In 2023, only 2% of project-based Section 8 households depended on welfare as their major source of income. The U.S. Department of Housing and Urban Development (HUD) provides this information annually as part of its “Picture of Subsidized Households.”

What does HUD consider sources for Section 8 Annual Income?

Last year, household wages made up nearly 18% of Section 8 annual income sources. The majority of households depended on “other” sources.

According to HUD, it’s a diverse list. In addition to wages and welfare, “other” sources of income can also include:

1. Business and Profession:
   After certain allowable deductions as per IRS regulations, net income from business or professional operations reflects the entrepreneurial spirit within these communities.
2. Property Income:
   Interests, dividends, and other real or personal property income contribute to the household’s financial stability.
3. Periodic Receipts:
   Social security, annuities, insurance policies, retirement funds, pensions, and other similar periodic receipts form a significant part of the income for many.
4. Compensation and Benefits:
   This source includes unemployment, disability compensation, worker’s compensation, and severance pay. Landlords will include these in the income calculation, highlighting the support systems in place during times of need.
5. Alimony and Support Payments:
   Regular allowances such as alimony, child support, and gifts showcase the extended network of support that families might rely on.
6. Military Pay:
   Income also includes regular and special pay, along with allowances for military service members, except for certain exclusions.
7. Educational Assistance:
   Additionally, HUD also considers certain types of educational assistance as income, demonstrating the balance between supporting education and ensuring housing assistance.

The Significance of Diverse Income Sources for Section 8 Stability

HUD’s expansive definition of income ensures that Section 8 assistance accurately reflects the real-world financial situations of participants. More importantly, it’s crucial for maintaining housing affordability and stability.

For more information

• HUD Definition of Section 8 Annual Income
• “How Your Rent is Determined” brochure
• How to Apply for Section 8
• Section 8 Housing: Debunking 5 Common Misconceptions