Negotiate/clarify rent amount if necessary. The Tenant’s rent portion must not exceed 40% of their monthly adjusted income for rent and utilities. Perform the Affordability Test (applicable if gross rent exceeds payment standard) using the Affordability Worksheet, (MSHDA 248).
The HA must manually or electronically calculate the limit using the worksheet after all income verifications have been received to assure compliance with the 40% rule. If the gross rent is less than or equal to the PS, the affordability cap does not apply. If the gross rent is greater than the PS, then the cap does apply.
Calculate the limit by dividing the adjusted annual income divided by 12 (round) times 0.4. If the 40% cap is greater than or equal to the TTP, then the unit is affordable for family.
If the Gross Rent is greater than the Payment Standard for the subject county, submit the MSHDA 248 with other paperwork when the case is submitted for approval.
Note: Exempt or Disallowed Income cannot be included in the calculation.
Affordability cap does not apply to Affordable Assistance Housing Program (AAHP) participants. See Chapter XIX.