Sunday, March 9, 2014

Who Decides How Much Rent A Single Parent Is Supposed To Pay For Low Income Housing

Single parent households pay 30 percent of their income toward rent.


The U.S. Department of Housing and Urban Development has several affordable housing programs for income-qualified households. Single-parent families qualify for low-income housing if their income does not exceed the low-income limit level. HUD has established the methods to determine how much rent is owed every monthly. Low-income housing allows single-parent households to pay 30 percent of their income toward rent. The housing authority is responsible for calculating the family's rent.


HUD's Low Income Limit Level


HUD has determined the income limit levels for every county in the United States. These income limit levels are based on each area's median income, or the average household income for each county. Since every county has varying average household incomes, some areas may have higher income limits than others. Low-income housing programs typically accept families with income at or below the low-income limit level. The low-income limit level is 80 percent of the area median income. The family size also determines which income limit level you fall into. The more family members in your household, the higher the income you can make and still qualify for low-income housing.


Fair Market Rent


HUD established the fair market rent (FMR) for each county as well. The FMR sets the standard for acceptable low-income rental rates as the 40th percentile of gross rents for standard rental housing occupied by recent movers in a local housing market. Low-income families are not allowed to live in rental housing where the rent exceeds the FMR. This ensures that the tenant can afford her portion of the rent and that low-income housing expenses are appropriate when using taxpayer dollars to support affordable housing programs.


Calculating Tenant Rent


The single parent's annual income also determines how much rent is owed every month. There are certain allowances provided to the family that reduces the income before the tenant rent is determined. A $480 allowance is given for every dependent household member. Dependents include minors, people with disabilities or full-time students. Child-care expenses are also deducted from the annualized income. The income minus all the allowances is multiplied by 30 percent to determine the tenant's rent. You divide this number by 12 to get the monthly rent amount.


Other Rent Determinations


Single parents must meet additional requirements that will determine their rent amount. Every household member must be a U.S. citizen or eligible non-citizen for the family to receive the maximum subsidy amount. If any household member is determined ineligible due to citizenship problems, the subsidy amount will be prorated to include only the eligible family members. This will increase the amount of rent the single parent will pay on a monthly basis. Some low-income housing buildings require tenants to pay all or some of the utilities. These families are provided a utility allowance, which is an estimated average of normal utility consumption. This amount is deducted from the annual income.








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