7 CFR §3560.203

1. (a)Tenant contributions. A tenant's contribution to rent charged for a rental unit in an Agency financed housing project is based on the tenant's income, as calculated on the Agency's tenant certification forms, and the availability of Agency or non-Agency rental subsidies.
   1. (1)Tenant contributions. Borrowers must set tenant contributions to rent at the highest of the following standards but never more than the note rent:
      1. (i)Thirty percent of monthly adjusted income;
      2. (ii)Ten percent of gross monthly income;
      3. (iii)An amount equal to the portion of an assistance payment specifically designated to meet the household's shelter costs if the household is receiving assistance payments from a public agency; or
      4. (iv)The basic rent, unless RHS rental assistance is provided to the household.
   2. (2)Tenant contribution surcharge. Tenants in a Plan I housing project with incomes above the eligibility standards set in § 3560.152(a)(1) must pay a 25 percent surcharge in addition to note rent.
2. (b)Adjustment of tenant contribution. Borrowers must adjust the tenant contribution whenever there is a change in tenant household status or income sufficient to generate a revised tenant certification in accordance with § 3560.152(e) or an Agency approved rent or utility allowance change that affects the tenant contribution amount.
3. (c)Overage. If a tenant's tenant contribution is higher than basic rent, borrowers must remit to the Agency the rent collected in excess of the basic rent and up to the note rent.