HUD HCV Guidebook § 2.1

Total tenant payment (TTP) is the minimum amount the family will pay toward rent and utilities and is
calculated using a statutory formula and family income information (see the Income Determination
chapter). To calculate TTP, PHAs convert annual adjusted income and annual income to monthly
adjusted income and monthly income, respectively, by dividing the annual figures by 12.

The TTP is the greater of:
• 30 percent of monthly adjusted income;
• 10 percent of monthly income;

1
    24 CFR 982.301(b)(2) and(b)(3)
2
    24 CFR 5.628

•     welfare rent from a public agency (i.e., the part of welfare specifically designated to meet the
      family’s actual housing costs, which is used in as-paid states only); or
•     the PHA minimum rent (PHA determined, see Section 2.2 - Minimum Rent).

The highest of these four amounts (or three amounts, in non-as-paid states) is the family’s TTP; the
family will pay at least this amount toward the unit’s gross rent (rent plus utilities). The family share
is the portion of rent and utilities paid by the family. The family share will be higher than the TTP if
the family’s rent is prorated or the family leases a unit with a gross rent above the PHA’s payment
standard. In the following examples, different scenarios of TTP calculations are provided. Example 1
shows a scenario where the TTP is 30 percent of monthly adjusted income. Example 2 shows a
scenario where the TTP is the minimum rent. Example 3 shows a scenario where the welfare rent is
applicable.

            Example 1: Calculating Total Tenant Payment – Monthly Adjusted Income
            30% of monthly adjusted income           $700 x .30 = $210
            10% of monthly income                    $740 x .10 = $74
            Welfare rent (in as-is states)           N/A
            PHA minimum rent                         $50
            Total Tenant Payment (TTP)               $210
               The tenant will never pay less than the TTP regardless of the unit selected

            Example 2: Calculating Total Tenant Payment – Minimum Rent
            30% of monthly adjusted income           $134 x .30 = $40
            10% of monthly income                    $174 x .10 = $17
            Welfare rent (in as-is states)           N/A
            PHA minimum rent                         $50
            Total Tenant Payment (TTP)               $50
               The tenant will never pay less than the TTP regardless of the unit selected

            Example 3: Calculating Total Tenant Payment – Welfare Rent
            30% of monthly adjusted income           $134 x .30 = $40
            10% of monthly income                    $174 x .10 = $17
            Welfare rent (in as-is states)           $65
            PHA minimum rent                         $50
            Total Tenant Payment (TTP)               $65
               The tenant will never pay less than the TTP regardless of the unit selected