Adjusting for Excessive Housing Costs

Overview The infographic illustrates a three-step scenario of how a new housing deduction rule affects a family’s eligibility for Head Start services.

Part 1: Initial Income vs. Poverty Line

  • Family Income: A bar chart shows a family makes a gross income of $40,000.
  • Poverty Line: A dotted line indicates the Federal Poverty Line is $37,650.
  • Result: Because the family’s $40,000 income is above the $37,650 poverty line, a large red “prohibited” symbol (a circle with a diagonal slash) indicates they are initially not eligible for Head Start Services.

Part 2: The Housing Deduction Calculation

  • Headline: Head Start Programs can now Deduct Housing Expenses OVER 30% of a Family’s Income.
  • Current Housing Cost: A pie chart shows the family spends 50% of their gross income ($40,000) on housing, which equals $20,000.
  • Baseline Deduction Limit: A second pie chart shows that 30% of their gross income would be $12,000.
  • The Adjustment Equation: The infographic subtracts the 30% baseline ($12,000) from their actual housing expenses ($20,000) to find the deductible amount: $20,000 – $12,000 = $8,000. This makes the final Housing Adjustment $8,000.

Part 3: Adjusted Income and New Eligibility

  • New Income Level: A final bar chart shows the original $40,000 gross income dropping by the $8,000 adjustment, resulting in a NEW Adjusted Income of $32,000.
  • New Result: Because the adjusted income of $32,000 is now below the Federal Poverty Line of $37,650, a large green checkmark indicates the family is now Eligible for Head Start Services.

Back to A New Opportunity For Enrollment page.