Use the Affordability Calculator to get your asking rent

Affordability is based on the adjusted income of the Section 8 HCV family. What may be affordable to one family may not be affordable for another family. The formula to determine affordability is: Maximum Rent Burden plus Maximum Subsidy minus Utility Allowance. If the result is lower than your asking rent, then the rent IS NOT affordable. The housing authority may ask you to lower your asking rent. If the result is higher than your asking rent, then the asking rent IS affordable.

1. The Maximum Rent Burden is 40% of the adjusted monthly income. With the family’s consent, you can obtain their adjusted monthly income from the housing authority.
2. The Maximum Subsidy is the maximum portion the housing authority can pay to assist the family. First, determine the applicable Voucher Payment Standard (VPS). Second, calculate the Total Tenant Payment (TTP) which is 30% of the adjusted monthly income. With the family’s consent to Affordability Calculator, you can obtain their adjusted monthly income from the housing authority. The Maximum Subsidy is the applicable VPS minus TTP.
3. The Utility Allowance is like a credit for tenant paid utilities, tenant provided appliances and applicable Systematic Code Enforcement Program (SCEP) and/or Rent Stabilization Ordinance (RSO). Include only the utilities the family will need to pay for, appliances the family will need to provide, and applicable SCEP/RSO, total the corresponding allowances

Sounds confusing? It’s not once you get the hang of it. For quicker results, use our Affordability Calculator during the tenant screening process, and before submitting an RFTA to determine if your asking rent is affordable based on the family’s adjusted monthly income.