THDA counts most disability income your child receives, but the way it counts depends on the program

THDA (Tennessee Housing Development Agency) does count disability income when you explore for housing information. However, whether that income affects your housing allowance depends on which THDA program you are using and how the income is structured. Some programs count all of it. Others exclude certain types of disability payments or allow deductions that reduce the amount counted.

The key difference is between earned income (money your child receives for work) and unearned income (money your child receives from benefits like SSI or SSDI). THDA treats these differently, and the rules also vary between THDA's rental information programs and its homeownership programs.

Key Takeaways

  • THDA counts your child's disability income as part of household income, which directly affects the rent amount you pay or the information you receive.
  • SSI and SSDI payments are counted as unearned income, but THDA may exclude the first $65 per month plus half of the remainder under certain programs.
  • If your child has earned income from work, THDA typically excludes the first $65 per month and then counts only 50 percent of the rest.
  • The exact rules depend on which THDA program you are in, so you must ask your case manager which income exclusions explore to your situation.
  • Reporting changes in your child's disability income is required, and failing to report can result in overpayment demands or program termination.

How THDA defines household income

When you explore for THDA housing information, the agency calculates your household income by adding up what everyone in your home earns or receives. This includes wages, self-employment income, Social Security benefits, SSI, SSDI, child support, unemployment, pensions, and other regular payments. Your child's disability income counts as part of this total.

THDA uses household income to determine two things: whether you meet the income limits for the program, and how much rent you will pay or how much information you will receive. A higher household income usually means a higher rent contribution from you and less information from THDA. This is why the way disability income is counted matters—it directly affects your monthly housing costs.

Income exclusions for disability payments

THDA does not count all disability income dollar-for-dollar. Depending on the program, the agency applies income exclusions that reduce the amount of disability income counted toward your household total.

For unearned income like SSI or SSDI, many THDA programs exclude the first $65 per month and then count only 50 percent of anything above that. This means if your child receives $800 per month in SSDI, THDA would exclude $65, leaving $735, and then count only half of that ($367.50). Your household income would increase by $367.50, not $800.

However, not all THDA programs use this exclusion. Some programs count all unearned income without any exclusion. The program you are in determines which rule applies. You must ask your THDA case manager or housing provider which exclusions are in effect for your specific program.

Earned income versus unearned income

If your child is old enough to work and receives wages or self-employment income in addition to disability benefits, THDA treats that earned income differently from the disability payments themselves.

For earned income, THDA typically excludes the first $65 per month and then counts only 50 percent of the remainder. Work-related expenses like transportation or childcare may also be deducted before the income is counted. This is meant to encourage people to work without losing all their housing information.

The disability payment itself (SSI or SSDI) is treated as unearned income and follows the unearned income rules described above. So your child's total income to THDA would be calculated separately for the disability payment and any wages, with each following its own exclusion rules.

What happens when disability income changes

If your child's disability income increases, decreases, or stops, you must report the change to THDA within the timeframe specified in your lease or information agreement—usually 10 to 30 days. Failing to report changes can result in serious consequences.

If you do not report an increase in income and THDA later discovers it, the agency may demand repayment of the difference between what you should have paid and what you actually paid. This is called an overpayment, and you may be required to repay it in full or through a payment plan. If you do not report a decrease in income, you may be paying more rent than you should, which means you are losing money.

Keep copies of any letters from Social Security showing changes to your child's benefit amount, and contact your THDA housing provider when ready when you receive them.

Different rules for different THDA programs

THDA runs several different housing programs, and the income rules are not identical across all of them. The agency's rental information programs, homeownership programs, and tax credit properties may each have slightly different income exclusion policies.

Before you assume how your child's disability income will be counted, ask your case manager or housing provider which specific program you are in and request a written explanation of how income is calculated. Some programs may be more favorable to your situation than others, and knowing the exact rules protects you from surprises when your rent is set or your information is calculated.

How to report your child's disability income

When you first explore for THDA housing information, you will need to provide proof of your child's disability income. This usually means submitting a recent award letter from Social Security (for SSI or SSDI), a current benefits statement, or a letter from the benefits-paying agency showing the monthly amount.

Keep these documents and update them when they change. If your child's benefit amount changes, Social Security will send a new award letter or notice. Submit this to your THDA housing provider as soon as you receive it. Do not wait until your next annual recertification—report it right away.

If your child's disability status changes and the benefits stop, report that when ready as well. THDA will recalculate your household income and may lower your rent contribution or increase your information.

Frequently Asked Questions

Will my child's SSI or SSDI reduce the amount of THDA information I get?

Yes, it will increase your household income, which typically increases the rent you pay or reduces the information you receive. However, THDA may exclude the first $65 per month and count only half of the rest, depending on your program. Ask your case manager for the exact calculation.

What if my child turns 18 and their benefits change?

When a child turns 18, Social Security may recalculate their benefits based on their own work history rather than their parent's. Report any change in benefit amount to THDA when ready. The new amount will be counted as household income under the same rules as before.

Can I hide my child's disability income to keep my rent lower?

No. You are required to report all income, including disability payments. Failing to report income is fraud and can result in eviction, repayment demands, and criminal charges. It is not worth the risk.

Does THDA count my child's disability income if they live with me but are not on the lease?

Yes. THDA counts income from anyone living in the household, whether or not they are on the lease. You must report all household members and their income when you explore and when anything changes.

What if my child receives both SSI and earned income from a job?

Both are counted as household income, but each follows its own exclusion rules. The SSI follows unearned income rules (first $65 excluded, then 50 percent of the rest counted). The wages follow earned income rules (first $65 excluded, then 50 percent of the rest counted, plus work-related deductions). Ask your case manager to show you the full calculation.