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Can you please tell me the basis for qualifying for Section 8 housing for my elderly parent? Is it based on income or all resources (including non-cash funds). Thank you.

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What state? They all have different rules. PHA will collect information on family income, assets, and family composition. The PHA will verify this information with other local agencies, your employer and bank, and will use the information to determine program eligibility and the amount of the housing assistance payment
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You have to make less than 60% of your area median income. This varies from county to county. Plus if your income is even lower, say 30% of the median income, you have better chances of getting in. Then there is the number of bedrooms you qualify for. A couple gets one bedroom. A couple with two children of the same sex gets two bedrooms. But if there is a boy and a girl, three bedrooms.
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On the positive side, your parent would spend only 30% of their income for a one bedroom apartment. Senior housing usually has a waiting list.
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This question pertains to Pennsylvania.
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