24 C.F.R. § 960.503
§ 960.503 Occupancy by over-income families. (24 CFR Part 960)
Operative Text
A PHA that owns or operates fewer than two hundred fifty (250) public housing units, may lease a unit in a public housing development to an over-income family (a family whose annual income exceeds the limit for a low income family at the time of initial occupancy), in accordance with its PHA annual plan (or supporting documents), if all the following conditions are satisfied: (a) There are no eligible low income families on the PHA waiting list or applying for public housing assistance when the unit is leased to an over-income family; (b) The PHA has publicized availability of the unit for rental to eligible low income families, including publishing public notice of such availability in a newspaper of general circulation in the jurisdiction at least thirty days before offering the unit to an over-income family; (c) The over-income family rents the unit on a month-to-month basis for a rent that is not less than the PHA's cost to operate the unit; (d) The lease to the over-income family provides that the family agrees to vacate the unit when needed for rental to an eligible family; and (e) The PHA gives the over-income family at least thirty days notice to vacate the unit when the unit is needed for rental to an eligible family.
Under 24 CFR Part 960 § 960.503, a Public Housing Authority (PHA) that operates fewer than 250 public housing units is permitted, under specific conditions, to rent a unit to a family whose income exceeds the low-income eligibility threshold. This is only allowed when no eligible low-income families are on the waiting list, the unit has been publicly advertised for at least 30 days, and the over-income family pays at least the PHA's full operating cost for the unit on a month-to-month basis. The arrangement is explicitly temporary: the over-income family must agree in advance to vacate and is entitled to at least 30 days' notice if an eligible family needs the unit.
Plain English — not legal advice.
Smaller PHAs covered by 24 CFR Part 960 § 960.503 — those with fewer than 250 units — that consider leasing to an over-income family generally document that the waiting list is clear of eligible applicants, publish a public notice in a newspaper of general circulation for at least 30 days before offering the unit, and set rent at no less than the full operating cost of the unit. Compliant operators structure the lease on a month-to-month basis and include an explicit clause requiring the over-income family to vacate when an eligible family needs the unit. When that situation arises, operators consistent with this provision provide the over-income family written notice of at least 30 days and ensure the process aligns with the PHA's annual plan or its supporting documents.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
If you are an over-income family renting under 24 CFR Part 960 § 960.503, your lease should reflect the month-to-month nature of the arrangement and include a clause acknowledging that you may be asked to vacate when an eligible low-income family needs the unit; the provision entitles you to at least 30 days' notice before you are required to leave. If you are a low-income family seeking public housing, this provision is relevant because a PHA may only place an over-income family in a unit after confirming no eligible applicants are on the waiting list and after a 30-day public notice period. Tenants who believe a PHA has not followed these requirements can raise the issue with the local PHA, file a complaint with HUD, or reach out to a tenant-rights organization familiar with public housing regulations for general information about available options.
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 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.