Calculating Income from Assets When Assets Exceed $5,000
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
When net family assets are more than $5,000, annual income includes the greater of the following:
a. Actual income from assets; or
b. A percentage of the value of family assets based upon the current passbook savings rate as established by HUD. This is called imputed income from assets. The passbook rate is currently set at 2%.
To begin this calculation, first add the cash value of all assets. Multiply the total cash value of all assets by .02. The product is the “imputed income” from assets. Then, add the actual income from all assets. The greater of the imputed income from assets or the actual income from assets is included in the calculation of annual income.
HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent
6/07
5-27
Section 1: Determining Annual Income
4350.3 REV-1
Example – Use Actual Income from Assets When Total Net Family Assets are $5,000 or Less
| Type of Asset | Cash Value | Actual Yearly Income |
|---|---|---|
| Certificate of Deposit | $950 | $40 |
| $1,000 | ||
| withdrawal fee $50 | ||
| interest @ 4% | ||
| Savings Account | $500 | $13 |
| $500 | ||
| interest @ 2.5% | ||
| Stock | $300 | $0 |
| $300 | ||
| Not paying dividends | ||
| Total | $1,750 | $53 |
The total cash value of the family’s assets is $1,750. Therefore, the amount that is added to annual income as income from assets is the actual income earned or $53.
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