Rent Based on Ability to Pay

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Under HOME rental housing programs, the rent each family pays is not usually determined based specifically on that family's ability to pay. Rather, "high" and "low" HOME rents are generally established for each unit in the project, and the family pays the rent established for the unit they will occupy.

Nonetheless, HOME Program rules do permit PJs to design a program in which rents are determined based on the household's ability to pay.

The rent for tenants in such a rental housing program is equal to 30 percent of the tenant's monthly "adjusted income."