24 C.F.R. § 886.124
§ 886.124 Reexamination of family income and composition. (24 CFR Part 886)
Operative Text
(a) Regular reexaminations. The owner must reexamine the income and composition of all families at least once each year. Upon verification of the information, the owner must make appropriate adjustments in the Total Tenant Payment in accordance with part 5 of this title and determine whether the family's unit size is still appropriate. The owner must adjust Tenant Rent and the Housing Assistance Payment to reflect any change in Total Tenant Payment and carry out any unit transfer required by HUD. At the time of the annual reexamination of family income and composition, the owner must require the family to disclose and verify Social Security Numbers. For requirements regarding the signing and submitting of consent forms by families for the obtaining of wage and claim information from State Wage Information Collection Agencies, see part 5, subpart B, of this title. At the first regular reexamination after June 19, 1995, the owner shall follow the requirements of part 5, subpart E, of this title concerning obtaining and processing evidence of citizenship or eligible immigration status of all family members. Thereafter, at each regular reexamination, the owner shall follow the requirements of part 5, subpart E, of this title concerning verification of the immigration status of any new family member. (b) Interim reexaminations. The family must comply with provisions in its lease regarding interim reporting of changes in income. If the owner receives information concerning a change in the family's income or other circumstances between regularly scheduled reexaminations, the owner must consult with the family and make any adjustments determined to be appropriate. Any change in the family's income or other circumstances that results in an adjustment in the Total Tenant Payment, Tenant Rent and Housing Assistance Payment must be verified. See part 5, subpart B, of this title for the requirements for the disclosure and verification of Social Security Numbers at interim reexaminations involving new family members. For requirements regarding the signing and submitting of consent forms by families for the obtaining of wage and claim information from State Wage Information Collection Agencies, see part 5, subpart B, of this title. At any interim reexamination after June 19, 1995, when there is a new family member, the owner shall follow the requirements of part 5, subpart E, of this title concerning obtaining and processing evidence of citizenship or eligible immigration status of the new family member. (c) Continuation of housing assistance payments. A family's eligibility for housing assistance payments will continue until the Total Tenant Payment equals the Gross Rent. The termination of eligibility will not affect the family's other rights under its lease, nor will such termination preclude the resumption of payments as a result of later changes in income, rents, or other relevant circumstances during the term of the Contract. However, eligibility also may be terminated in accordance with program requirements, for such reasons as failure to submit requested verification information, including failure to meet the disclosure and verification requirements for Social Security Numbers, as provided by part 5, subpart B, of this title, or failure to sign and submit consent forms for the obtaining of wage and claim information from State Wage Information Collection Agencies, as provided by part 5, subpart B, of this title. For provisions requiring termination of assistance for failure to establish citizenship or eligible immigration status, see part 5, subpart E, of this title for provisions concerning certain assistance for mixed families (families whose members include those with eligible immigration status, and those without eligible immigration status) in lieu of termination of assistance, and for provisions concerning deferral of termination of assistance. (d) Streamlined income determination. An owner may elect to follow the provisions of 24 CFR 5.657(d).
Under 24 CFR Part 886 § 886.124, housing assistance programs require that a family's income and household composition be formally reviewed at least once per year, with rent contributions and assistance payments adjusted accordingly. Between annual reviews, changes in income or household circumstances can trigger an interim reexamination that may also result in adjusted payment amounts. A family's eligibility for housing assistance payments continues until their required tenant contribution reaches the level of the full gross rent, though eligibility can also end for reasons such as failing to provide required verification documents, Social Security Number disclosures, or evidence of citizenship or eligible immigration status.
Plain English — not legal advice.
Operators administering assistance under 24 CFR Part 886 § 886.124 generally conduct annual reexaminations for every assisted family, collecting and verifying updated income and household composition data before recalculating Total Tenant Payment, Tenant Rent, and Housing Assistance Payment amounts. Compliant operators also monitor for mid-year changes in family income or circumstances, initiating interim reexaminations and consulting with the family when such changes come to their attention. Maintaining thorough documentation of Social Security Number disclosures, consent forms for wage and claim information, and citizenship or eligible immigration status verification for all family members—including new members added at interim reexaminations—is a standard part of operating within this framework.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 886 § 886.124, assisted families have the right to have their rent contribution recalculated whenever income or household circumstances change, meaning a drop in income can lead to a reduction in the amount owed. Families are generally required to report income changes as specified in their lease and to provide verification documents, Social Security Numbers, and immigration status evidence when requested; failure to do so can result in termination of assistance. Tenants who believe a reexamination was handled incorrectly or that their assistance was improperly terminated may benefit from contacting a local tenant-rights organization or HUD-approved housing counseling agency to understand available options, including whether a violation of this provision could be raised in a relevant proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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