Chapter XX: Enhanced Subsidies For Housing Voucher Conversion Actions


Section F: Minimum Rent Requirement

All families who stay in their current unit or move to an appropriate size unit within the same development and receive assistance with an enhanced voucher (whether previously assisted or non-assisted) are subject to a statutory minimum rent. The minimum rent is the amount of rent the family was paying on the date of the prepayment or the voluntary termination. For previously assisted families, the minimum rent is the TTP amount. For unassisted families, the minimum rent equals the gross rent amount. The minimum rent represents the lowest amount the family may pay as their family contribution. In either case, a family pays no less than the minimum rent. Depending on the circumstances, the family may have to pay more than the minimum rent. The minimum rent requirement only applies if the family remains within the opt-out or preservation development. The minimum rent also applies to any subsequent move within the same development.

1. Previously assisted residents

A family assisted under the HCV program at the time of the prepayment/termination must conform to the minimum rent provision if the family chooses to remain in their present unit and meet the conditions under Section G. In those cases a voucher family always pays at least the TTP they paid on the date of the prepayment/termination, unless the family’s income subsequently decreases to a significant extent (15 % or more) from the family’s gross income on the prepayment/termination effective date.

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2. Previously unassisted residents

If a previously unassisted family remains in place, the family always pays at least the TTP amount the family paid on the date of the prepayment/termination.

  • Use the MSHDA utility allowance schedule to calculate the gross rent and minimum total tenant rent payment at prepayment/termination if the contract rent does not include all utilities in the rent the family paid to the owner.
  • If the family income increases, the TTP increases.
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3. Significant decline in family income

If the family income significantly declines (15% or more) from gross family income on the date of the eligibility event, the required minimum family contribution is reduced.

  • After a 15% or greater decline in family income occurs for a previously assisted/unassisted family, the minimum rent becomes the greater of 30% of current adjusted monthly income, or the percentage of the adjusted monthly income the family paid for TTP (or gross rent for an unassisted family) on the effective date of the eligibility event.
  • Once this change in the minimum rent calculation becomes effective for a family, the minimum rent for the family remains that specific percentage of income (e.g., 32%) and does not revert to a dollar amount, even if the family income subsequently increases or decreases. The enhanced voucher minimum rent therefore changes from an actual dollar amount to a specific percentage of income.
  • Thereafter, when a family reports a change in family income, check the income change for the required threshold and perform an interim reexamination. Use the new minimum rent percentage to prevent family hardship and follow regular program rules concerning income changes. The interim change is effective the first day of the month following the date the family reports the change and provides the necessary documentation.

Example: A previously unassisted family paid $500 for gross rent on the effective date of the prepayment that equaled 35 percent (35%) of the family’s monthly-adjusted income at that time. After receiving the enhanced voucher for ten months, the family suffered a 50% decrease in monthly gross income. MSHDA now calculates the enhanced voucher minimum rent for the family as the percentage of monthly-adjusted income the family paid for rent on the prepayment date (35%) instead of the actual dollar amount ($500). The enhanced voucher family in this example must now pay at least 35% of the new monthly-adjusted income for rent regardless of any further changes in family income. This 35% calculation figure will be used for all future re-examinations and cannot be further modified.

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