U.S. · HUD housing
HUD adjusted income, after deductions.
Annual income minus the deductions federal rules require, so you can see what a housing authority starts from.
Adjusted income is annual income minus mandatory deductions. Under 24 CFR 5.611 those are $480 per dependent, $525 for an elderly or disabled family, unreimbursed medical and attendant-care costs above 10 percent of annual income (for elderly or disabled families), and reasonable child care needed to work or study. Housing authorities may add their own deductions.
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Result
The four mandatory deductions
| Deduction | Amount in 24 CFR 5.611(a) |
|---|---|
| Each dependent | $480 |
| Elderly family or disabled family | $525 (one per family) |
| Medical and attendant care | Unreimbursed costs above 10% of annual income |
| Child care | Reasonable costs needed to work or further education |
The rule says HUD adjusts the $480 and $525 amounts annually for inflation (CPI-W, rounded down to a multiple of $25). Ask your housing authority which amounts it applies this year.
Who counts as elderly or disabled
An elderly family is one whose head, co-head, spouse or sole member is at least 62. A disabled family is one whose head, co-head, spouse or sole member is a person with a disability (24 CFR 5.403). The medical-expense deduction applies only to these families, and attendant care is limited to what it lets family members earn.
Worked example
A household with annual income of $24,000, two dependents, an elderly head, $4,000 of unreimbursed medical costs and $1,200 of child care.
- Dependents: 2 × $480 = $960
- Elderly family: $525
- Medical: $4,000 − 10% of $24,000 ($2,400) = $1,600
- Child care: $1,200
- Total deductions $4,285, so adjusted income is $19,715.
Hardship relief the rule describes
Families who already received a medical deduction at the old 3 percent threshold as of January 1, 2024 get phased-in relief: the deduction applies above 5 percent of income, then 7.5 percent after twelve months, then 10 percent after twenty-four. Separately, a family with a hardship can get a deduction above 5 percent for up to 90 days, extendable by the housing authority (5.611(c)). The calculator above uses the standard 10 percent rule and does not model these.
What this does not decide
This is the deduction step only. It does not determine eligibility, rent, or whether income items are counted; those depend on 24 CFR 5.609 and your housing authority's policy.
Sources
Primary sources opened and checked on November 2, 2026. This page has no affiliation with any agency; confirm with the agency before you rely on an amount or date.
- Electronic Code of Federal Regulations, 24 CFR 5.611 Adjusted income. Read November 2, 2026.
- eCFR, 24 CFR 5.403 Definitions (elderly family, disabled family). Read November 2, 2026.
Frequently asked questions
What deductions come out of income to get HUD adjusted income?
Per 24 CFR 5.611(a): $480 for each dependent, $525 for an elderly or disabled family, unreimbursed medical and attendant-care expenses above 10 percent of annual income, and reasonable child care needed to work or study.
Is the elderly deduction $400 or $525?
The current regulation text reads $525 for any elderly family or disabled family. HUD adjusts the amount annually, so confirm the figure with your housing authority.
Who gets the medical expense deduction?
Only elderly families and disabled families. The deduction is the sum of unreimbursed medical and attendant-care costs that exceeds 10 percent of annual income.
Can a housing authority add other deductions?
Yes. For public housing and Housing Choice Voucher programs, a housing authority may adopt additional deductions in a written policy.
Does adjusted income set my rent?
This page only computes adjusted income. How rent is derived from it depends on the program and your housing authority.
Not legal, financial or benefits advice
This page summarizes federal regulation text and does not know your household or your housing authority's policy. Everything runs in your browser; nothing you enter is sent anywhere.