Earned Income Disregard (HUD)

Earned Income Disregard Information

Earned Income Disregard (also known as Earned Income Disallowance) The earned income disregard (EID) enables
people with certain HUD rental subsidies to go to work without having the person’s rent increase immediately. HUD phases in the rent increase over time.

Who is eligible?

  • Adults with and without disabilities in public housing
  • Adults with disabilities who receive assistance from the
    • Housing Choice Voucher program
    • HOME Investment Partnerships program
    • Housing Opportunities for Persons with AIDS
    • (HOPWA) program
    • Project-Based Section 8 Voucher (but not all)

When Does the EID Apply?

  • Newly employed and the family’s income increases as a result
  • Has increase in earnings during participation in a self-sufficiency or other job training program (i.e.; IPS program)
  • Newly employed or increase his/her earnings during or within 6 months after receiving TANF-funded assistance

How Does it Work?

  • During 1st 12 months, the increase in income is fully excluded. (The 12 months are not necessarily consecutive if the worker doesn’t work every month.)
  • During the 2nd 12 months, 50% of the increase is excluded.
  • The 24 months of EID must be used within 24 consecutive months. If not all 24 months are used within the 24-month period, the EID is still exhausted.
  • After the EID has been used up, the exclusion ends –the family rent is based on family income, including all of the earnings.
For more information on this program please contact the local housing authority office near you.