HUD Handbook 4350.3 § 3-8
Admitting Over-Income Applicants (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
HUD guidance — not codified law
In Force
Verified 9/24/2026 · Next check 10/1/2026
effective 9/24/2026FederalSection 8 Project-BasedOperative Text
HUD Handbook 4350.3 § 3-8
This paragraph describes the circumstances under which a property owner may admit
families that do not meet income limits. The exceptions are listed by program.
A. Section 8, Section 202/8, Section 202 PAC, Section 202 PRAC and Section
811 PRAC Units
If the owner is temporarily unable to lease all units to income eligible families, he
may admit applicants with incomes that exceed the applicable program income
limits with prior written HUD approval. The owner must request HUD approval as
follows:
1. For units with Section 8 assistance, the request must be submitted to the
Field Office in accordance with the procedures above in paragraph 3-7.
2. For units with Section 202/8 or Section 202 PAC assistance, the owner
must submit the information specified in Situation #6 of Exhibit 3-1 to the
Field Office. (See paragraph 3-20.G.)
3. For Section 202 or Section 811 PRAC units, the owner must submit the
information specified in Situation #6 of Exhibit 3-1 to the Field Office. The
Field Office will forward the waiver request with a recommendation to
HUD Headquarters for the final decision on the approval. (See
paragraph 3-20.G)
4. For Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811
PRAC, also see paragraph 3-20.G for a discussion of waiver requests for
approval to rent to families that are not elderly or disabled.
B. BMIR Units
The owner must not admit income-ineligible applicants without prior written HUD
approval. Any ineligible families that are admitted must pay market rent.
C. Section 236, Rent Supplement, and RAP Units
1. In some situations, owners may admit families with incomes that exceed
the applicable program income limits to Section 236, Rent Supplement, or
RAP units without HUD approval if there are no income-eligible applicants
available and fewer than 10% of the units are already occupied by tenants
paying market rent.
2. Any ineligible families that are admitted must pay market rent.
Example – Admission of Market Rent Applicants
Brookside Gardens is a 100-unit Section 236 project. Currently 92 tenants
pay basic rent, 5 tenants pay market rent, and 3 units are vacant. The
owner may fill the 3 vacant units with tenants paying market rent if there
are no income-eligible applicants available and the owner has taken all
reasonable steps to attract eligible families.
Shady Grove is a 100-unit Section 236 project where 88 current tenants
pay basic rent and 10 tenants pay market rent. The owner must fill the 2
current vacancies with income-eligible tenants.
3. The owner must obtain HUD's approval to admit over-income applicants
who pay market rent if at least 10% of the units authorized under the
interest reduction subsidy are already occupied by tenants paying market
rent.
4. For determining the 10% of units described in subparagraphs 2 and 3
above, a unit is defined as follows:
a. For properties with Rent Supplement or RAP, “units” include only
those units covered by the RAP or Rent Supplement contract.
b. For Section 236 properties, “units” include all units in the project.
5. Before admitting any ineligible applicants, the owner must take the
following steps:
a. Admit all available eligible applicants, unless there is good cause
for denying assistance.
b. Take all reasonable steps to attract eligible families, including
using marketing activities most likely to attract eligible applicants
and marketing outside the community or immediate area.
c. Place in the file of any ineligible tenant who is admitted, a written
certification indicating that the requirements in subparagraphs a
and b above have been completed.
D. Admission of Police Officers or Security Personnel in Section 8 Properties
1. For the purpose of deterring crime in and around the property, owners
may lease a Section 8 unit to a police officer or security personnel who is
over the income limits. Security personnel is defined as a qualified
security professional with adequate training and experience to provide
security services for project residents.
2. To be eligible, the police officer or security personnel must be employed
full-time (at least 35 hours per week) by a governmental unit or private
employer and be compensated by their employer for providing policing or
security services.
3. Owners must submit a written plan to their HUD Field Office or Contract
Administrator for authorization to lease to over-income police or security
personnel. The plan must include:
a. A description of the existing social and physical conditions of the
property and its surrounding area, and the benefits police or
security would bring to the community and property;
b. The number of units in the property;
c. A detailed assessment of the criminal activities and how the safety
of the tenants and security of the project is affected;
d. The qualifications of the police or security personnel and length of
residency;
e. A description of how the owner proposes to check the background
and qualifications of any security personnel who will reside in the
project;
f. Disclosure of any family relationship between the police officer or
security personnel and the owner. The owner includes all
principals or other interested parties;
g. A description of the proposed rent, the current contract rent to the
unit, the owner’s annual maintenance cost for the unit and the
amount of any other compensation by the owner to the resident
police or security personnel. See paragraph 5-27 for guidance on
establishing rent; and
h. Owner or authorized agent signature.
4. Police officers and other security personnel that reside in subsidized units
are subject to the same screening criteria as other applicants.
5. The owner may use the applicable model lease with an added provision
that states that the right of occupancy is dependent on continued
employment as a police officer or security personnel. (See paragraph 6-
12 C for more information)
6. HUD or the Contract Administrator should notify the owners of approval or
rejection within 30 days of submission. Unless there are extenuating
circumstances, the local HUD Office should approve no more than 1% (or
one unit if the property is less than 100 units) of the assisted units on the
property for leasing to police or security personnel.Source: Legislative text reproduced verbatim
Effective Timeline
Current
Sep 24, 2026
Click on timeline segments to view historical versions.
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.
Related Rules
§ 888.111
§ 888.111 Fair market rents for existing housing: Applicability.
§ 888.201
§ 888.201 Purpose.
§ 888.202
§ 888.202 Manner of publication.