How to Calculate Income Requirement with Subsidy or Other Assistance
Attention: All On-Site Associates
Please review the following information about calculating income for applicants with a subsidy or other assistance. Additional information can be found in the new Non-Discriminatory Practices Policy available in E-Way.
How to Calculate Income Requirement with Subsidy or Other Assistance
Legislation prohibits housing discrimination based on the source of an applicant or resident’s income, whether it comes from an employer, a Section 8 voucher, or some other source.
In Washington, that legislation requires landlords to accept income from, among others, benefits or subsidy programs, housing and public assistance (including, but not limited to, Section 8 vouchers), emergency rental assistance, veteran and Social Security benefits, student loans, supplemental security income or other retirement programs, and other programs administered by federal, state, local, or non-profit entities.
In California, the law requires landlords to accept income from federal, state, or local government entities providing public assistance or housing subsidies including, but not limited to, Section 8 vouchers.
If an applicant is using assistance from a third party that qualifies under the applicable source of income law, only the applicant's portion of rent can be used to calculate the applicant’s required income.
The following calculation should be used (Rent – Subsidy) x Income Multiplier = Income Requirement.
For example, an applicant is applying to a unit with a monthly rent of $2,000 and has a Section 8 voucher for $1,200. The example community requires that applicants have two times the monthly rent as income. Using the formula above, the income calculation is as follows: ($2,000 - $1,200) x 2 = $1,600 (the applicant must have at least $1,600 in monthly income to qualify).
This process for calculating income is the same in both Washington and California.
If you have questions on this topic, please contact legalops@essex.com.