7.7.12.8 Ineligible Income
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States
A. Ineligible income should be noted and discussed in both the narrative appraisal report and the remarks section of form HUD-92264. There is no prohibition on this category of income, but it cannot be included in the income calculation for the purposes of determining value or the maximum insurable mortgage. Ineligible income includes the following:
Interest Income. The appraiser must not include in the calculation of income any interest income, including interest on reserves.
Ineligible Fee Income. Non-recurring and non-regular income that is not reliable may not be included in the calculation of income. Examples may include, but are not limited to, forfeited security
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Chapter 7 Valuation & Market Analysis 7.7 Estimating Project Income
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deposits, or forfeited rent. Reliance on a forfeited security deposit or forfeited rent may be common due to management practices in a project or market but will not be recognized by HUD/ FHA for either the valuation or underwriting.
Furnished Units. Furnished units must be underwritten at the same rental rate as unfurnished units. This applies to all units, including those having corporate and short-term leases. For valuation purposes, furnished units can be valued based on the prevailing market conditions.
Non-Shelter Services/Elderly Developments: Refer to Chapter 3, Section 3.11.3.
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