Skip to content
RelySign in
← Back to atlas
federalUnited StatesUSDA Rural Development Section 538 Guaranteed Rural Rental Housingincome_calculation

Section 538 income is the sum of each adult member's prior-year income with no adjustments or deductions

rd538.income_calculation.gross_household_income_with_no_deductions · v1.0.0

For Section 538 purposes household income is calculated as the sum of all income of each adult member of the household for the prior year, including any interest income from any assets, and must include all transfer payments such as child support and alimony. No adjustments to income are made: there are no exclusions for lump sum payments, Supplemental Security Income, student financial aid, adoption assistance payments, local employment training program participation, payments in support of a developmentally disabled family member at home, or similar payments. Applicants are not eligible to claim the deductions from income permitted by Section 515 and certain other programs.

This is the opposite trap to the one already recorded in this corpus for Section 515 and Section 521, where income runs through 24 CFR 5.609. Nothing in 7 CFR part 3565 adopts 5.609 for Section 538, and the handbook states a gross, prior-year, no-deductions method in terms. Neither method should be assumed to travel between the two RD programmes.
Confidence
medium
Effective from
2012-02-23
Last reviewed
2026-08-31

Citations

All sources verified within 1 day
  • HB-1-3565, Guaranteed Rural Rental Housing Program Origination and Servicing Handbook
    HB-1-3565 paragraph 8.12 C, GRRHP Definition of Income, printed p. 8-10
    binding_agency_guidanceSource ↗verified 1d ago
  • HB-1-3565, Guaranteed Rural Rental Housing Program Origination and Servicing Handbook
    HB-1-3565 paragraph 8.12 C, GRRHP Definition of Income, printed p. 8-10
    binding_agency_guidanceSource ↗verified 1d ago
  • HB-1-3565, Guaranteed Rural Rental Housing Program Origination and Servicing Handbook
    HB-1-3565 paragraph 8.12 B, Tenant Income Certifications, printed p. 8-10
    binding_agency_guidanceSource ↗verified 1d ago
  • Guaranteed Rural Rental Housing Program
    7 CFR 3565.3, definition of Income eligibility
    regulationSource ↗verified 1d ago