Example – Imputed Income from Assets
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
“Imputed” means “attributed” or “assigned.” Imputing income from assets is “assigning” an amount of income solely for the sake of the annual income calculation. The imputed income is not real income.
For example, money under a mattress is not earning income. If the money were put in a savings account it would earn interest. Imputed income from such an asset is the interest the money would earn if it were put in a savings account.
A family with cash under a mattress is not required to put the cash in a savings account; but when the owner is calculating income for a family with more than $5,000 in assets, the owner must assign an amount that cash would earn if it were in a savings account.
HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent
6/07
5-28
Section 1: Determining Annual Income
4350.3 REV-1
Example – Determining Income from Assets When Net Family Assets Exceed $5,000
| Type of Asset | Cash Value | Actual Yearly Income |
|---|---|---|
| Checking Account(non- | $455 | $0 |
| interest bearing) | ||
| Savings Account | $6,000 | $150 |
| (interest at 2.5%) | ||
| Stocks(not paying | $3,000 | $0 |
| dividends this year) | ||
| Total | $9,455 | $150 |
Total cash value of assets is greater than $5,000. Therefore, it is necessary to compare the actual income from assets to the imputed income from assets.
The total cash value of assets ($9,455) is multiplied by 2% to determine the imputed income from assets.
.02 x $9,455 = $189
$189 is greater than the actual income from assets ($150).
In this case, therefore, the owner will add $189 to the annual income calculation as income from assets.
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