Housing Cost Adjustment Calculator

The Housing Cost Adjustment Calculator helps families and staff accurately determine adjustments to gross income due to excessive housing costs (45 CFR §1302.12(i)). This tool simplifies the calculation process, aligning with the updated Head Start standards and eligibility rules. By factoring in excessive housing expenses, it ensures families in high-cost areas receive the appropriate adjustments to their income, improving access to Head Start services.

When determining whether a family is income-eligible, Head Start programs can use the Housing Cost Adjustment Calculator to calculate a possible adjustment to the family’s gross income. Head Start programs should consider the full eligibility standards in 1302.12, as this adjustment is only one factor in the broader eligibility determination process.

Instructions

Use this tool for calculating the excessive housing cost adjustment. Enter housing costs and income data as accurately as possible. If documentation for a specific type of housing cost is unavailable, leave the field blank. For “Payments per year,” enter the number of payments made each year for each expense. For example, “12” for monthly, “4” for quarterly, “1” for annual.
Reference the FAQs for detailed guidance on using the tool correctly. Links to family income guidelines and eligibility regulations are provided to support with compliance.
Review the results and incorporate them into the program’s broader eligibility determination process. Eligibility outcomes depend on accurate inputs and alignment with full eligibility determination requirements in 1302.12.

Disclaimer: This tool should be used alongside other relevant documentation and necessary steps taken as part of the full Head Start eligibility determination process. To determine the housing cost adjustment for a family, use the following formula:

If Total Housing Costs are greater than (Total Family Income x 0.30), then Adjusted Income = Total Family Income - (Total Housing Costs - (Total Family Income × 0.30)). Otherwise, the Total Family Income must not be adjusted.

Enter Your Information

Step 1: Income ℹ️ Calculate and enter total household gross income for the family and input it into the following field. Note the definition for "income" has been revised in Section 1305.2.

Total Annual Income

Step 2: Housing Costs ℹ️ Enter the payment amount and number of payments for housing costs listed using available bills, bank statements, and other relevant documentation provided by the family.

Monthly Housing Expenses

Housing costs means the total annual applicable expenses on housing which may include rent or mortgage payments, homeowner’s or renter’s insurance, utilities, interest, and taxes on the home. Utilities include electricity, gas, water, sewer, and trash.

For each line item below, enter the amount and number of payments made per year.

Rent or Mortgage

Payment Amount

Payments per year

Renter's or Homeowner's Insurance

Payment Amount

Payments per year

Property or Renter's Taxes

Payment Amount

Payments per year

Electricity

Payment Amount

Payments per year

Gas

Payment Amount

Payments per year

Water

Payment Amount

Payments per year

Sewer

Payment Amount

Payments per year

Trash

Payment Amount

Payments per year

Errors have occurred and are highlighted above. Please review and use the tooltips to guide you.

Results

Total Housing Costs :

30% of Total Household Income

Do housing costs exceed 30% of total household income?

Total Housing Deduction :

Adjusted Household Income :

(Use to Determine Eligibility)

For more information, go to the Federal Poverty Level Guidelines.

Note: This calculator provides an estimate for housing adjustment. Please speak with a Head Start representative for official determinations and provide supporting documents or go to our Contact Us page.