This slide show presentation describes the framework of the housing voucher program, specifically who benefits from it and how the structure of the program is set up. The presentation explains the types of regulations and financial obligations that a household will face in this situation. The information presented here can benefit both those who are seeking some form of housing assistance and those landlords who are interested in accommodating voucher-assisted households.

1. A N D Y C A R S W E L L
U N I V E R S I T Y O F G E O R G I A
Housing Vouchers:
What They Are and How To
Calculate Them

2. Overview of the process of
Tenant-Based Housing Choice
Voucher Program (formerly
Section 8) Housing
Source: HUD

3. Program Eligibility
 Be very low-income.
 Household’s income must be at or below 50 percent of the area
median income as determined by HUD.
 Be a citizen or a noncitizen with “eligible immigration
status”
 Be in good standing with federal housing programs.
 To be eligible for the Section 8 program, a household must not have:
 Been evicted from public housing,
 Been terminated from another Section 8 program for cause,
 Committed fraud or criminal acts in connection with a federal housing
program, or
 Failed to reimburse a PHA for unpaid rent or damages, or currently
owe money to a PHA.

4. How the payments occur in section 8 housing:
PHA Administers the
program and establishes
local policies
Household
(tenant)
Owner
(landlord)
Selects Section 8
household and
issues voucher
Provides rent
subsidy to owner
Pays tenant
share of rent
to owner

5. What rent will I pay with Section 8?
 Most families with Section 8 pay 30% of their monthly
adjusted income as the tenant portion of the rent.
 Section 8 pays the difference between this amount and the payment
standard set by the housing agency.
 Families pay this amount if they choose housing where the total rent
(rent plus utilities) is less than or equal to the payment standard set
by the housing agency.
 Some families pay up to 40% of their monthly adjusted
income as the tenant portion of the rent.
 Families pay this amount if they choose housing where the total rent
(rent plus utilities) is greater than the payment standard set by the
housing agency.
 Families are not allowed to pay more than 40% of their adjusted
income when they first get a voucher or whenever they move to a new
unit.

6. What are “fair market rents?”
 Each year, the federal government looks at the rents
being charged for privately owned apartments in
different communities, and the costs of utilities
(heat, electricity, etc.) in those communities.
 The "fair market rents" are an estimate of the
average gross rents (rents plus utilities) for medium-
quality apartments of different sizes in a particular
community.

7. What is the “payment standard?”
 The "payment standard" is the maximum monthly rent
assistance that the government will pay to a landlord who
rents to a family with a Section 8 voucher.
 The payment standard depends on the apartment size and the area
where the rental unit is located.
 The payment standard is often the same as the fair
market rent, but can be slightly higher or slightly lower.
 A family with a Section 8 voucher must try to find an
apartment whose rent, including utilities, is not higher
than the payment standard.
 If the rent is higher, the family must pay the extra.
 If the rent is much higher than the payment standard, the housing
agency will not approve the apartment.

8. How is adjusted income calculated?
 Most households pay 30% of their adjusted (net)
income for Section 8 housing.
 Adjusted (net) income is your household’s gross
(total) income minus the following deductions:
 $480 for each dependent.
 Child care expenses for children under age 13 when the child
care is needed so a family member can work, look for work, or
attend school.
 $400 per household if the head of household or spouse is
elderly or has a disability.
 Certain disability assistance and medical expenses that are
greater than 3% of the gross annual household income.

9. Example rent calculation:
 Background:
 you and your spouse are not elderly and do not
have disabilities
 you have three dependent children
 your gross annual income is $21,500
 and you pay $2000 for child care so that you can
work

10. Example rent calculation:
 Deductions:
 Dependent deduction $480 x 3 = $1440
 Child care deduction = $2000
 Total deductions = $3440

11. Example rent calculation:
 Net annual income:
 Equals your gross annual income minus your
deductions:
$21,500 - $3,440 = $18,060
 Net monthly income
 Net monthly income equals your net annual income
divided by 12:
$18,060 / 12 = $1,505

12. Example rent calculation:
 30% of your net monthly income:
 Equals .3 * your net monthly income:
.3 x $1,505 = $451.50

13. Example rent calculation:
 You will pay $451.50 per month if you choose
housing with a total rent (rent plus utilities) less
than or equal to the payment standard. Section 8
will pay the rest.
 If you choose housing with a total rent greater
than the payment standard, you will have to
pay 30% of your monthly adjusted income
PLUS the difference between the payment
standard and the actual rent.
 Remember: the total rent that you pay cannot be greater than 40% of
your adjusted income if you are entering the Section 8 program for
the first time or moving to a new unit.