Income-Based Rent Calculator
In HUD-assisted housing, your rent is not set by the landlord: it is a federal formula based on your income. This income based rent calculator runs the official Total Tenant Payment calculation (30% of adjusted monthly income, 10% of gross, welfare rent, and the PHA minimum), applies HUD’s standard deductions, and shows which figure sets your rent. This is the public housing and voucher rent formula, not a roommate bill split: if you are dividing a market rent between housemates, that is a different calculation, covered by our split rent by income calculator.
Quick Answer
A household with $30,000 of annual income and two dependents gets $960 in HUD deductions, for $29,040 of adjusted income. Monthly that is $2,420, and 30% of it is $726, which beats 10% of gross ($250) and the $50 minimum. The Total Tenant Payment is $726 a month.
- Rent is the highest of four figures. HUD takes the max of 30% of monthly adjusted income, 10% of monthly gross, the welfare housing portion, and the PHA minimum.
- Deductions are real money. Each dependent cuts $480 off counted income; an elderly or disabled head cuts $400 more.
- 30% usually wins. For most working families the adjusted-income figure is the highest, which is why the program is called the 30% rule.
- Your PHA has the final word. This estimates the federal formula; the housing authority verifies income and deductions at reexamination.
- Quick Answer
- How HUD actually computes your rent
- The deductions that lower your rent
- Why your neighbor pays a different amount
- Why the amount you hand the landlord can differ from your Total Tenant Payment
- What income-based rent tools usually get wrong
- Frequently Asked Questions
- Add This Calculator to Your Website
- References
How HUD actually computes your rent
HUD calls your share the Total Tenant Payment (TTP). The housing authority totals every income source in the household, subtracts the allowances you qualify for, and converts the result to a monthly figure. Then it tests four numbers and charges the highest, rounded to the nearest dollar, under 24 CFR 5.628.
$30,000: wages, benefits, support, all counted.
2 dependents × $480 = $960. Adjusted: $29,040.
30% of $2,420 = $726 vs 10% of $2,500 = $250 vs $0 welfare vs $50 minimum.
$726 a month Total Tenant Payment.
The same math runs in public housing and the Housing Choice Voucher (Section 8) program; with a voucher, the housing assistance payment covers the gap between your TTP and the approved rent. If you are weighing renting against owning once your income rises, our rent or buy calculator compares the two paths side by side.
The deductions that lower your rent
Because 30% of adjusted income usually sets the rent, every deduction dollar saves you 30 cents a month. These are the standard HUD allowances.
| Deduction | Amount | Monthly rent saved |
|---|---|---|
| Each dependent | $480 | $12.00 |
| Elderly or disabled head / spouse / co-head | $400 | $10.00 |
| Unreimbursed medical (eligible households) | Amount above 3% of annual income | 30% of the deductible amount ÷ 12 |
| Childcare to work or attend school | Actual costs | 30% of costs ÷ 12 |
Income exclusions matter too: earnings of minors and certain benefits never enter the total at all. Keep pay stubs, benefit letters, and receipts organized, because the PHA verifies every figure.
Why your neighbor pays a different amount
Two households with the same income can pay different rents because their deductions differ. The examples below use the same $30,000 income with one change at a time.
Same building, same income, different rent: the deductions explain it. Add an elderly head to the example and adjusted income falls to $28,640, monthly to $2,386.67, and 30% of it to $716 a month. With no income at all, the four-way test collapses to the PHA minimum, anywhere from $0 to $50. If your earnings later rise enough to buy, our approval for home loan calculator checks what you could qualify for.
Why the amount you hand the landlord can differ from your Total Tenant Payment
Your Total Tenant Payment covers rent plus utilities, so the rent portion you hand the landlord is the payment minus your utility allowance. That split is why the calculator shows both figures.
Under a voucher, a second difference can appear at move-in: if the rent you choose is above your housing authority payment standard, your family share can run above your Total Tenant Payment, capped at 40% of monthly adjusted income at initial occupancy. The calculator estimates the federal formula; your payment standard and the unit you choose set the final family share.
What income-based rent tools usually get wrong
Most rent calculators multiply income by 30% and stop, which skips the deductions that legally lower the figure and the three other tests that can raise it. They ignore the welfare-rent and minimum-rent prongs entirely, and they never separate the tenant payment from the utility allowance, so users confuse what goes to the landlord with what goes to the power company. This calculator runs the full four-way TTP test with the standard deduction schedule and splits out utilities, matching the federal formula.
Frequently Asked Questions
The housing authority computes your Total Tenant Payment as the highest of: 30% of monthly adjusted income, 10% of monthly gross income, the welfare housing portion, and the PHA minimum rent. The voucher then covers the approved rent above your share.
Wages, Social Security, pensions, disability, child support, alimony, and other recurring income for every household member. Earnings of minors and certain benefits are excluded.
$480 per dependent, $400 for an elderly or disabled head (or spouse/co-head), unreimbursed medical expenses for eligible households, and childcare costs needed to work or attend school.
The four-way test falls to the PHA's minimum rent, which can be set anywhere from $0 to $50 a month for public housing and vouchers.
The TTP covers rent plus utilities. If you pay utilities directly, the utility allowance is subtracted from your TTP to get the rent portion you hand the landlord.
Yes. The PHA reexamines income at least annually (and between exams if income changes significantly), then recalculates the TTP from the new figures.
The federal formula is the same, but each PHA sets its own minimum rent ($0-$50) and payment standards, so the final number varies by housing authority.
No. This calculator runs the HUD Total Tenant Payment formula for public housing and voucher households, where rent is set from household income and deductions. Splitting a market rent between roommates in proportion to income is a different calculation with no deductions, minimum rent, or utility allowance.
Ask your housing authority about a financial hardship exemption from the minimum rent. The federal rule requires an exemption when a family cannot pay the minimum because of hardship, including loss of assistance, a drop in income, or a death in the family. The exemption is decided by your housing authority, not by this calculator.
Add This Calculator to Your Website
References
- Legal Information Institute, Cornell Law School. 24 CFR 5.628: Total Tenant Payment (highest of 30% of monthly adjusted income, 10% of monthly gross income, welfare housing portion, and minimum rent). Accessed October 25, 2026.
- Legal Information Institute, Cornell Law School. 24 CFR 5.630: Minimum Rent (PHA minimum rent up to $50 for public housing and voucher programs; financial hardship exemption). Accessed October 25, 2026.
- U.S. Department of Housing and Urban Development. HCV Guidebook: Calculating Rent and HAP Payments (TTP, payment standards, and the 40% initial-occupancy family share cap). Accessed October 25, 2026.
- U.S. Department of Housing and Urban Development. Rental Assistance. Accessed October 25, 2026.
- U.S. Department of Housing and Urban Development. Housing Choice Voucher Program (Section 8). Accessed October 25, 2026.
- U.S. Department of Housing and Urban Development. Public Housing Program. Accessed October 25, 2026.
- United States Code. 42 U.S.C. 1437a: Definitions (adjusted income deductions: $480 per dependent, $400 elderly or disabled family, medical and childcare rules). Accessed October 25, 2026.
- U.S. Department of Housing and Urban Development. Mandatory Deductions from Annual Income under 24 CFR 5.611. Accessed October 25, 2026.
- Nan McKay and Associates. Housing Choice Voucher Specialist Rent Calculation Handout (TTP as the greatest of the four figures; tenant rent as rent to owner minus housing assistance payment). Accessed October 25, 2026.
- Electronic Code of Federal Regulations, Title 24 Part 5. 24 CFR Part 5: General HUD Program Requirements (adjusted income and family payment rules). Accessed October 25, 2026.