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Establishing HOME Rents: A Refresher

Let's take another look at the requirements for low and high HOME rents.

Low HOME Rents. As explained in Topic 4: Complying with Occupancy Requirements, in rental housing projects with 5 or more HOME-assisted units, 20 percent of the HOME-assisted units must be occupied by very low-income families, i.e., families with incomes at or below 50 percent of the area median income (AMI). Rents on these units may not exceed the Low HOME rents established by HUD. Low HOME rents must be the lesser of:

  • 30 percent of the annual income of a household at 50 percent of AMI, adjusted for unit size and tenant-paid utilities; or
     
  • The High HOME rent.

NOTE: The HUD-established rent is not based on the income of the tenant actually occupying the unit, but instead uses the AMI for the number of persons typically occupying a unit of a given size.

High HOME Rents. All other HOME-assisted units within a project must be leased to households at or below 80 percent of AMI at rents that do not exceed the High HOME rents. (Remember, original households must generally qualify with incomes at or below 60 percent of AMI, while new households may generally qualify with incomes at or below 80 percent of AMI.) The High HOME rent is the lesser of:

  • 30 percent of the annual income of a household at 65 percent of AMI, adjusted for unit size and tenant-paid utilities; or
     
  • Section 8 Fair Market Rents (FMRs).

View the Low and High HOME rent limits for your state.