Who Pays What: Understanding Your Two Streams of Income

Once the Housing Assistance Payment (HAP) has been calculated, the final step is to break down exactly who pays what amount to whom. Your total monthly rent is typically comprised of two separate payments: one from the Public Housing Authority (PHA) and one from your tenant.

Understanding the distinction between the tenant’s total responsibility and the actual check they write to you is crucial for accurate bookkeeping and a smooth tenancy. Let’s break down the three key terms that define this cash flow.

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Family Share: The Tenant’s Total Contribution

The Family Share is the tenant’s portion of the Gross Rent. It represents the family’s total financial responsibility for their housing each month, which includes not just their portion of the rent paid to you, but also their estimated cost for utilities.

The calculation is straightforward:

Family Share = Gross Rent - HAP

Think of the Family Share as the tenant’s piece of the “all-in” housing cost pie. The PHA covers the rest with the HAP.

HAP to Owner & Family Rent to Owner: Your Two Income Streams

Your total Rent to Owner—the amount specified in your lease—is the sum of the two payments you receive.

1. HAP to Owner: This is the portion of the HAP subsidy paid by the PHA directly to you, the owner. In nearly all cases, this is the full HAP amount calculated by the PHA. It’s your predictable, on-time payment from the government.

2. Family Rent to Owner: This is the specific portion of the rent that the family pays directly to you. This is the check you collect from your tenant each month.

The formula for the tenant’s check to you is:

Family Rent to Owner = Family Share - Utility Allowance

If the owner pays all utilities, the Utility Allowance is $0, and the Family Rent to Owner will equal the Family Share.

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Putting it All Together: A Real-World Example

Let’s see how these components fit together using a clear example.

Scenario Data

• Rent to Owner (your lease rent): $1,400
• Utility Allowance (for tenant-paid electric): $150
• Gross Rent: $1,400 + $150 = $1,550
• Calculated HAP (from PHA): $1,100

The Breakdown

1. Calculate the Family Share:

   • Gross Rent ($1,550) - HAP ($1,100) = $450
   • This is the tenant’s total monthly housing responsibility.

2. Calculate the Family Rent to Owner:

   • Family Share ($450) - Utility Allowance ($150) = $300
   • This is the amount the tenant must pay you directly.

Your Monthly Income Breakdown

Source of Payment	Amount
Payment from PHA (HAP to Owner)	$1,100
Payment from Tenant (Family Rent to Owner)	$300
Total Received by Owner	$1,400

As you can see, the two payments add up perfectly to your contracted Rent to Owner. The tenant is still responsible for their full $450 Family Share, but $150 of it is conceptually set aside to pay their electric bill, while the remaining $300 is paid to you as rent.