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: