yes No HUD determines rent rules and could require households to either… Pay a percentage of gross income that HUD would set with no upper limit 1. No Change: Household pays for housing under previous formula. 2. No Flat Rents: Household pays for housing under previous formula, except public housing flat rents are eliminated. 3. Tiered Rents: Households are divided into extremely low-income, very low-income, and low-income bands and agencies set a single rent level for all households in each band. 6. Agency’s Own Design: Housing agency designs its own rent policy and has it approved by HUD. 4. Stepped Rents: Households pay a share of the fair market rent (between 20% and 100%). The rent is based on how long the household has lived in HUD housing and goes up over time. 5. Gross Income Option: Household income would be calculated under a new formula that only counts 10% of the 2nd-highest earner’s income and 100% of all other members’ incomes. Household then pays the higher of 30% of gross income or a $75 minimum rent. Pay for housing under previous rent formula Is head/spouse/sole member 62 or older or a person with a disability? Housing agency can choose among six options: