Tenant Responsibilities and Reporting Income

To qualify for a Project-Based Section 8 unit, a family must meet HUD’s income limits for their area at the time of initial move-in.

These limits are based on:

• Household size

• Gross annual income (before taxes)

• Local Area Median Income (AMI)

HUD categorizes income levels as:

• Extremely Low Income: ≤ 30% of AMI

• Very Low Income: ≤ 50% of AMI

• Low Income: ≤ 80% of AMI

  Note: For most PBRA properties, the initial eligibility cutoff is Very Low Income (≤50% AMI). However, properties may be allowed to admit families up to 80% of AMI under certain circumstances.

Check the current HUD income limits for your area.

Staying Eligible After Move-In

Unlike vouchers, Project-Based Section 8 tenants do not lose assistance if income rises after move-in. As long as they continue to meet lease and program requirements:

• Tenants may remain in the unit even if their income exceeds the limits.

• However, their rent may increase accordingly (still capped at 30% of adjusted income).

• Families can only be terminated for income if they refuse to pay the adjusted rent or violate other terms of the lease.

🔍 Example: A family of three that qualified at $35,000/year could remain in their unit even if their income rises to $55,000, as long as they follow all program rules.

To remain eligible for assistance under the Project-Based Section 8 program, tenants must meet the following responsibilities:

1. Accurate and Timely Reporting of Income

• Tenants must report all household income at move-in and during the annual recertification process.

• Any changes in income, household composition, or employment must be reported within 10 days of the change.

• Income includes wages, self-employment, Social Security, SSI, child support, pensions, and regular cash gifts.

2. Participation in Recertifications

• Annual recertifications are mandatory.

• Interim recertifications are triggered by changes in household income or size.

• Tenants must provide requested documents, including pay stubs, award letters, or bank statements.

3. Compliance with the Lease Agreement

• Tenants must adhere to all terms of the lease.

• Failure to follow house rules, allowing unauthorized persons to reside in the unit, or participating in illegal activities can result in termination of assistance.

Timely reporting protects your assistance and ensures program compliance. Tenants must notify the management office if:

• Someone moves in or out of the household

• A household member turns 18 or starts earning income

• Income increases or decreases significantly

• Any other material change occurs in the household

Tip: Always report changes in writing and keep a copy for your records.

Adjusted income is used to calculate how much rent a tenant must pay. It factors in allowable deductions such as:

• $480 per dependent

• $400 for elderly or disabled households

• Medical expenses (if they exceed 3% of annual income for elderly/disabled households)

• Child care expenses needed for employment or education

🔗 HUD Handbook 4350.3 contains detailed rules on these deductions.

It is considered fraud if a tenant:

• Fails to report all sources of income

• Underreports household size

• Provides false documents or statements

Tenants found to be committing fraud may be subject to:

• Termination of assistance

• Repayment of subsidies

• Legal action

If a tenant fails to report income or household changes in a timely manner — whether intentional or accidental — they may be responsible for repaying HUD for the overpaid rental subsidy.

In such cases, a Repayment Agreement may be offered by the property. This agreement allows tenants to:

• Repay the debt in installments

• Remain in their unit while resolving the issue

• Avoid termination of assistance (if in good standing with the agreement)

Key points:

• Repayment terms are typically structured over 12 months or more.

• Tenants must stay current on both rent and repayment installments.

• Failure to honor the agreement may result in lease termination and possible legal action.

Learn more about unreported income and repayment obligations here

Tenants are encouraged to report changes promptly to avoid owing money later.

If a tenant cannot provide full documentation but can show evidence of income or household changes through other means, the property manager may request a discrepancy agreement.

This is a short-term solution and requires that the tenant follow up with proper documentation within a set timeframe (usually 30 days).

• Attend your annual recertification appointment and bring required documents.

• Respond quickly to all management requests.

• Report all changes in income and household composition within 10 days.

• Keep copies of all correspondence with your property manager.

• Ask questions if you are unsure about what to report