How to Claim the HUD Elderly and Disabled Family Deduction

The HUD elderly and disabled family deduction is a $550 subtraction from your household’s annual income in 2026, applied before your rent share is calculated in the Section 8 Housing Choice Voucher and Public Housing programs.¹ To claim it, the head of household, co-head, spouse, or sole member has to be at least 62 or a person with a disability, and you’ll verify that status through your Public Housing Agency at intake and again at each annual recertification. The flat $550 is modest on its own. The reason to make sure it’s applied is that qualifying as an elderly or disabled family also opens the door to medical expense and disability assistance deductions that other households cannot claim.

Who Qualifies

Your household is an “elderly family” if the head, co-head, spouse, or sole member is at least 62 years old. No one else in the home needs to meet the age threshold, and a single person aged 62 or older living alone qualifies because HUD’s definition of “family” includes a sole individual.²

Your household is a “disabled family” if the head, co-head, spouse, or sole member is a person with a disability under any of three pathways:

The person has a disability as defined under the Social Security Act (42 U.S.C. 423).
The person meets HUD’s three-part test: a physical, mental, or emotional impairment expected to last indefinitely, that substantially limits the ability to live independently, and that could be improved by more suitable housing.
The person has a developmental disability as defined in 42 U.S.C. 6001.

HIV/AIDS does not disqualify anyone. A disability based solely on drug or alcohol dependence does not count for this purpose.³

Only one deduction applies per household, even if both the head and spouse qualify. A live-in aide is not counted as a household member for purposes of qualifying, though a live-in aide’s income is excluded from your annual income calculation.

What the $550 Actually Saves You

Federal housing programs use a Total Tenant Payment (TTP) formula. Your TTP is the highest of:

30 percent of monthly adjusted income
10 percent of monthly gross income
The welfare rent, in states that designate one
The Public Housing Agency’s minimum rent, up to $50

Whichever is largest becomes your TTP.⁴ The $550 reduces adjusted income, which reduces the 30-percent figure — the number that usually controls for elderly and disabled households.

A rough example. Gross annual income of $15,000. Without the deduction, 30 percent of monthly income is $375. Subtract the $550 first (adjusted income $14,450), and the monthly figure drops to about $361. That’s around $14 a month from the flat deduction alone. The bigger savings usually come from the two deductions the $550 qualifies you for.

For context, the deduction sat at $400 for decades before the Housing Opportunity Through Modernization Act of 2016 (HOTMA). When HOTMA’s income provisions took effect in 2024 the amount jumped to $525, and it now adjusts every January based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded down to the nearest $25.⁵

Medical Expense Deduction

Only elderly and disabled families can claim this one, and it’s often where the meaningful savings sit. Qualifying costs include insurance premiums, prescription medications, dental care, long-term care premiums, and any expense related to diagnosing, treating, or preventing a medical condition.⁵

Under HOTMA, you deduct the portion of unreimbursed medical expenses that exceeds 10 percent of annual income.⁶ If annual income is $14,000 and unreimbursed medical costs total $3,000, the first $1,400 isn’t deductible but the remaining $1,600 is subtracted from income before rent is calculated.

The 10-percent threshold replaced an older 3-percent threshold. HUD phased in the change over three years starting in 2024: 5 percent in the first year, 7.5 percent in the second, and 10 percent in the third. Households that began the phase-in in 2024 hit the full 10-percent threshold in 2026.

Hardship Relief if the 10 Percent Hurts

Two options exist. Families already receiving a medical expense deduction as of January 1, 2024, got automatic phased relief — 5 percent in year one, 7.5 percent in year two — lasting 24 months.⁷ Separately, any family struggling to pay rent because of increased expenses or changed circumstances can request a general financial hardship exemption, which drops the threshold to 5 percent of annual income. That exemption runs 90 days and your PHA can extend it in additional 90-day periods while the hardship continues.

Disability Assistance Expense Deduction

Elderly and disabled families can also deduct unreimbursed costs for attendant care and assistive equipment, but only to the extent those expenses let a family member work.⁵ The care or equipment must be for a family member with a disability, and it must make it possible for someone in the household (including the disabled member) to hold a job. You can’t deduct payments made to another family member, and anything reimbursed by insurance is out.

Two caps apply. Only the amount above 10 percent of annual income is deductible. And the deduction cannot exceed the combined earned income of adult family members (18 and older) who are able to work because of that care or equipment.⁸ If a personal care aide costs $6,000 a year and enables a family member to earn $5,000, the deductible amount is capped at $5,000 before the 10-percent threshold is applied.

Documents to Bring

Age

A birth certificate or government-issued photo ID showing the head, co-head, or spouse is at least 62. Missing or unclear documents are the most common reason for delays.

Disability

The cleanest proof is a Social Security Administration award letter confirming SSI or SSDI. That’s enough on its own.

If nobody receives SSI or SSDI, your PHA provides a verification form (HUD Form 90103 or a local equivalent) for a licensed medical professional to complete.⁹ The form asks the provider to confirm the impairment is expected to last indefinitely, substantially limits independent living, and could be improved by better housing. Every field needs to be filled in. Incomplete forms come back for redo.

Medical and Disability Assistance Expenses

Keep receipts, billing statements, insurance explanation-of-benefit forms, and pharmacy records showing out-of-pocket amounts. Also insurance premiums, co-pays, transportation to medical appointments, and any attendant care costs. Your PHA needs these to figure how much exceeds the 10-percent-of-income threshold.

Assets

Under HOTMA, if your household’s total net assets are $52,787 or less in 2026, your PHA may accept a signed self-certification instead of bank statements and other third-party verification.¹ Whether an agency uses this option is up to them. Even when self-certification is accepted, the agency must verify assets through third-party sources at least every three years.¹⁰

Submitting and Renewing the Claim

You submit everything to your PHA caseworker. Most agencies accept documents through a secure online portal, by mail, or at an in-person appointment. The caseworker checks the documents against federal requirements and applies the deduction to your annual income before calculating your rent share.

The deduction isn’t a one-time approval. Every year, your household goes through recertification and your income, family composition, and qualifying status are verified again. The deduction continues as long as the head, co-head, spouse, or sole member still meets the age or disability criteria and remains in the household. Keep copies of everything you submit.

Interim Reviews Between Recertifications

You don’t have to wait for the annual review. PHAs must process an interim reexamination whenever a family requests one.¹¹ Ask for one if income drops, a household member becomes disabled, or the head of household turns 62 mid-year and your family now qualifies. Reporting these changes promptly gets your rent recalculated sooner.

If the PHA Gets It Wrong

If your PHA fails to apply the elderly and disabled family deduction, miscalculates your medical expenses, or otherwise overcharges you, federal regulations require the agency to correct the error and credit or repay you for the overcharge.¹² Even small errors count. HUD defines a “de minimis error” as a miscalculation of $30 or less per month in adjusted income, and those still have to be fixed.

The reverse doesn’t apply. If the agency’s mistake results in you being undercharged, you are not required to repay the difference.¹² If you suspect your deduction wasn’t applied correctly, ask your caseworker to walk through the rent calculation with you. You’re entitled to see exactly how your adjusted income was computed.

A Note on HOTMA Asset Limits

Qualifying for the deduction is one thing. Staying eligible for assistance at all is another. HOTMA introduced net asset limits: a household with net family assets exceeding $105,574 in 2026 can be denied assistance at admission, and the threshold is adjusted annually for inflation.¹ Owning real property suitable for your family to live in can also disqualify you, though HUD carves out exceptions for manufactured homes on leased lots, joint ownership with a non-resident co-owner, families that include a victim of domestic violence, and property actively listed for sale.¹³ These limits sit outside the deduction itself, but they can determine whether the deduction ever gets applied to your file.

1
HUD User. 2026 HUD Inflation-Adjusted Values
2
eCFR. 24 CFR 5.403 – Definitions
3
eCFR. 24 CFR 5.403 – Definitions
4
U.S. Department of Housing and Urban Development. Housing Choice Voucher Program Guidebook – Calculating Rent and HAP Payments
5
eCFR. 24 CFR Part 5 Subpart F – Section 8 and Public Housing
6
HUD Exchange. HOTMA Resident Fact Sheet – Health, Medical, and Childcare Deductions
7
HUD Exchange. HOTMA Hardship Exemptions Resource Sheet
8
eCFR. 24 CFR 5.611 – Adjusted Income
9
U.S. Department of Housing and Urban Development. Verification of Disability
10
U.S. Department of Housing and Urban Development. HOTMA Net Family Assets
11
U.S. Department of Housing and Urban Development. Housing Choice Voucher Program Guidebook – Reexaminations
12
eCFR. 24 CFR Part 960 Subpart C – Rent and Reexamination
13
U.S. Department of Housing and Urban Development. PIH 2023-27 – HOTMA Implementation Guidance