What Is Tenant Portion
Tenant portion is the amount a Section 8 voucher holder pays monthly toward rent. Under HUD policy, this is typically set at 30% of the household's adjusted monthly income, though it can range from 10% to 40% depending on local PHA rules and state regulations.
How It's Calculated
The PHA calculates tenant portion using adjusted gross income, which excludes certain deductions like medical expenses for elderly or disabled residents, child care costs, and disability assistance expenses. The formula is straightforward: adjusted monthly income multiplied by the PHA's payment standard percentage (usually 30%).
For example, if a household's adjusted monthly income is $2,000 and the PHA uses 30%, the tenant portion is $600 per month. The Housing Assistance Payment (HAP) covers the remaining rent up to the Fair Market Rent limit set by HUD for that area.
Relationship to Total Rent and HAP
Tenant portion plus HAP equals the total rent payment. If a unit's Fair Market Rent is $1,200 and the tenant portion is $600, the HAP covers $600. However, if the tenant portion exceeds the FMR, the household pays the full amount with no HAP contribution from the PHA. This is why tenant portion matters to landlords: it determines your guaranteed payment from the PHA.
If rent increases above the FMR, the tenant portion increases proportionally. Most leases set rent at or below FMR to avoid shifting costs to the voucher holder.
Income Recertification and Changes
The PHA recertifies household income annually. When income increases, tenant portion increases. When income decreases, tenant portion decreases proportionally. Some PHAs allow interim recertifications if household income changes significantly (typically a 10% or greater change).
Tenants must report income changes to their PHA. Landlords should understand that tenant portion adjustments take effect on the lease anniversary or when recertification is completed, which affects your HAP payment timing.
Common Questions
- Can a tenant pay less than the calculated tenant portion? No. The tenant must pay the full tenant portion determined by the PHA. However, tenants can request a lower income calculation if circumstances change significantly.
- What happens if a tenant can't pay their portion? Landlords can evict for non-payment, regardless of voucher status. The voucher does not protect tenants from eviction for breach of lease. The HAP payment continues to the landlord during eviction proceedings unless the lease is terminated.
- Does tenant portion count toward the utility allowance? No. Tenant portion is the housing cost contribution. Utility allowances are calculated separately and reduce the HAP payment when utilities are tenant-paid. The PHA deducts utility allowance from the maximum HAP before calculating the voucher amount.