HUD adjusted income worksheet

From annual income to monthly adjusted income

PHA-counted annual income before deductionsTotal approved annual dependent deductionApproved annual elderly / disabled family deductionApproved combined annual health / disability-assistance deductionApproved annual child-care deductionOther PHA-approved annual deductions

These are annual amounts approved under my PHA’s applicable income, deduction and hardship policies.

Reconcile income

Enter all annual amounts; use zero for a confirmed zero deduction.

Why there is no universal 2026 deduction preset

HUD’s May 14, 2026 Notice PIH 2026-15 sets January 1, 2027 as the full HOTMA compliance date for PHAs other than the identified MTW and exclusively FRS-reporting exceptions. Those exceptions have separate implementation timing. Some requirements already applicable from July 1, 2025 were not deferred. Ask your PHA which policy applies to the effective date of your certification.

Using a fixed dependent deduction, family deduction or medical-expense percentage without that policy can produce a wrong rent estimate. Indexed amounts, implementation timing and hardship relief can matter. The worksheet therefore takes approved deduction totals rather than automatically imposing one set of rules.

Check each line on your calculation notice

• Income: use the PHA-counted annual income after exclusions, before deductions. Gross pay alone may not equal this amount.
• Dependents: use the total allowed deduction for qualifying dependents, not a count of every household member.
• Elderly or disabled family: use the allowed family deduction once, not once per person.
• Health and disability assistance: enter the combined allowed deduction after the applicable threshold, eligibility, earned-income limit and hardship treatment. Do not enter raw bills or count the same expense twice.
• Child care: enter the amount approved as deductible after qualification and any applicable earnings limit. An expense is not automatically deductible just because it was paid.
• Other deductions: use only an amount the PHA actually permits. Do not put income exclusions here if they already reduced the income line.

Worked reconciliation

With $26,400 of counted annual income and $2,400 of approved annual deductions, adjusted annual income is $24,000, or $2,000 a month. The 30% component is $600. This is only one TTP component; the rent calculator also considers 10% of monthly income, the welfare-designated housing amount and the applicable minimum rent.

Continue to the full calculation in the Section 8 rent calculator. This reconciliation displays each monthly estimate to cents, rounding an exact half cent up. The percentage components use the annual amounts before monthly rounding. Use the PHA’s monthly amount if its required intermediate rounding differs; these components do not replace its whole-dollar TTP determination.

Sources

HUD Notice PIH 2026-15 explains the revised implementation timing. 24 CFR 5.611: eCFR regulation text as of October 1, 2026 sets deduction and hardship provisions. Its indexed base amounts do not establish the deduction applied to a particular certification. Review your PHA administrative plan and certification notice for the amounts actually applied.