of— (A) 60 percent of local median income, or (B) 150 percent of the Federal poverty line, in each case as determined by the Secretary of Housing and Urban Development for a family of the size involved. (3) Rent reduction amount For purposes of this section— (A) In general The term rent reduction amount is the amount by which the fair market rent for the unit involved exceeds the rent charged to the qualified renter. (B) Limitation The rent reduction amount taken into account under this section shall not exceed the excess of— (i) the rent charged to the qualified renter (or, if lower, specified modest rent), over (ii) 30 percent of the qualified renters income (prorated monthly) as determined by the renters credit agency of the State. (C) Specified modest rent The term specified modest rent means— (i) the Fair Market Rent determined by the Secretary of Housing and Urban Development for the ZIP code (if the unit is located in a metropolitan area) or non-metropolitan county, or (ii) such amount as may be determined by the State with respect to the area in which the unit is located if such amount is within 25 percent of the amount determined under clause (i) with respect to such unit. (D) Utilities The renters credit agency of the State may determine whether and how to take into account the cost of utilities in determining the rent reduction amount. (E) Credit adjustment The renters credit agency of the State may elect to increase the rent reduction amount such that such amount does not exceed 110 percent of such amount as determined without regard to this subparagraph. (c) Qualified credit recipient For purposes of this section, the term qualified credit recipient means, with respect to any rental unit occupied by a qualified renter, the owner of such unit but only to the extent of the renters credit amounts which have been allocated to such person by the renters credit agency. In lieu of the owner of the unit, the renters credit agency may treat the lender of any loan to such owner as the qualified credit