HUD Handbook 4350.3 § 5-4
Key Requirements (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Annual income is the amount of income that is used to determine a family’s
eligibility for assistance. Annual income is defined as follows:
1. All amounts, monetary or not, that go to or are received on behalf of the
family head, spouse or co-head (even if the family member is temporarily
absent), or any other family member; or
2. All amounts anticipated to be received from a source outside the family
during the 12-month period following admission or annual recertification
effective date.
B. Annual income includes all amounts that are not specifically excluded by
regulation. Exhibit 5-1, Income Inclusions and Exclusions, provides a list of
income inclusions and exclusions published in the regulations and Federal
Register notices.
C. Annual income includes amounts derived (during the 12-month period) from
assets to which any member of the family has access.HUD Handbook 4350.3 REV-1 CHG-4 § 5-4 establishes how 'annual income' is defined for purposes of determining a household's eligibility for federal housing assistance. It encompasses all monetary and non-monetary amounts received by or on behalf of any family member—including the head, spouse, co-head, or others—as well as amounts anticipated from outside sources over the coming 12-month period. Income derived from assets accessible to any family member is also counted, and everything not specifically excluded by regulation is included by default, with Exhibit 5-1 providing the governing list of inclusions and exclusions.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 5-4, compliant property owners and managers conducting eligibility determinations and annual recertifications account for the full scope of household income, including non-monetary compensation and anticipated outside income over the upcoming 12-month period. Operators typically cross-reference Exhibit 5-1 to confirm which income types are included or excluded before finalizing a household's income calculation. Thorough documentation of all income sources—including asset-derived income accessible to any family member—is a standard part of maintaining compliance with HUD program requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 5-4 defines the income that housing providers must consider when determining your household's eligibility for assistance and at each annual recertification. Tenants have a right to understand which income sources are counted and which are excluded under the regulations, as detailed in Exhibit 5-1, and may request clarification from their property manager or local HUD office if they believe their income was calculated incorrectly. If a household believes an income determination was made in error, options may include requesting an informal hearing, contacting the U.S. Department of Housing and Urban Development, or reaching out to a local tenant-rights organization for general guidance.
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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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