The Total Tenant Payment is the amount a Section 8 household must contribute toward rent and utilities each month, generally calculated as 30% of adjusted monthly income.
The Total Tenant Payment (TTP) is the amount that a Section 8 voucher-holding family is expected to contribute toward their housing costs each month. It is a fundamental component of the subsidy calculation and is determined during the eligibility and recertification process by the PHA.
TTP is calculated as the greatest of: (1) 30% of monthly adjusted income, (2) 10% of monthly gross income, or (3) the welfare rent (in states with designated welfare rent). In practice, 30% of adjusted income is the most common basis. Adjusted income accounts for certain deductions including dependent allowances ($480 per dependent), elderly/disabled household deductions ($400), medical expenses for elderly/disabled households, and childcare costs necessary for employment.
The relationship between TTP and the Housing Assistance Payment determines the tenant's actual out-of-pocket housing cost. If the gross rent (contract rent plus utility allowance) equals the payment standard, the tenant pays exactly the TTP. If the gross rent is below the payment standard, the tenant pays less. If above, the tenant pays TTP plus the difference between gross rent and payment standard.
TTP changes at each annual recertification as the family's income and circumstances change. An increase in income raises TTP (and reduces the HAP), while a decrease in income lowers TTP (and increases the HAP). Families experiencing income changes between recertifications can request an interim recertification. Review FMR rates that affect payment standards at FMR8.com.
The Total Tenant Payment (TTP) is the amount a Section 8 household must pay toward housing costs each month. It is generally 30% of adjusted monthly income, but cannot be less than 10% of gross income. This determines how much the tenant contributes and how much the government covers.
Adjusted income deductions that reduce TTP include: $480 per dependent, $400 for elderly/disabled households, unreimbursed medical expenses over 3% of income (for elderly/disabled), and necessary childcare costs. Lower adjusted income means a lower TTP and a higher subsidy.
Look up current Section 8 Fair Market Rent rates by ZIP code, city, or state.