Date Published: July 2014
When rental assistance is provided as part of a transitional or permanent supportive housing project, program participants receiving rental assistance are required to pay rent. Recipients/subrecipients must follow the requirements in 24 CFR 578.77(c) when calculating a program participant’s rent, which states that each program participant must pay the highest of the following amounts:
(A) 30 percent family's monthly adjusted income;
(B) 10 percent of the family's monthly income; or
(C) the welfare rent (if applicable in your state; if unsure, check with the HUD field office).
However, the rent calculation in 24 CFR 578.77 does not apply to program participants assisted with rental assistance in rapid rehousing or homelessness prevention. Recipients providing rental assistance under the Permanent Housing: Rapid Re-housing or the Homelessness Prevention component must follow the CoC’s written standards for the amount of rental assistance each program participant must pay. These standards are not subject to the rent calculation at 24 CFR 578.77.