Federal programs & compliance
Part 5 (annual income)
HUD's cross-program income and asset definitions at 24 C.F.R. Part 5 — the 'Section 8' income rules behind vouchers, HOME, HTF and LIHTC certifications.
Definition
"Part 5 income" — often called "Section 8 income" — is the annual-income definition at 24 C.F.R. Part 5, subpart F: what counts as income, whose income counts, income imputed from assets, and the adjusted-income deductions that set tenant payments. HUD's assisted programs apply it directly; HOME and the Housing Trust Fund adopt it as their income standard; and LIHTC certifications follow the same Section 8 rules under IRS guidance.
After HOTMA, subpart F carries revised asset rules, higher imputation thresholds and streamlined recertifications; HUD Handbook 4350.3 is the working manual for applying the definitions on assisted projects.
Why it matters in an underwrite
One household, one income calculation, many programs: an error in the Part 5 math can cascade into LIHTC noncompliance reported on Form 8823, a HOME covenant violation, and HAP repayment on the same file. Income-qualification mistakes at lease-up are among the most common compliance findings, and they are unit-level revenue risk. Underwrite compliance staffing — or a specialized manager — capable of HOTMA-era certifications from day one.
Sources & related guides
See also
See the term in the law itself
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Last reviewed 2026-07-29. General information, not legal advice.