HUD Passbook Rate Calculator
Calculate Imputed Income from Family Assets
Calculation Results
Calculated Imputed Annual Income:
Understanding the HUD Passbook Rate
The HUD Passbook Rate is a specific percentage used by Public Housing Agencies (PHAs) and owners of HUD-assisted housing to determine the "imputed income" from a household's assets. This calculation is a critical component of determining a family's total annual income, which in turn dictates their eligibility for housing assistance and the amount of rent they are required to pay.
When is Imputed Income Calculated?
Under the Housing Opportunity Through Modernization Act (HOTMA) guidelines, the rules for asset calculation have changed. Traditionally, if a family's total net assets exceeded $5,000, the PHA would calculate the actual income from assets and compare it to the imputed income (Assets x Passbook Rate). The higher of the two values would then be included in the annual income calculation.
With recent updates, the threshold for asset value has increased significantly. It is essential to stay updated with the current HUD handbook (4350.3) or local PHA policies, as the passbook rate itself is subject to periodic adjustments based on national averages of savings account interest rates.
How to Use This Calculator
- Total Net Family Assets: Enter the combined value of all household assets. This includes savings accounts, checking accounts, stocks, bonds, and real property, minus any debt owed on those assets.
- Current Passbook Rate: Input the rate currently mandated by HUD. While this was historically 0.06%, many agencies have updated this to reflect current market conditions (e.g., 0.40%).
- Result: The calculator will provide the annual dollar amount that must be counted as income if the asset total exceeds the required threshold.
Example Calculation
If a family has $60,000 in net assets and the current HUD Passbook Rate is set at 0.40%:
| Component | Value |
|---|---|
| Total Net Assets | $60,000 |
| Passbook Rate | 0.004 (0.40%) |
| Imputed Annual Income | $240.00 |
HOTMA Compliance
Note that under HOTMA, if the net family assets are equal to or less than $50,000 (adjusted annually for inflation), the PHA may not need to impute income, and may instead accept a self-certification of asset value. However, if the assets exceed the threshold, the calculation performed by this tool is mandatory for determining total household income.