What Counts as Income for Section 8? What Is Included, What Is Excluded, and Child Support (2026)
Section 8 counts almost every dollar that regularly comes into your household from outside it: wages, Social Security and SSI, unemployment, pensions and annuity payments, child support and alimony you actually receive, the net profit of a business, and interest on your savings. What it does not count is a specific list of exclusions in HUD's income rule, including a minor's earnings, foster care payments, medical reimbursements, tax refunds, birthday and holiday gifts, loan proceeds and one-time payments that will not recur.
Your rent is then based on adjusted income, which is annual income minus a few deductions, such as $500 per dependent in 2026.
This is general information, not legal advice. Your housing authority's administrative plan controls the details. Find your agency on HUD's PHA contact list.
The Rule
24 CFR 5.609(a) defines annual income as "all amounts, not specifically excluded in paragraph (b) of this section, received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse of the head of household, plus unearned income by or on behalf of each dependent who is under 18 years of age." When net family assets are over $52,787 (the 2026 threshold) and the actual return on an asset cannot be calculated, it also includes imputed returns at HUD's passbook rate (0.40 percent in 2026).
That definition has three working parts:
- It is inclusive. Anything received is income unless the rule excludes it. You do not look for a rule that says something counts. You look for one that says it doesn't.
- "Received" matters. Income is money that actually comes in, not money you are owed.
- Children are split. A child's earnings are excluded until 18, but unearned income paid for a child, such as Social Security survivor benefits or child support, counts.
What Counts
| Source | Counts? | Note |
|---|---|---|
| Wages, tips, overtime | Yes | Adults 18+; see the student rule below |
| Business or self-employment profit | Yes | Net income; withdrawals beyond what you invested also count |
| Social Security, SSI, SSDI | Yes | Including benefits paid for a child |
| Unemployment benefits | Yes | Workers' compensation is different: it is excluded under the insurance item below |
| Pensions and annuity payments | Yes | Periodic payments from retirement accounts count when received |
| Child support and alimony received | Yes | Only what you actually receive |
| Regular help from someone outside the household | Yes, generally | Recurring money for rent or bills |
| TANF and other cash assistance | Yes | |
| Interest and dividends | Yes | Or imputed income, when assets are over $52,787 and actual returns cannot be calculated |
| Rent from a roommate or tenant | Yes | For shared-housing rules, see can you have a roommate on Section 8 |
What Does Not Count
24 CFR 5.609(b) lists the exclusions. The ones families run into most:
- A minor's paychecks: "earned income of children under the 18 years of age."
- A full-time student's paychecks above $500: "earned income of dependent full-time students in excess of the amount of the deduction for a dependent" ($500 in 2026, $525 in 2027).
- Foster and kinship care payments: "payments received for the care of foster children or foster adults, or State or Tribal kinship or guardianship care payments."
- Income of a live-in aide, foster child or foster adult.
- Insurance payouts for losses: "insurance payments and settlements for personal or property losses, including ... health insurance, motor vehicle insurance, and workers' compensation."
- Medical reimbursements: amounts "specifically for, or in reimbursement of, the cost of health and medical care expenses."
- Loan proceeds, such as a student loan or a car loan.
- Nonrecurring income: "income that will not be repeated in the coming year," including tax refunds and refundable credits when received, economic stimulus payments, short census jobs, "gifts for holidays, birthdays, or other significant life events or milestones," in-kind donations from a food bank, and lump sums such as lottery winnings. Independent contractor, day labor and seasonal income is not excluded under this item, even when it varies.
- Retirement account growth: "income received from any account under a retirement plan," though periodic distributions count when you take them.
- Scholarships and grants for tuition, books, fees and room and board, up to the actual cost.
- Adoption assistance above $500 per child (2026).
- Deferred lump sums of SSI, Social Security and VA disability back pay.
- Civil rights settlements, including back pay awards.
- Hostile fire pay for service members.
- Medicaid or state payments that let a family member with a disability live at home, including payments to a family member who is the paid caregiver.
- Income earned in a Family Self-Sufficiency escrow account.
- Federally mandated exclusions. HUD publishes a list of amounts other federal laws exclude. Philadelphia's plan reproduces it; examples include the value of SNAP food benefits and earned income tax credit refunds.
Child Support, Specifically
Child support you receive counts, because nothing in the exclusion list covers it and it is unearned income paid on behalf of your children. Philadelphia's plan lists "periodic and determinable allowances, such as alimony and child support payments" as income.
Only what you actually receive. The rule counts amounts "received." If a court orders $400 a month and you get $150, tell the housing authority and show the payment history. Philadelphia says it "must request third-party verification of court ordered child support from Family Court" when there are minors in the household and a parent lives elsewhere.
Support you pay is not a deduction. The deductions in 24 CFR 5.611 do not include child support you pay out. Philadelphia adds that "child care expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family's household."
Support between two members of the household is not counted. Philadelphia's plan explains that "if two household members are not married and one provides the other with child support, the child support income is not counted since the source of the income is from an individual who is inside the 'family.'"
The Deductions That Lower Your Number
Rent is based on adjusted income. Under 5.611, subtract:
| Deduction | 2026 | 2027 |
|---|---|---|
| Each dependent (under 18, disabled, or full-time student) | $500 | $525 |
| Elderly or disabled family | $550 | $575 |
| Unreimbursed medical costs of an elderly or disabled family, and disability assistance costs | The part above 10% of annual income | same |
| Child care needed so a member can work or study | Reasonable cost; for work, capped at the earnings it enables | same |
Your total tenant payment is then generally 30 percent of monthly adjusted income. What happens to Section 8 if your income goes up shows the math, and does Section 8 check your bank account covers how income and assets are verified.
Common Questions People Get Wrong
- "Cash jobs don't count." They do. Day labor, gig work and cash tips are income, and the nonrecurring exclusion expressly does not cover independent contractor or day labor income.
- "My tax refund raises my rent." It does not. Refunds are excluded when received, and federal refunds are excluded from assets for 12 months.
- "My 17-year-old's job raises my rent." It does not until they turn 18. See what happens to Section 8 when your child turns 18.
- "Money my mom gives me doesn't count." A birthday gift doesn't. Regular money for rent or bills generally does.
What Landlords Should Know
- Income calculations are between the family and the housing authority. You see the result in the tenant share and the HAP amount.
- A tenant's rent share can change mid-lease when income changes are reported; the agency notifies you of the new split.
Frequently Asked Questions
Does child support count as income for Section 8?
Yes, the child support you actually receive counts. Support you pay to someone outside the household is not deducted.
Does SSI count as income for Section 8?
Yes, regular SSI and Social Security count, including benefits paid for a child. Lump-sum back payments of SSI or Social Security are excluded.
Do gifts count as income for Section 8?
Gifts for holidays, birthdays and life events are excluded as nonrecurring income. Regular, ongoing money from someone outside the household generally counts.
Does unemployment count as income for Section 8?
Yes.
Do tax refunds or the earned income tax credit count?
No. Tax refunds and refundable credits are excluded when received, and the earned income tax credit is on HUD's list of federally mandated exclusions.
Does food stamp (SNAP) money count?
No. The value of SNAP benefits is a federally mandated exclusion.
Does my teenager's job count?
Not until they turn 18. After that, only the first $500 counts if they are a full-time student dependent.
Sources
- 24 CFR 5.609, Annual income
- 24 CFR 5.611, Adjusted income
- HUD, 2026 inflation-adjusted values and passbook rate and 2027 values
- Philadelphia Housing Authority Administrative Plan, June 15, 2023 (chapter 8, section 10.22 and Appendix F)
Looking for a place that takes your voucher? Browse voucher-friendly listings on VoucherMatch.
Have a unit to rent? List your property and reach tenants who already have a voucher in hand.
Sources for this article (6)
- PHA contact list (hud.gov)
- 24 CFR 5.609(a) (ecfr.gov)
- 24 CFR 5.611 (ecfr.gov)
- HUD, 2026 inflation-adjusted values and passbook rate (huduser.gov)
- 2027 values (huduser.gov)
- Philadelphia Housing Authority Administrative Plan, June 15, 2023 (chapter 8, section 10.22 and Appendix F) (pha.phila.gov)
Stay Updated on Housing
Get the latest on fair market rents, voucher programs, and finding housing.
No spam, ever. Unsubscribe anytime.
VoucherMatch Editorial Team
Every rule, date and dollar amount in this article is checked against the agency document it comes from, and the sources are listed above. How VoucherMatch articles are researched and corrected
Find apartments
Listings on VoucherMatch come from landlords who say up front which vouchers they accept.
Related Articles
Section 8 When Your Child Turns 18, 21 or Moves Out
What happens to Section 8 when your child turns 18, turns 21 or moves out: whose income counts, the $525 dependent deduction, bedroom size and what to report.
18 min readWhat Happens to Section 8 If Your Income Goes Up?
After you receive a voucher, a raise does not end it. Your share rises about 30 cents per added dollar. See when to report, the 2027 rule and the 180-day clock.
18 min readSection 8 Interim Change in NYC: How to Report Income Changes
Report an income change mid-year in NYC: NYCHA within 30 days on the Self-Service Portal, HCR within 10 business days, and HPD's decrease form.
17 min readSection 8 Income Limits NYC 2026: 1 to 8 People (HUD)
Section 8 income limits in NYC for 2026: $59,400 for one person, $84,800 for four (HUD FY2026). See the full table, who qualifies and what counts as income.
10 min readCommons West Ruling: Does It Apply to NYC Section 8?
Commons West ruling, checked October 7, 2026: what the court held on Section 8, whether it applies to NYC, where the appeal stands and where to file.
8 min readHaving a Baby on Section 8: Reporting the Birth, Voucher Size, and Whether You Have to Move
A new baby does not need housing authority approval, but you must report the birth, usually within 10 to 30 days. Your rent share usually goes down, your voucher size may go up at the next recertification, and if the apartment becomes overcrowded under HUD's space standards the agency must issue a voucher to move. Here is the rule, what changes, and a New York City note on transfers.
8 min readFind Your Next Home
Explore section 8 apartments and local rental guidance.