What Does Section 8 Consider as Household Income?

Understanding household income and determining what qualifies can often feel challenging for many individuals. To simplify things, here’s a breakdown of what Section 8 recognizes as Household Income:

• Wages and salaries, overtime pay, commissions, fees, tips, bonuses, and any other form of compensation for personal services before payroll deductions. This rule applies to all household members over 18 years old.

Additionally, it includes:

• Regular payments from Social Security, annuities, insurance policies, retirement funds, pensions, and benefits related to disability or death.
• Various payments such as unemployment, disability compensation, worker’s compensation, and severance packages.
• WELFARE ASSISTANCE, which encompasses payments from other programs supported, either solely or collaboratively, by federal, state, or local governments, not expressly excluded by Federal Statutes.
• Allowances, including alimony, child support payments, and consistent contributions or gifts received from individuals or organizations outside the home.
• Net income generated from business operations or professions; interest, dividends, and other net income from both real or personal property.
• All regular pay, special pay, and allowances for members of the Armed Forces (excluding Hostile Fire Pay).
• Any earned income tax credit that exceeds income tax liability.

Section 8 also takes your assets into account, which consist of:

• Stocks, bonds, Treasury bills, certificates of deposit, and money market accounts.
• Individual retirement and Keogh accounts.
• Retirement and pension funds.
• Cash maintained in savings and checking accounts, safe deposit boxes, homes, etc.
• Cash value of whole life insurance policies accessible to the individual prior to death.
• Equity in rental properties and other capital investments.
• Personal property held as an investment.
• Lump sums or one-time receipts.
• Mortgages or deeds of trust owned by an applicant.
• Assets disposed of at less than fair market value.

How Do I Calculate My Household Income Compared to My Area’s Median Income for Section 8?

The amount of rent you’ll pay is determined by your landlord’s estimate of your Annual Income. Typically, the landlord assesses your current circumstances to project your income for the upcoming 12 months. However, exceptions may exist, particularly if there is evidence suggesting your income source may end before the year concludes.

The Median Household Income represents the income level that separates your area into two segments: half of the individuals earn more and the other half less. These medians are established for each metropolitan area, certain subdivisions within metropolitan regions, and every non-metropolitan county, which means they differ depending on your intended residence.

How To Find Your Area’s Median Income for Section 8

To discover your area’s Median Income for Section 8, simply click here and follow these straightforward steps:

1. Select the state for the Median Income you wish to find.
2. Choose the County.
3. Click “View County Calculations.”

And voilà! You’ll have comprehensive details about the Median Income of your chosen County. Knowing your area’s Median Income allows you to assess how your income compares within that specific location.

Income Percentages

Your household income must fall within specific percentages linked to the Area Median Income (AMI) to qualify for Section 8. The Department of Housing and Urban Development (HUD) establishes these income limits annually based on the percentage of the Area Median Income and divides them into three categories:

• Extremely Low Income – Incomes at or below 30% of the Area Median Income.
• Very Low Income – Incomes at or below 50% of the Area Median Income.
• Low Income – Incomes at or below 80% of the Area Median Income.

To determine where your household’s income stands in relation to the AMI, divide your income by the AMI.

For instance, if you are a family of 4 with a household income of $41,100 and the AMI for your area for a household of 4 is $79,800 (Area Median/Familial Income), then:

Take your income of $41,100 and divide it by the AMI to get .5150…

This means this household’s income is 50% of the AMI.
The PHA would then place this household’s Section 8 Voucher application on the waiting list, giving it priority for housing resources after applicants with extremely low incomes.

Can A Single Person Get Section 8 Housing?

Absolutely, a single person can qualify for Section 8 housing. This might be a bit perplexing, considering the terminology used by the Public Housing Authority (PHA) to define “family” or “household”. However, if you glance at the guidelines, you’ll see that a single individual—regardless of being displaced, disabled, or elderly—can qualify as long as they meet the PHA and HUD requirements.

Here are key points to keep in mind when applying for Section 8 as a single person:

• You must be 18 years of age or older.
• You should be a US citizen or an eligible non-citizen.
• You cannot secure a rental unit with 2 or more bedrooms.
• Ensure your income is below 80% of the Area Median Income (AMI) in the area where you are applying.
• A criminal history may complicate your application process but won’t necessarily disqualify you.

What Happens with My Section 8 Voucher if I Get Divorced?

If you and your spouse reside in Section 8 housing and are planning to divorce, it’s crucial that the remaining “household” members still meet the income limits, as it may turn out that one or both of you no longer qualify following the adjustment.

There’s a possibility that both of you could continue qualifying, provided your incomes remain under the threshold. The PHA considers specific factors to ascertain who can stay or who must be disqualified from the program, including:

• Domestic or dating violence.
• Stalking incidents.
• The welfare of minors, ill, elderly, or disabled “household” members.
• Income levels.

If you both are on a waiting list together and haven’t yet been placed, one of you will need to be removed from the application.