Q&A – Contract Rent

Question: I have a Section 236 property, which has a Section 8 contract on all units (100% Section 8).  If a Section 8 tenant’s subsidy goes to zero because their income goes up, does that tenant pay contract rent or market rent?  ~Manager in TN

Answer: In this case, you would terminate the tenant’s Section 8 subsidy.  Then you would do an Initial Cert into the 236 program, and the tenant would pay somewhere between Basic and Market, depending on his/her household and financial information.  Remember – the tenant’s Annual cycle changes to the first of the month of the Initial Cert (for required ARs when the tenant is paying less than Market rent).  (4350.3, 5.30 C)