Home Forward, the city of Portland’s housing authority, plans to increase the portion of income the vast majority of its tenants and voucher holders must pay on rent in an effort to close an estimated $31 million budget gap.
Unlike how a rent increase typically works for market-rate housing, the agency’s plan is to require its clients and tenants to pay a greater portion of their monthly income on rent and lower the agency’s portion.
For instance, if a tenant currently pays 28% of their monthly income on rent, under the new policy they will pay 31%. While that’s just a 3-point increase for the tenant, it translates to much more than a 3% increase in actual rent. For someone who currently pays $285 per month of their $1,000 monthly income toward rent (so 28.5% of their monthly income), instead they may have to pay 31.5%, or $315 per month. That’s a 10.5% rent increase. For someone with a monthly income of $2,100 paying 28.5% on a $1,400 rent, paying 31.5% of their income would amount to an 18% rent increase…