What is the 40% initial rent burden rule?

When a voucher holder moves into a new rental unit where rent plus utility allowance exceeds the PHA Payment Standard, the family's total rent share cannot exceed 40% of their monthly adjusted income at initial lease-up.

What mandatory deductions does HUD allow from annual income?

HUD mandates standard statutory deductions: $480 per dependent child under 18 or full-time student, $400 per elderly (62+) or disabled household, and allowable unreimbursed medical or childcare expenses.

USAUpdated for 2026Real Estate

HUD Section 8 Housing Choice Voucher & Tenant Rent Calculator 2026

Calculate Total Tenant Payment (TTP - 30% of adjusted monthly income), Housing Assistance Payment (HAP) subsidy, and out-of-pocket tenant rent share under HUD Section 8 voucher rules.

Housing & Residential Family & Children Benefits & Allowances

Calculated Result

Tenant Monthly Out-of-Pocket Rent Share

$576

Calculator Inputs

Annual Household Gross Income

Quick select:

Number of Dependent Children ($480 deduction each)

children

Quick select:

PHA Voucher Payment Standard (Fair Market Rent)

Quick select:

Actual Unit Rent + Estimated Utility Allowance

Quick select:

Tenant Monthly Out-of-Pocket Rent Share

$576

HUD / PHA Monthly Housing Subsidy (HAP)

$1,174

Tenant Rent Burden on Adjusted Income

30 %

Statutory Total Tenant Payment (TTP 30%)

$576

Household Monthly Adjusted Income

$1,920

Annual HUD Mandatory Deductions

$960

Under statutory HUD rules, Total Tenant Payment (TTP) is the highest of: 30% of monthly adjusted income, 10% of monthly gross income, or the PHA minimum rent ($50). When gross rent exceeds the PHA payment standard, tenant pays the difference up to 40% initial rent burden.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: United States Housing Act of 1937 (42 U.S.C. § 1437f & 24 CFR Part 982 - Section 8 Housing Choice Voucher Program)Last Verified: 2026-09-04

Calculation Methodology

Monthly Adjusted Income = (Annual Gross Income - ($480 * Dependent Children) - Elderly/Disability Deductions) / 12. TTP = max(50, Monthly Adjusted Income * 30%, Monthly Gross Income * 10%). Housing Authority Subsidy (HAP) = min(Gross Rent, Payment Standard) - TTP. Tenant Rent Share = Gross Rent - HAP.

Frequently Asked Questions

Tenants generally pay 30% of their monthly adjusted income (after mandatory HUD deductions like $480 per child) toward rent and utilities. The local Public Housing Authority (PHA) pays the remaining balance directly to the landlord up to the Fair Market Rent / Payment Standard.

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USA

HUD Section 8 Housing Choice Voucher & Tenant Rent Calculator 2026

Calculator Inputs

Calculation Methodology

Frequently Asked Questions

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