HUD Handbook 4350.3 § 5-31

Procedures for Calculating Rent (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)

HUD guidance — not codified law
In Force
Verified 11/9/2026 · Next check 11/16/2026
effective 9/24/2026FederalSection 8 HCV

Operative Text

HUD Handbook 4350.3 § 5-31
A.       Owners must calculate tenant rent payments electronically using on-site software
                 or a service provider. Data used to determine the rent are based on information
                 certified as accurate by the family and independently verified.

        B.       The owner’s computer software calculates rent based on the appropriate
                 formulas for the tenant’s unit and produces a printed copy of the HUD-50059 to
                 be signed by the tenant and the owner. The owner must produce a printed report
                 in an easily read and understood format that contains all of the information used
                 to calculate the tenant’s rent.

        C.       The tenant and the owner sign a copy of the report containing a statement
                 certifying the accuracy of the information. The certification statements are
                 provided on the form HUD-50059 in Appendix 7-B.

        D.       The owner must give a copy of the printed HUD-50059 with the required
                 signatures to the tenant and place another copy in the tenant file.

        E.       The HUD-50059 is then transmitted electronically to TRACS either directly or
                 through the Contract Administrator.

        F.       In all cases, the computer generated HUD-50059 must include the required
                 tenant signatures and owner signatures prior to submitting the data to the
                 Contract Administrator or HUD. The owner may consider extenuating
                 circumstances when an adult family member is not available to sign the HUD-
                 50059, for example, an adult serving in the military, students away at college,
                 adults who are hospitalized for an extended period of time, or a family member
                 who is permanently confined to a nursing home or hospital. The owner must
                 document the file why the signature(s) was not obtained and, if applicable, when
                 the signature(s) will be obtained.
Source: Legislative text reproduced verbatim
Plain English

HUD Handbook 4350.3 REV-1 CHG-4 § 5-31 establishes that rent calculations for covered housing must be performed electronically using approved software or a service provider, drawing on family-certified and independently verified data. The results are recorded on form HUD-50059, which both the tenant and owner sign to certify accuracy, and the completed form is transmitted electronically to the TRACS system. When an adult household member cannot sign due to extenuating circumstances—such as military service, hospitalization, or nursing home confinement—the owner must document the reason and, where applicable, note when the signature will be obtained.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 25, 2026

Plain English — not legal advice.

For Property Managers

Under HUD Handbook 4350.3 REV-1 CHG-4 § 5-31, compliant operators use approved on-site software or a third-party service provider to calculate rents electronically, ensuring the underlying data has been certified by the family and independently verified. Operators produce a printed HUD-50059 in a clear, readable format, obtain the required tenant and owner signatures, provide a signed copy to the tenant, and retain another in the tenant file before transmitting the form to TRACS via the Contract Administrator or directly to HUD. When an adult household member is unavailable to sign, operators document the specific extenuating circumstance in the file and record the anticipated date for obtaining the missing signature.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

HUD Handbook 4350.3 REV-1 CHG-4 § 5-31 gives tenants the right to receive a printed, signed copy of the HUD-50059 form that shows all the information used to calculate their rent, allowing them to review the figures for accuracy. If a tenant believes the rent calculation is incorrect or that a required copy was not provided, they may raise this as a concern with the property's Contract Administrator or file a complaint with the U.S. Department of Housing and Urban Development. Tenant-rights organizations familiar with HUD-assisted housing can help explain what the form should contain and what options are generally available when procedural requirements under § 5-31 appear not to have been followed.

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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Current
Sep 24, 2026
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Related Rules

§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 0770-01-05-.05
CONFLICT OF INTEREST.

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