What income is excluded from Section 8: detailed interpretation

What income is excluded from Section 8? Understanding Section 8 housing assistance is vital for those seeking affordable housing. Administered by the U.S. Department of Housing and Urban Development (HUD), this program offers crucial support to individuals and families in need. In this article, we’ll explore income exclusions in Section 8 and their impact on eligibility and recipients.

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What income is excluded from Section 8: Supplemental Security Income (SSI)

SSI is a lifeline for many people with disabilities or limited income, often excluded when determining SSI eligibility for Section 8. It recognizes the financial challenges of disabled individuals, ensuring access to affordable housing.

Disability compensation, encompassing various disability-related payments, is crucial in Section 8 eligibility.

Understanding disability compensation treatment in calculations is vital for applicants.

Adoption assistance payments

Adoption assistance payments, often excluded in Section 8 calculations, support families adopting special-needs children, acknowledging the financial commitment needed for their care.

Student financial assistance

It is an income source that can impact Section 8 eligibility. Understanding how student financial assistance is treated can help applicants make informed decisions regarding their education and housing options.

Determining eligibility

Let’s look at this issue in more detail.

Annual income

Annual income is a central factor in determining eligibility for Section 8 assistance.

It covers all household members’ total income but excludes certain sources to ensure aid reaches those in genuine need.

Supplemental Security Income eligibility

Understanding Supplemental Security Income eligibility is vital for Section 8 applicants. This exclusion ensures that individuals with disabilities receiving SSI can access affordable housing without affecting their eligibility or assistance level.

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Employment training program

Participating in an employment training program can lead to financial stability.

Income from employment training programs is often excluded in Section 8 calculations, enabling individuals to improve job prospects without jeopardizing housing assistance.

Family member

Family members play a pivotal role in the Section 8 eligibility process. It’s important to consider the income of every family member, including those whose income may be excluded, to accurately determine the household’s financial situation.

Additional exclusions

  • Insurance payments

Income from insurance payments, like health and accident insurance, is typically excluded to allow families or family member to use these funds for healthcare without affecting housing assistance.

  • Resident service stipend

Residents providing community services may receive a resident service stipend. A resident service stipend is often excluded from the yearly income calculations, recognizing their valuable contributions to the community.

  • Local employment training programs

Local employment training programs empower individuals with essential skills for stable employment. Excluding their income encourages participation without affecting housing assistance.

  • Property taxes paid and medical expenses

Property taxes paid by family members and documented medical expenses are also excluded from the annual income calculation. This exclusion helps ensure that necessary expenses do not reduce a family’s housing assistance.

  • Exclusions of income

Understanding exclusions is vital for Section 8 applicants as they can significantly impact prospective monthly amounts for housing assistance. Awareness of what is and isn’t counted is crucial.

Read also: Apartments For Rent Craigslist: Useful Tips

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Special Considerations

  • Foster Children

Foster children living in a household can have their income excluded from the yearly calculation to avoid affecting the family’s housing assistance. This helps maintain a stable environment for the foster family member.

  • Lump sum

Lump sum payments, like inheritances or windfalls, are excluded to prevent sudden income spikes from affecting housing assistance. This exclusion prevents any unexpected lump sum amount from drastically changing a family’s assistance. This policy safeguards program integrity, preventing needy families from facing sudden and substantial housing assistance changes due to a lump sum amount of funds.

  • Child care

Child welfare subsidies provided to working parents are also commonly excluded, recognizing the need for affordable child care to support employment.

  • Temporary assistance

In some cases, temporary support may be provided to individuals or families facing financial difficulties.

While this is not a common exclusion, it’s an essential resource for those in need.

It is important to understand what income is excluded from HUD. Some other exclusions are:

  1. Personal or property losses are typically considered in applying for Section 8 eligibility, providing relief for families who have experienced personal or property losses.
  2. Foreign government payments are generally excluded from income calculations, acknowledging the unique nature of such payments.
  3. Reparation payments paid are another source of income that is often excluded, recognizing their specific purpose and impact.
  4. Capital gains are treated as income in some cases and may affect Section 8 eligibility, depending on the amount and frequency of such gains.
  5. Other federal statute may provide specific provisions for exclusions under Section 8, and applicants should be aware of these when determining their eligibility.
  6. Armed forces members may have their income treated differently, depending on their allowances and benefits.
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Understanding the nuances of Section 8 income exclusions, including how they affect prospective monthly amounts, is crucial for prospective applicants and current recipients. These exclusions aim to safeguard vulnerable populations, maintain fairness in eligibility assessments, and aid families and each family member in achieving self-sufficiency.

Section 8 contributes to building stable, secure communities, and a brighter future for its beneficiaries.


What is excluded from household income?

Certain income sources commonly excluded from income of the household calculations in Section 8 include SSI, TANF, Earned Income Tax Credit (EITC), some healthcare expenses, like health and accident insurance for any family member, foreign government payments, reparation payments paid, some capital gains, other federal statute provisions, armed forces members, childcare expenses, income of foster children, and child support payments.

Exclusions may vary by region.

What’s the most you can make on Section 8?

The maximum Section 8 income limit varies by region, considering family size and local median income. HUD updates these limits annually to primarily aid households with significantly lower incomes than the area’s median.

What is the HUD definition of gross income?

HUD defines gross income as the total income received by every family member in the household, including wages, self-employment income, Social Security, pension income, and any other source of income. This total income is calculated before any deductions or exclusions are applied.

How does HUD figure your adjusted gross income?

HUD calculates Adjusted Gross Income (AGI) by deducting allowable expenses like childcare, elderly, disabled assistance, healthcare, and disability-related expenses from the household’s gross income. AGI determines Section 8 eligibility and assistance levels.

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