Section 8 Rent Calculator: How to Estimate Your Tenant Portion
February 5, 2026 • Finance Team
The 30% Income Rule
You pay approximately 30% of your adjusted monthly income toward rent. The calculation involves: Calculate Annual Gross Income, Subtract Allowed Deductions, Determine Adjusted Income, Calculate 30%.
What Counts as Income
- Wages and salaries (before taxes)
- Social Security benefits
- SSI, pensions, unemployment
- Child support, alimony received
- Self-employment net income
What Doesn't Count
- Food stamps (SNAP)
- One-time payments (tax refunds, inheritances)
- Foster care payments
- Student financial aid for tuition
Allowed Deductions
$480/year per dependent (children under 18, students, disabled family members). $400/year if head, spouse, or sole member is 62+ or disabled. Medical expenses exceeding 3% of income (elderly/disabled only).
Calculation Example
Family of 4 with $2,000/month income ($24,000/year): $24,000 - $1,440 (3 dependents × $480) = $22,560 adjusted. Divided by 12 = $1,880/month. × 30% = $564/month tenant portion.