24 C.F.R. § 93.51
§ 93.51 Formula factors. (24 CFR Part 93)
Operative Text
(a) Need factor one. The ratio of the shortage of standard rental units both affordable and available to extremely low-income renter households in the State to the aggregate shortage of standard rental units both affordable and available to extremely low-income renter households in all the States. (b) Need factor two. The ratio of the shortage of standard rental units both affordable and available to very low-income renter households in the State to the aggregate shortage of standard rental units both affordable and available to very low-income renter households in all the States. (c) Need factor three. The ratio of: (1) Extremely low-income renter households in the State living with either incomplete kitchen or plumbing facilities, more than one person per room, or paying more than 50 percent of income for housing costs, to (2) The aggregate number of extremely low-income renter households living with either incomplete kitchen or plumbing facilities, more than one person per room, or paying more than 50 percent of income for housing costs in all the States. (d) Need factor four. The ratio of very low-income renter households in the State paying more than 50 percent of income on rent relative to the aggregate number of very low-income renter households paying more than 50 percent of income on rent in all the States. (e) Construction cost factor. The resulting sum calculated from the factors described in paragraphs (a) through (d) of this section shall be multiplied by the relative cost of construction in the state. For purposes of calculating this factor, the term “cost of construction”: (1) Means the cost of construction or building rehabilitation in the State relative to the national cost of construction or building rehabilitation; and (2) Is calculated so that values higher than 1.0 indicate that the State's construction costs are higher than the national average, a value of 1.0 indicates that the State's construction costs are exactly the same as the national average, and values lower than 1.0 indicate that the State's cost of construction are lower than the national average.
Section 93.51 establishes the mathematical formula that determines how federal Housing Trust Fund allocations are distributed among states. The formula combines four "need factors" — each measuring a state's share of a national housing shortage or burden affecting extremely low-income and very low-income renter households — and then multiplies the sum of those factors by a construction cost index that reflects whether building in that state is more or less expensive than the national average. States with larger proportional housing shortages, more severely cost-burdened renters, and higher construction costs receive a larger share of available funds under this rule.
Plain English — not legal advice.
Property owners and developers working with Housing Trust Fund projects under 24 CFR Part 93 § 93.51 should understand that the amount of HTF funding a state receives is driven by this formula, which means available funding pools vary by state and can shift as national housing data is updated. Operators pursuing HTF-assisted projects generally track their state housing finance agency's annual allocation announcements, since those figures flow directly from the § 93.51 calculation. Understanding that construction cost indexing is built into the formula helps explain why per-unit subsidy levels may differ across state programs funded through this source.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For renters, 24 CFR Part 93 § 93.51 is significant because it shapes how much federal Housing Trust Fund money flows into a given state to support affordable housing for extremely low-income and very low-income households. The formula counts conditions like severe overcrowding, incomplete kitchen or plumbing facilities, and paying more than half of income on housing costs — meaning the lived experiences of renters directly influence a state's funding share. Tenants who want to understand how HTF resources are allocated in their state can contact their state housing finance agency or a local tenant-rights organization for information on programs funded through this formula.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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