HUD Handbook 4350.3 § 5-25

Rent Supplement Properties

        A.       Total Tenant Payment (TTP)

                The Total Tenant Payment (TTP) is the amount a tenant is expected to contribute
                for rent and utilities. TTP for Section 8, PAC, PRAC, RAP, and Rent Supplement
                properties is based on the family’s income. The formulas for calculating TTP are
                shown in Figure 5-6. Exhibit 5-8 also shows the formulas for calculating tenant
                contributions for all assisted-housing programs.

B.       Unit Rent

                 1.       The contract rent (basic rent in the Section 236 program) represents the
                          amount of rent an owner is entitled to collect to operate and maintain the
                          property. It is HUD-approved. For Section 202 and 811 PRACS, the
                          contract rent is the operating rent *(gross rent)* minus the utility
                          allowance.

                 2.       Projects in which the tenant pays all or some utilities have HUD-approved
                          utility allowances that reflect an estimated average amount tenants will
                          pay for utilities assuming normal consumption.

        C.       Timeframe for Calculating Rent

                Owners calculate rent at three points in time.

                 1.       Owners must calculate rent prior to occupancy by an applicant.

                 2.       Owners must calculate rent as part of an annual recertification. Refer to
                          Chapter 7, Section 1 for information on annual recertification of income.

                 3.       When assistance is provided through Section 8, PAC, PRAC, RAP, or
                          Rent Supplement, owners must recalculate rent if a tenant reports a
                          change in income, allowances, or family composition. Refer to Chapter 7,
                          Section 2 for information on interim recertifications of income.

Figure 5-6: Total Tenant Payment Formulas

Section 8, PAC, PRAC, and RAP

                TTP is the greater of the following:
                  30% of monthly adjusted income;
                  10% of monthly gross income;
                  Welfare rent (welfare recipients in as-paid localities only); or
                  The $25 minimum rent (Section 8 only).
                Section 8, RAP, and PAC programs may admit an applicant only if the TTP is less
                 than the gross rent.
                In PRAC properties, the TTP may exceed the PRAC operating rent.

                                            Rent Supplement

                TTP is the greater of the following:
                  30% of monthly adjusted income; or
                  30% of gross rent.
                At move-in or initial certification, the amount of Rent Supplement assistance may be
                 no less than 10% of the gross rent or the tenant is not eligible.