{"data":{"id":"us/7-cfr-3560.203","jurisdiction":"us","citation":"7 CFR 3560.203","heading":"Tenant contributions.","body":"(a) Tenant contributions. A tenant's contribution to rent charged for a rental unit in an Agency financed housing project is based on the tenant's income, as calculated on the Agency's tenant certification forms, and the availability of Agency or non-Agency rental subsidies.\n(1) Tenant contributions. Borrowers must set tenant contributions to rent at the highest of the following standards but never more than the note rent:\n(i) Thirty percent of monthly adjusted income;\n(ii) Ten percent of gross monthly income;\n(iii) An amount equal to the portion of an assistance payment specifically designated to meet the household's shelter costs if the household is receiving assistance payments from a public agency; or\n(iv) The basic rent, unless RHS rental assistance is provided to the household.\n(2) Tenant contribution surcharge. Tenants in a Plan I housing project with incomes above the eligibility standards set in § 3560.152(a)(1) must pay a 25 percent surcharge in addition to note rent.\n(b) Adjustment of tenant contribution. Borrowers must adjust the tenant contribution whenever there is a change in tenant household status or income sufficient to generate a revised tenant certification in accordance with § 3560.152(e) or an Agency approved rent or utility allowance change that affects the tenant contribution amount.\n(c) Overage. If a tenant's tenant contribution is higher than basic rent, borrowers must remit to the Agency the rent collected in excess of the basic rent and up to the note rent.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XXXV—RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE","PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS","Subpart E—Rents"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"0e601bb8cc825cf67c672b634767843f2399c85c671aea83ef4df4e36d09f2bc","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-3560.202","next":"us/7-cfr-3560.204"},"notice":"GroundRules: Original legal text. Not legal advice."}