We are HUD housing and we DO include tips as cash income. That being said, GETTING that info is another story. However, if their paystubs do not show tips, we usually send out an Employment Verification form to the employer and ask, among other things, their hourly wage and their tips. Here the employer is required to show income of at least minimum wage (for their W-2s)...so if they pay $3/hr. then the tips need to make up the difference. So in most cases the verification will show that they are earning min wage. If they make "good" tips the employer will oft times list the hourly and the ave. tips per hour or day as well.

Income sources should be listed on the Resident Qualifying criteria for your property or Management Company. In Some states Income types are protected. Fair housing guidelines should be considered and consistency is key.

I ask for a letter from mgmt on letterhead stating what there average monthly income is.

If they have 3 months of cash tips that average and meet your qualifications, what's the problem. A person on salary can vary if they have a family member die and run out of PTO & bereavement. My experience with servers is they pay their rent cause they have money in the bank to do so.

Is source of income as long it can be verified in bank statement deposit

3-6 months of cash deposits totaling more than income requirement, absolutely! You are verifying they HAVE adequate income, NOT how they got it