The Income and Assets Test for Section 8 Housing

By Jessica Steinberg, Esq.

Jessica Steinberg, Esq., is a staff attorney and Equal Justice Works fellow at the Legal Aid Society of San Mateo County.

Lump-sum additions to a family’s assets, including inheritance, insurance payments, capital gains, and settlement for personal or property loss, are excluded from the calculation of the family’s annual income.

So that you get the gist of what you will read below, simply put if you inherit money or receive personal injury compensation of say $250,000, and let’s say the bank is paying you 3% simple interest, the interest you will earn in a 12-month period will be about $7,500. Divide $7,500 by 12-months = $625 per month that HUD will consider as income for the purposes of rent payments. If you also have other regular income like Social Security or Service-Connected Disability lets say it is $1,100 per month, your total monthly income would be figured as $1,725 per month. HUD takes about 30% of your total income, so $1,725 x 30% or .30 = a rent payment of $517.50 per month. Be sure to check with your local HUD City or County Office for income limitations to be eligible for HUD-VASH or regular HUD Choice Vouchers or Project-Based HUD.

http://www.canhr.org/publications/newsletters/NetNews/Feature_Article/NN_2004Q4.html

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