EDRA Housing Cost Increases

What is a housing cost?

Housing costs include expenses that you pay to your landlord in addition to rent for your home.  These will vary depending on your specific rental agreement and the resources/services offered with your housing. 

Examples

Common housing costs 

  • Pet rent
  • Parking
  • Storage

Potential housing costs (if paid to the landlord or part of your rental agreement)

  • Internet 
  • Cable 
  • Fixed utility fees

How do I calculate a 10% housing cost increase?

Your landlord must give you a 180 day advance written notice to increase your housing costs by any amount.  If you are income-eligible, you may qualify for EDRA if the total amount of your housing cost increases by 10% or more over 12 months. 

This increase could be the result of one notice equaling or exceeding 10% or multiple notices that when added together equal or exceed 10% within a 12 month period.  These are examples to illustrate how to calculate an increase and when EDRA would and would not apply.

Example 1.

Jones Household

$1,350 rent + $100 pet rent + $75 parking + $50 storage = $1575 total current monthly housing costs paid to the landlord

Jan 1 - The Jones houshold receive a 180 day notice increasing the total monthly housing cost to $1775

How to calculate the percentage of the increase

  1. Subtract the current total from the new total ($1775 - $1575 = $200)
  2. Divide the increase amount by the current housing cost ($200 / $1575 = 0.127).
  3. Move the decimal point two places to the right to find the percentage 0.127 becomes 012.7 making the increase = 12.7

EDRA will apply to the Jones' household because the increase exceeds 10% within 12 months.

Example 2.

Rodriguez Household

$2,000 rent + $100 wifi + $150 parking = $2,250 total monthly housing cost paid to the landlord

    June 1 - Rodriguez household receives a 180 day notice that housing costs will increase to $2450 effective December 1

    1. $2450 - $2250 = $200 (amount of increase)
    2. $200 / $2250 = 0.088 (increase amount divided by current housing cost)
    3. 0.088 becomes 08.8 making the increase = 8.8% (move the decimal two spaces to the right)

    EDRA does not apply as the increase is less than 10%.

    November 1 - landlord serves the Rodriguez household another 180 day notice that increases housing costs to $2500 effective May 1

    1. $2500 - $2450 = $50 (amount of increase)
    2. $50/$2450 = 0.020 (increase amount divided by current housing cost)
    3. 0.020 becomes 02.0 = 2% 

    EDRA does apply to the Rodriguez' household with the second increase of 2%. Added to the first increase of 8.8% it equals 10.8%, which exceeds 10% within a 12 month period.

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