Example – Anticipated Increase in Hourly Rate

February 1 Certification effective date $7.50/hour Current hourly rate $8.00/hour New rate to be effective March 15 (40 hours per week x 52 weeks = 2,080 hours per year) February 1 through March 15 = 6 weeks 6 weeks x 40 hours = 240 hours 2,080 hours minus 240 hours = 1,840 hours (check: 240 hours + 1,840 hours = 2,080 hours) Annual Income is calculated as follows: 240 hours x $7.50 = $1,800 $1,840 hours x $8.00 = $14,720 Annual Income $16,520 (See Appendix 8 for an explanation of the correct approach to rounding numbers.)

• C. Some circumstances present more than the usual challenges to estimating anticipated income. Examples of challenging situations include a family that has sporadic work or seasonal income or a tenant who is self-employed. In all instances, owners are expected to make a reasonable judgment as to the most reliable approach to estimating what the tenant will receive during the year. In many of these challenging situations, midyear or interim recertifications may be

HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent

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Section 1: Determining Annual Income required to reflect changing circumstances. Some examples of approaches to more complex situations are provided below.