Market Rent

• A family whose annual income does not exceed 80 percent of the area median income, as determined by HUD, with adjustments for smaller and larger families. [24 CFR 5.603]

• An entity that has day-to-day frontline responsibilities for a HUDinsured and/or assisted multifamily housing property. The project owner is responsible for seeking out and selecting a management agent that meets the standards outlined in Handbook 4381.5, Chapter 2. The HUD-owner-management agent relationship is defined and subject to the requirements and procedures set forth in HUD Handbook 4381.5.

The geographic area from which a project owner could reasonably expect to draw applicants, based on the services and amenities offered by the development and the needs of the community.

The rent HUD authorizes the owner to collect from families ineligible for assistance. For Section 236 units, the market rent is shown on the project's HUD-approved rent schedule. For Rent Supplement, Section 202, and Section 8 units, the market rent is the same as the contract rent. For BMIR units, market rent varies by whether the project is a rental or cooperative.

1. BMIR Rentals. Market rent equals 110% of the BMIR rent.

2. BMIR Cooperatives. Cooperatives use the term “carrying charge” to describe the amount charged a cooperative member for occupying a unit. Market carrying charges equal the contract carrying charge plus any surcharge established by the cooperative and approved by HUD. If the cooperative has not received HUD approval of a plan for surcharging its over-income members, the market carrying charge equals 110% of the contract carrying charge.

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Minimum Rent The lowest total tenant payment permitted for tenants receiving Section 8 assistance. The minimum rent is $25 and is used when 30% of adjusted monthly income and 10% of gross monthly income and the welfare rent (where applicable) are all below $25. The minimum rent covers the tenant’s contribution for rent and utilities.

Mixed Family A family whose members include those with citizenship or eligible immigration status and those without citizenship or eligible immigration status. [24 CFR 5.504] (See also Prorated Assistance . ) National A person who owes permanent allegiance to the United States; for example, as a result of birth in a United States territory or possession. [24 CFR 5.504]

Near-Elderly family A family whose head, spouse, or sole member is a person who is at least 50 years of age, but below the age of 62; two or more persons who are at least 50 years of age, but below the age of 62, living together; or one or more persons who are at least 50 years of age, but below the age of 62, living with one or more live-in aides. [24 CFR 5.403] Noncitizen A person who is neither a citizen nor a national of the United States. [24 CFR 5.504] Nonelderly Disabled (Handicapped[1] ) Family [Also appears in Definition I – Nonelderly Disabled (Handicapped) Family in Figure 3-6.] A disabled (handicapped[1] ) family in which the head of the family (and spouse, if any) is less than 62 years of age at the time of the family's initial occupancy of a project. [24 CFR 891.505] Operating Rent (PRAC) The operating rent (gross rent) is the rent approved by HUD to cover the operating expenses at a PRAC project. Other Person Under the Tenant’s Control The person, although not staying as a guest in the unit, is, or was at the time of the activity in question, on the premises because of an invitation from the tenant or other member of the household who has express or implied authority to so consent on behalf of the tenant. Absent evidence to the contrary, a person temporarily and infrequently on the premises solely for legitimate commercial purposes is not under the tenant’s control. [24 CFR 5.100]

PAC (Project Assistance Contract) The contract entered into by the borrower and HUD setting forth the rights and duties of the parties with respect to the project and the payments under the PAC. See paragraph 1-3 of this handbook for further description. [24 CFR 891.655]

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