How Assistance Is Calculated
The rental assistance amount paid on a unit is different
with every family and unit because of factors within the family
and the characteristics of the unit. The method used for calculation
is the same, however.
1. All annual family income is verified. Then any applicable
deductions and exclusions are used to reduce the amount to
give an “adjusted income” amount. TMHA then calculates
the amount of monthly adjusted income, and computes 30% of
that figure resulting in the Total Tenant Payment (TTP).
2. TMHA takes the Payment Standard (figure that represents
the average gross rent for a unit in our area) and subtracts
the TTP from the Payment Standard. The result is an amount
called the Maximum Subsidy. This is the maximum amount
TMHA can pay toward the family rent / utilities. For example:
Family has a Total Tenant Payment (TTP) of $170.
Family eligible for 2 BR unit, which has Payment Standard
of $501.
Payment Standard $501Minus () TTP $170 = Maximum Subsidy
$331
3. Next TMHA calculates the Gross Rent, which is the sum
of the rent to the owner, and an estimate of utilities (heat,
electric, water/sewer, trash) not included in the rent. Example:
Rent to owner is $400 Plus (+) utility estimate of $107
= Gross Rent $507
4. The Maximum Subsidy is the amount of the HAP payment toward
the rent. The remainder of the rent will be paid by the tenant.
Max. Subsidy / HAP $331 Plus (+) Tenant Amt. of Rent $
69 = Rent to Owner $400
5. Sometimes the Maximum Subsidy is more than the Rent to
Owner. In that case, TMHA pays all the rent, and then remits
the remainder to the tenant as a Utility Allowance Payment
to help the tenant cover their utilities.
