Menu
If you’re a senior on a limited income, affordable housing communities may provide you with the housing, amenities and peace of mind you’re looking for.
Here are some commonly asked questions about HUD housing communities:
Is HUD housing right for you?
What is HUD housing?
HUD housing includes rental communities where the basic rent is income-based and is typically no more than 30 percent of a person’s monthly income.
HUD communities are owned and managed by a not-for-profit entity, and subsidized by the U.S. Department of Housing and Urban Development (HUD).
Is HUD the same as LIHTC? Click to learn more.
No, the Housing and Urban Development program is not the same as the Low Income Housing Tax Credits program. But LIHTC communities and HUD communities are similar in many ways. While they’re both affordable housing options for people on limited incomes, they have different age restrictions, income qualifications, and program subsidies.
HUD communities are overseen by the U.S. Department of Housing and Urban Development, and LIHTC communities are overseen by the Internal Revenue Service.
Who can live in senior HUD communities?
Each community has its own specific eligibility plans, but age and income are two common residency requirements.
- Age: In most senior HUD communities, the minimum age ranges from 55 to 62, with some exceptions for people with disabilities. Generally, only one member of the household must meet the age requirement.
- Income: Residents in senior HUD communities must have limited incomes. The limits are calculated by comparing a resident’s income to the area median (mid-point) income. Where a person lives and the number of people in the household both affect the area median income.
There’s no single number that represents an area median income.
A general rule of thumb is that if you cannot find an apartment where you live where rent is less than 30 percent of your income, you may be eligible to live in an affordable housing property.
What if I own a home or have other assets?
You may still meet HUD’s income qualifications even if you have assets or own your house. Residency eligibility is based on income, including income that's generated from your assets.
You can retain your home as an investment, you just can’t live there while you are a resident of a senior HUD community.
How much is rent?
If you live in a senior housing community that’s subsidized by HUD, your monthly rent won't be more than 30 percent of your adjusted gross income.
Adjusted gross income is the total income you receive — including income from your assets and Social Security — minus qualified medical expenses (such as prescriptions, health insurance premiums and prescription eyeglasses) and other allowable deductions (such as annual automatic deductions).
Click for an example of how HUD rent is calculated.
Please note: Every HUD community’s rent specifications will be different, and depend on your individual income, eligible expenses and eligible deductions.
For illustrative purposes, here’s an example of how rent can be determined:
First, calculate your annual income:
$9,600 per year from Social Security ($800 per month x 12 months)
+ $1,800 per year from pension ($150 per month x 12 months)
+ $55 per year from money market interest
= $11,455 total annual income
Next, calculate how much you can deduct for medical expenses:
$750 per year for medical treatments
+ $1,200 per year for prescriptions ($100 per month x 12 months)
= $1,950 total annual medical expenses
HUD determines that each household should be able to pay up to 3 percent of an annual income on medical expenses. Typically, we can deduct the medical expenses above that 3 percent threshold.
If your annual income is $11,455, 3 percent is $344.
So we can deduct $1,950-$344, or $1,606 for your qualifying medical expenses.
Next, calculate any other allowable deductions:
Just like when you do your taxes, there are some automatic deductions from your income that we can include. For this example, we’ll use the annual elderly deduction of $400.
So this example’s total annual deductions is $400.
Next, calculate your adjusted monthly income:
$11,455 total annual income
- $1,606 for your qualifying medical expenses deduction
- $400 for your automatic annual deduction
= $9,449 for your adjusted annual income
Your annual adjusted income of $9,449 divided by 12 months in a year equals a monthly adjusted income of $787.
This monthly adjusted income is the number used to determine rent in a HUD community. 30 percent of the monthly adjusted income is $236.
So the basic monthly rent in this example is only $236.
Staff members at the HUD community you’re interested in can help explain the specific qualifications needed to live there, and help determine your rent and eligibility.
What’s a typical senior HUD community like?
HUD communities typically include efficiency, studio or one-bedroom apartments.
Most apartments come unfurnished, but include major kitchen appliances and paid utilities.
Our apartments are build specifically for seniors.
Many communities include common spaces, community events and opportunities for social activities.
Comments