How the payment standard works

The 90–110% rule

HUD's basic payment-standard range is 90–110% of the applicable FMR or Small Area FMR. Exceptions may permit higher or lower amounts. Check your PHA's current published schedule — the 90% and 110% figures on this site are illustrative, not your PHA's adopted standard.

What the tenant pays

Housing assistance payment = the lower of the payment standard or the unit's gross rent (rent plus the PHA's utility allowance) − total tenant payment. The total tenant payment is the highest of 30% of adjusted monthly income, 10% of gross monthly income, or the authority's minimum rent. If gross rent is above the payment standard, the tenant also pays the difference. At initial occupancy, if gross rent exceeds the applicable payment standard, the family's share cannot exceed 40% of adjusted monthly income; the PHA must also approve the unit and find the rent reasonable.

Rent reasonableness

Independently of the standard, the authority must find the asking rent "reasonable" compared with similar unassisted units nearby. A landlord cannot charge a voucher tenant more than comparable market rent even if the payment standard would cover it.

For landlords

Keeping gross rent (rent plus the utility allowance) at or below the applicable payment standard avoids an additional gap caused by exceeding that standard; the household still pays its housing-authority-determined share. Utilities matter: if the tenant pays them, the allowance counts against the standard, so a unit with heat included can list higher than one without.

When standards change

New FMRs take effect October 1. PHAs must follow federal rules for updating payment standards and for applying changes to existing households (generally at a regular reexamination). HUD's FMR effective date is not, by itself, the date your household's assistance changes — ask your PHA which schedule and effective date apply to your case.