Housing Counselor Certification (HUD) Practice Exam

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Prepare for the Housing Counselor Certification Exam (HUD). Use flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

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A client has a monthly household income of $2,300, monthly debt payments of $450, and an optimal monthly housing ratio of 32%. What is the client's optimal monthly housing payment?

$450
$736
$800
$900

The correct answer is: $736

To determine the optimal monthly housing payment, the housing ratio is applied to the client’s monthly household income. The optimal housing ratio is defined as the percentage of gross monthly income that can comfortably be allocated to housing expenses. In this scenario, the client has a monthly household income of $2,300 and an optimal housing ratio of 32%. To calculate the optimal monthly housing payment, you would multiply the monthly income by the housing ratio: $2,300 (monthly income) x 0.32 (housing ratio) = $736. This result indicates that the client should ideally spend $736 on housing expenses each month. This amount is designed to ensure financial stability while maintaining affordability in regards to housing costs. Thus, the correct answer reflects the calculated optimal monthly housing payment based on the given income and housing ratio.