What Income Is Excluded From Section 8?

There is an income limit for section 8 so that people can get a subsidy from this law. The important and most asked questions about what income is excluded from the program. Let’s know how we can get the house.

What Income is Excluded From Section 8?

The Housing Program provides help for those who have low income and provides houses by the U.S Housing Department of Urban Development (HUD). This is a very helpful program for those who want to get a house for their self and families. There are some requirements and processes that everyone can’t get easily because of their requirement so here you will find which income is required and what income is not accepted.

Supplemental Security Income (SSI)

Supplemental Security Income is excluded because this program supports disabled and elder people.

Social Security Benefits

SSB is also not included in the housing program because this is for retired and disabled people and is considered a form of government assistance.

Temporary Assistance for Needy Families

TANF is for welfare for poor families with their children therefore not under income and added from section 8.

Child Support

Some payments are granted by the government for children’s support and their health so not included­.

Insurance Payments

Health and accident insurance is not proper income and use for health and accident so no included.

• Local employment training programs (LETP) Because it is for individuals and it is a skill for employment.
• Student’s aids: mostly government and organizations paying students to continue study is added
• HUD: The HUD training program amount is also separate.
• Aids: Any aide for family help to buy food and basic needs.

Lump Sum

Inheritances and family assets are also not included because they play a guardian role to protect family assets in difficult situations.

Foreigner:

Foreigner government payment is not part of the program.

Armed payment

An armed person has a different income and different benefits.

Other sources

The payment that comes for a specific purpose like a Scholarship that is granted for education purposes also not added.

EITC

: (EARNED Income Tax Credit) is for low-income families so not Included.

Foster Care Payment

This payment is for children cared for.

Energy Assistance

The Energy Assistance payment is not added because this is for lower-income families.

How Is Tenant Rent Determined?

Income Assessment: Earning from employment, social security, and pensions which are not included.

Deductions

Medical expenses, elderly or family disability, and child care costs are deducted from income, and the remaining payment is included

Tenant Payment Standard (TPS):

TPS sets an area-wise payment and subsidizes for some areas so it depends on their area

Calculating Tenant Rent:

The tenant’s rent is typically 30% of their adjusted income or the difference between the TPS and 30% of their adjusted income, whichever is lower

Tenant Contribution

It is area-wise and program-wise so you can consult with your local housing authority and get specific information according to the area and program.

Rent Policies Comparison with Other HUD Programs?

Income and rent policies in HUD (U.S. Department of Housing and Urban Development) programs can vary significantly depending on the specific program’s goals and target populations. Here’s a comparison of income and rent policies between two major HUD programs: Section 8 and Public Housing.

Section 8 Housing Choice Voucher Program

Income Calculation

TTP formula is used by Section 8 where 30% of the adjusted income for rent while another income source will be considered also.

Rent Flexibility

Tenants can select a private rental market and get a subsidy if meet program requirements.

Income Reporting

Tenants must update their income according to the change because it will affect their rent.

Income Calculation

Public Housing follows a different rent calculation method, typically setting rent at 30% of a family’s monthly adjusted income or a minimum rent.

Rent Structure

The rent structure is on actual income base from the housing authority

Housing Authority Management

Public Housing units are owned and managed by local housing authorities, whereas the program tenants rent from private landlords with subsidies.

Utility Allowances

In both programs, utility allowances are factored into the rent calculation to account for tenant utility expenses.

Frequently Ask Questions

Is Social Security income excluded from the housing program calculations?

Yes, because considered a federal benefit and is not counted as part of your annual income.

Are child support payments counted as income for Section 8?

No, because it is a separate source of support.

Do unemployment benefits impact eligibility?

Unemployment benefits are usually considered as part of your income, and they may affect your eligibility or the amount of assistance you receive. However, the specific rules can vary by location, so check with your local housing authority for precise guidance.

Is income from a part-time job not Included in This Housing Program calculations?

Part-time job income is considered in the calculation eligibility. However, some deductions and allowances may reduce their impact on your overall income assessment.

Do cash gifts or financial assistance from family members count as income?

Cash gifts and financial assistance from family members are generally counted as income unless they are specifically designated as gifts and not loans. If they are considered gifts, they may still be subject to certain limitations.