HUD Handbook 4350.3 § 5-28
Calculating Tenant Contribution for “Double Occupancy” in Group Homes (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
HUD guidance — not codified law
In Force
Verified 9/24/2026 · Next check 10/1/2026
effective 9/24/2026FederalSection 8 Project-BasedOperative Text
HUD Handbook 4350.3 § 5-28
A. Double Occupancy
Some group homes for disabled residents provide units that may be shared by
unrelated single tenants. The calculations for tenant contribution and for the
assistance payment vary depending on whether the project is a Section 202/8 or
a Section 811.
B. Total Tenant Payment
In both Section 202/8 and Section 811 group homes, each tenant in a double
occupancy room is treated as a separate family in the calculation of TTP. Each
resident is entitled to any deductions he or she would receive if occupying a
single room, including the $400 elderly/disabled family deduction.
Example – TTP Calculation for Double Occupancy
Resident A:
Annual income $5,200
Elderly family deduction - $400
Medical expense deduction - $900
Annual adjusted income $3,900
Monthly adjusted income $325
($3,900/12 months)
30% of monthly adjusted income $98
10% of monthly gross income $43
Minimum rent $25
TTP for Resident A = $98
Resident B:
Annual income $3,600
Elderly family deduction - $400
Medical expense deduction - $2,480
Annual adjusted income $720
Monthly adjusted income $60
($720/12 months)
30% of monthly adjusted income $18
10% of monthly gross income $30
Minimum rent $25
TTP for Resident B = $30
C. Contract Rent and Assistance Payment in Section 202/8 Group Homes
1. In Section 202/8 group homes, the contract rent for a room shared by two
occupants is split between the two tenants.
2. The assistance payment for the Section 202/8 double occupancy room is
calculated separately for each tenant based on half of the contract rent for
the unit.
Example – Assistance Payment, Section 202/8 Double
Occupancy
Contract rent for the unit $800
Half of the contract rent for the unit $400
TTP for Tenant A = $98
Assistance payment for Tenant A is $400 less $98 = $302
TTP for Tenant B = $30
Assistance payment for Tenant B is $400 less $30 = $370
3. If the tenant rent for either tenant exceeds half of the contract rent, that
tenant’s rent will be capped at half of the contract rent. In the Section
202/8 double occupancy room, half of the contract rent is the maximum
rent one occupant can pay.
Example – Section 202/8 Double Occupancy
Tenant A has an increase in income changing the monthly adjusted
income to $1,500. 30% of $1,500 equals $450. Tenant A is no longer
eligible for assistance. Tenant A’s rent is capped at $400, which
represents the maximum Tenant A will pay.
Gross rent for unit $800
Half the contract rent for the unit $400
TTP for Tenant A $450
Assistance Payment for Tenant A -0-
Rent Tenant A will pay $400
4. Owner’s rent-calculation software must reflect the split-unit rent and
contain unit numbers that provide a distinction between tenants (e.g., unit
101A, 101B).
D. Operating Cost and Assistance Payment in Section 811 Group Homes
1. In a Section 811 group home, the operating cost for a room shared by two
occupants is split between the two tenants.
2. The assistance payment for the Section 811 double occupancy room is
calculated separately for each tenant based on half of the operating cost
for the unit.
3. In a Section 811 property, each tenant is certified separately and pays the
greater of 30% of monthly adjusted income, 10% of monthly annual
income, or the welfare rent.
4. In the Section 811 double occupancy unit, both occupants will pay the
calculated TTP amount even if it exceeds their portion of the operating
cost for the unit.
Example – Calculating the Assistance Payment for a Double Occupancy
Unit in a Section 811 Group Home
Operating cost for unit $310
Half of the operating cost for the unit $155
TTP Tenant A = $160
Assistance Payment for Tenant A $(5)
TTP Tenant B = $75
Assistance Payment for Tenant B $80
Although the Assistance Payment for Tenant A is
zero, the voucher must indicate that $5 over the
operating cost was collected for rent. This is
indicated by bracketing the ($5.)
5. Owner’s rent-calculation software must reflect the split-unit operating cost
and contain unit numbers that provide a distinction between tenants (e.g.,
unit 101A, 101B).
Example – Section 811 Total Tenant Payments
Operating cost for the unit $310
One half of operating cost $155
TTP Tenant A = $330
Assistance Payment for Tenant A ($175)
TTP Tenant B = $240
Assistance payment for Tenant B ($85)
E. Calculating Rent at Change in Occupancy
1. If there is a change in the number of individuals occupying the double
occupancy unit, the assistance payment for the whole unit may change.
2. In a Section 202/8 or a Section 811 PRAC double-occupancy room, the
rent and assistance payments are calculated as if each tenant occupied a
separate unit each with a rent equaling half of the contract rent or
operating cost for the unit. If one resident moves out, the TTP and
assistance payment calculations for the remaining resident remain the
same. The other half of the unit is treated like a vacant unit: there is no
assistance payment but the owner may be eligible for vacancy loss claims
for the vacated half of the unit.
Example – Section 202/8 Calculation at a Change in Occupancy
Contract Rent $800
Half of the contract rent $400
Tenant A Tenant Rent $98
Tenant B Tenant Rent $30
Tenant A moves out.
Assistance Payment for Tenant B is calculated using half of the contract rent = $400
less the Tenant Rent for Tenant B $30 = $370 housing assistance payment.
There is no HAP payment for the half of the unit vacated by Tenant A. It is vacant. But,
the owner may request a vacancy loss payment if appropriate.
Example – Section 811 Calculation at a Change in Occupancy
Operating Cost $310
Half of the operating cost $155
Tenant A Tenant Rent $160
Tenant B Tenant Rent $75
Tenant A moves out.
Assistance Payment for Tenant B is calculated using half of the operating cost = $155
less the Tenant Rent for Tenant B $75 = $80 housing assistance payment.
There is no Assistance Payment for the half of the unit vacated by Tenant A. It is
vacant. Even though Tenant A was paying more than half of the operating cost for the
unit at move-out, the owner may request a vacancy loss payment if all other vacancy
claim requirements have been met.Source: Legislative text reproduced verbatim
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Sep 24, 2026
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Related Rules
§ 888.111
§ 888.111 Fair market rents for existing housing: Applicability.
§ 888.201
§ 888.201 Purpose.
§ 888.202
§ 888.202 Manner of publication.