What Is Counted in Section 8 Housing As Income?
The Section 8 housing program subsidizes rent for low-income tenants. The tenant pays part of the rent and the Department of Housing and Urban Development, or HUD, pays the rest. Landlords must agree to participate in this program, and housing must pass a HUD inspection. Section 8 applicants must make less than the median income for the county where they live to qualify for the program.
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Earned Income
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If you are working, all of your wages are counted toward your Section 8 eligibility. If there is more than one adult living in your household, HUD also counts their income towards your Section 8 eligibility. Your earned income must be less than the income limits for the county where you reside, which is based on the median income of families living in that county. In most cases, HUD uses your annual income when determining your eligibility.
Other Income
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If you have any income from sources other than work, such as pensions or payments from other public assistance programs, these also count toward your Section 8 eligibility. Welfare income may be counted if you receive cash aid specifically for shelter costs. Investment income is counted separately from these types of income. Unlike other unearned income, investment income is considered an asset rather than income, and is therefore counted towards your asset limit for Section 8 eligibility purposes.
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Excluded Income
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Some income is not counted towards your Section 8 eligibility. If your children under the age of 18 work part-time, this income does not count. In addition, if you receive any income for taking care of foster children or as a reimbursement for a family member's medical expenses, that income does not count for Section 8 purposes. Finally, if a full-time aide lives in the household, her income does not count.
Adjusted Monthly Income
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If you qualify for Section 8 on the basis of your gross income, HUD then considers your adjusted monthly income --- the income that determines how much of your rent you must pay yourself. This income is your gross income minus certain deductions, such as those for your dependents and non-reimbursed medical expenses. Your rental obligation must not exceed 30 percent of your adjusted monthly income.
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