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Payment Standard for Each Area This payment standard will be between 90 and 110 percent of the Fair Market Rent. Therefore, the three factors that determine how much Section 8 pays landlords are: The Fair Market Rent that has been set for the metropolitan area where your property is located.
The payment standard is the maximum subsidy a PHA can pay on behalf of a family, and a PHA establishes payment standards based on the HUD-established Fair Market Rents (FOR) for the area. More details on exception payment standards are below.
Within the basic range, the payment standard is set between 90 percent and 110 percent of the 40th percentile published FOR. Whenever the FOR increases or decreases, the PHA must ensure that its payment standards remain within the basic range.
Under the Section 8 Housing Choice Voucher program, most tenants will pay 30% of their monthly income. The Public Housing Authority that issued and approved the voucher will pay the landlord the remainder of the rent and utility costs.
Under the Section 8 Housing Choice Voucher program, most tenants will pay 30% of their monthly income. The Public Housing Authority that issued and approved the voucher will pay the landlord the remainder of the rent and utility costs.
Your PHA will calculate the maximum voucher amount. The maximum amount is usually the 30% of a family's monthly adjusted income minus the payment standard OR 30% of monthly adjusted income minus the rent payment, whichever is less.
While federal law prohibits you from charging more rent to Section 8 tenants than you would unsubsidized renters, you can charge more than HUD's fair market statistics. Bear in mind, however, that HUD does not allow Section 8 families to spend more than 40 percent of their household incomes on rent and utilities.
Fair market rent is a gross rent estimate that includes the base rent, as well as any essential utilities that the tenant would be responsible for paying, such as gas or electric. HUD arrives at the numbers for each area with the help of census data and through renter surveys.
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