The Rental Assistance payment is basic rent plus the utility allowance, less the net tenant contribution

rd521.subsidy_calculation.payment_equals_basic_rent_plus_ua_less_tenant_contribution · v1.0.0

A borrower's request for a Rental Assistance payment must be based on the difference between the basic rent PLUS the utility allowance for the unit and the net tenant contribution of the tenant. Rental subsidies exist to close exactly that gap: they equal the difference between the approved shelter costs and the tenant contribution calculated under 7 CFR 3560.203(a)(1). Note which rent tier anchors the calculation - it is BASIC rent, not note rent, so a Rental Assistance unit never generates overage.

Confidence

high

Effective from

2005-01-01

Last reviewed

2026-08-30