According to the Multi-Family Properties Affordability Calculation Rule, how is a Member's income treated?

In the context of the Multi-Family Properties Affordability Calculation Rule, the treatment of a Member's income is nuanced. The rule specifies that the income is not solely calculated based on rental income from the property. Instead, it focuses on how the rental income impacts the financial responsibilities of the Member, particularly in relation to Principal, Interest, Taxes, and Insurance (PITI).

By stating that the income does not include rental income but rather reduces PITI, the rule highlights that while rental income may play a role in the overall financial landscape of the property, it is not added directly to the Member's income for qualifying purposes. Instead, the rental income helps in offsetting the costs associated with the mortgage and other property-related expenses. This approach allows for a more realistic understanding of the financial obligations that the Member can manage based on their personal income, without overstating their ability to pay by including rental income as part of their qualifying earnings.

This perspective is crucial in ensuring that Members are not over-leveraged and can sustain their investments in multi-family properties without unrealistic assumptions concerning rental income.