A young parent is working full time and taking care of two children. Her rate of pay is $8.00 per hour and she works 40 hours per week. Below is how you calculate her TTP.
| $8.00 x 40 x 52 weeks = $16,640.00 |
Yearly gross income |
| 2 children x $480.00 = $960.00 |
Yearly deduction |
| $16,640.00 - $960.00 = $15,680.00 |
Yearly adjusted income |
| $15,680.00 / 12 months = $1,307.00 |
Monthly adjusted income |
| $1,307 x 30% (.30) = $392.00 |
Total tenant payment (TTP) |
Now that we have figured the client's TTP, let's determine the tenant's rent requirements based on the following information:
| Rent to Owner |
$550.00 |
| Payment Standard |
$723.00 (client is eligible for three bedrooms) |
| Utility Allowance |
$220.00 (calculated on Utility Allowance Form) |
A worksheet is provided that is used to determine what the utilities allowance will be for the apartment/house the person wants to rent. In our example, the three bedroom apartment has between 1100 - 1299 square feet of heated floor space. The grid provides the following estimates of utility costs: natural gas heat ($38.75, electric cooking ($6.30), natural gas water heating ($14.18), other appliances and lighting ($53.40, water ($35.21), sewer ($36.78), remove the reference to trash, change central ac to room ac ($8.95), refrigerator ($9.50), and range ($7.83). Add service charge for gas ($8.95). The sum of these costs shows that the utility allowance is $219.71.
How Much Will I Pay for Rent?
| Rent to owner |
A. $550.00 |
| Utility Allowance (from worksheet) |
B. +$220.00 |
| Gross Rent (line A + line B) |
C. =$770.00 |
| Payment Standard (see Payment Standard chart) |
D. $723.00 |
| Enter lesser of line C or D |
E. $723.00 |
| Total Tenant Payment (TTP) |
F. -$392.00 |
| THA portion of rent (line E - line F) |
G. =$331.00 |
| Rent to Owner (line A) |
H. $550.00 |
| THA's portion of rent (line G) |
I. -$331.00 |
| Your Share of the Rent (line H - line I) |
J. =$219.00 |
Is the Rent for This Unit Within the Guidelines?
| Your share of the rent (line J) if line J is a negative amount enter the negative amount. |
K. $219.00 |
| Utility Allowance |
L. $220.00 |
| Total Family Share (line K = line L) |
M. $439.00 |
| Monthly Adjusted Income x .40 (40%) |
N. $522.80 |
| Is Line N more than Line M? x Yes _ No |
E. $718.00 |
If yes, CONGRATULATIONS, the rent for this unit is within guidelines.
If no, sorry, the rent for this unit is too high for the rental assistance.
