Rent Calculation Formula

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The Housing Choice Voucher Program uses a Payment Standard.

The family’s portion of rent plus a utility allowance cannot exceed 40% of the adjusted income on a "new to the program" family lease up or a participant family’s move to a new unit.

The Housing Agency’s utility allowance is now included in the calculations. Gross rent equals the contract rent plus the utility allowance. Copies of the utility allowance are included in the Movers packet that is given to the participant with the transfer to move.

The family’s Total Tenant Payment (TTP) is the highest of 30% adjusted monthly income, 10% total monthly income or 25. The family’s TTP is indicated on the voucher.

Subtract the TTP from the lesser of gross rent or the regular payment standard to obtain the housing subsidy amount.

The difference between the contract rent and the subsidy is the amount the family pays.

SAMPLE CALCULATION

(based on a 2 bedroom unit in the city area)

Gross Rent $700 contract rent + $100 utility allowance	$800.00
Payment Standard	$780.00

(lessor of gross rent or the payment standard)	$780.00

Minus the TTP	$200.00

Equals the Subsidy Amount	$580.00

Contract Rent	$700.00
Minus the Subsidy Amount	$580.00
Equals the Family’s Rent	$120.00