What Is Total Tenant Payment
Total Tenant Payment (TTP) is the minimum amount a Section 8 tenant must pay toward rent each month. It equals the highest of three calculations: 30% of adjusted income, 10% of gross income, or the applicable welfare rent (also called the minimum rent). The Housing Authority calculates TTP annually when processing income recertifications.
How TTP Is Calculated
The PHA applies three formulas and uses whichever produces the largest payment:
- 30% of adjusted income: The PHA subtracts allowances (elderly/disabled deduction, dependent deduction, child care costs, medical expenses) from gross income, then multiplies by 0.30. For a household with $2,000 gross income and $300 in allowances, TTP would be $510 (($2,000 - $300) × 0.30).
- 10% of gross income: Applied without deductions. A $2,000 gross income household pays at least $200.
- Welfare rent: A minimum rent floor set by the PHA, typically between $0 and $50 monthly depending on local policy. Some PHAs set this to $0, others to $25 or $50.
The tenant pays whichever amount is highest. The Housing Authority's rent subsidy (the voucher) covers the remaining portion up to the Fair Market Rent (FMR) for the unit's size and location.
Landlord and Tenant Obligations
As a Section 8 landlord, you receive TTP directly from the tenant and the subsidy portion from the PHA. You cannot demand the tenant pay more than TTP without breaking the lease and voucher regulations. If a unit's FMR is $1,200 and TTP is $350, the PHA pays you $850 and the tenant pays $350. If your lease requires $400, you must either accept the voucher amount or decline the tenant.
Tenants must pay TTP regardless of employment status. If a tenant loses income or becomes unemployed, TTP does not automatically drop. The tenant can request an interim recertification if there is a substantial change in household circumstances, but TTP may increase if income decreases significantly enough to trigger the 10% gross income floor or welfare rent minimum.
Common Questions
- Can I charge the tenant more than TTP? No. HUD regulations and your Housing Assistance Payments contract prohibit charging above TTP. Doing so violates the lease standards and can result in PHA sanctions.
- What happens if a tenant's income drops? TTP may remain unchanged or increase depending on which calculation applies. If adjusted income drops but gross income stays above 10% of the subsidy threshold, the 10% floor may apply. Request the tenant report the change to trigger an interim recertification.
- Does TTP change if Fair Market Rent increases? No. TTP is based on the tenant's income and household composition only. FMR changes affect the subsidy amount the PHA can pay you, not what the tenant owes.
TTP in NSPIRE Inspections and PHA Compliance
While TTP itself is not an NSPIRE inspection item, it is critical to Section 8 compliance audits. PHAs review lease terms and tenant files during monitoring to confirm TTP is correctly calculated and charged. Discrepancies between calculated TTP and actual tenant payments can trigger findings during a PHA compliance review. Keep detailed income recertification records and lease documentation to demonstrate proper TTP application.