Tenants can be notoriously bad at budgeting, which means a lot of the time, they do not have enough money to pay their rent on time. If you fall behind on your rent, you could end up in some serious trouble with your landlord, especially if you move out and leave the rent unpaid. One way to prevent this from happening is to make sure you know the TTP (Total Tenant Payment) for each unit you have been considering.
The total tenant payment amount is calculated by multiplying the FMR (Fair Market Rent) for a family’s size and the utility allowance, which is based on the income of the family. The resulting TTP (total tenant payment) amount then becomes the payment standard for the family.
In the Low Income Housing Tax Credit (LIHTC) program, the total tenant payment (TTP) represents the minimum amount a family must contribute towards rent and utilities regardless of the unit selected. The TTP payment is used to calculate a project’s minimum rent, which is the rent a family must pay to lease a unit. The TTP does not include the rent incentives that may be offered to families to select a unit. However, the TTP payment does include utilities and other rent-related allowances, such as a reasonable utility allowance and a security deposit allowance.
What Is The Difference Between TTP and Total Rent?
Total rent is the monthly amount of money that a tenant pays to a landlord for the right to occupy an apartment. Total rent includes rent, tenant paid utilities and other fees that the tenant is obligated to pay, such as a security deposit. TTP is the sum of the total income of a family, fewer taxes paid, plus the value of in-kind benefits, subsidies, and other non-cash benefits. It is also the rent limit that determines whether a housing voucher can cover the cost of the rent. If the TTP is above the rent limit, the tenant is responsible for paying the difference. If the TTP is below the rent limit, the voucher makes up the difference.
Total Tenant Payment is the greater of:
- 10% of monthly gross income
- 30% of monthly adjusted income
- The minimum rent amount of IHA is $50
- Welfare rent (if the household receives public assistance)
To know more about Total Tenant Payment (TTP), attend the Compliance Prime webinar. This webinar will also cover topics like what is and what is not included in annual income, assets included, assets not included, determining and calculating adjusted income, calculating tenant rent, and much more.
