Does a minor dependent’s income affect a HUD resident’s rent?

Program type:

• Income-based programs: In programs like Section 8 vouchers and public housing, which base rent on household income, earned income from any household member, including minors, typically counts towards the total income used to calculate rent. There are exceptions:
• Earned Income Disregard (EID): Some programs offer an EID for a set period (often one year) after a household member with disabilities starts working. During this time, their earned income is not counted towards rent calculations.
• Student income: In some cases, income earned by full-time students might be excluded or partially excluded from the household income calculation.
• Flat-rent programs: In programs with flat rent (not based on income), the minor’s income generally won’t impact the rent.
• Income reporting: It’s crucial for HUD residents to accurately report all household income, including earnings from minor dependents. Failing to do so could lead to penalties or eviction.

Amount of income: The amount of income earned by the minor also plays a role. Small earnings may not significantly affect the rent increase, while higher incomes could lead to a more significant change.

Local PHA policies: Each local Public Housing Authority (PHA) may have additional policies or guidelines regarding dependent income and rent calculations.

Recommendations:

• Contact your local PHA: As specific rules and exceptions can vary, directly contact your PHA for the most accurate information about how your child’s income might affect your rent.
• Claim exclusions or deductions: Check if your PHA offers any exclusions or deductions for student income or income from dependents with disabilities.
• Manage expectations: Discuss potential rent adjustments with your child if their income could significantly impact the household finances.

Remember, open communication and accurate reporting of income are essential to avoid any issues with the PHA.

Whose income is counted? for more information see this link

For more information about income and HUD programs – click here. 

Whose income is counted?