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Payment Standard

"Payment Standard" is a term used in the Housing Choice Tenant-Based Voucher program. There is no comparable term in other Section 8 programs. The Payment Standard is used in calculating the Housing Assistance Payment (HAP) amount and the Family Rent to Owner.

Payment Standard is defined in 24CFR982.4 as, "The maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)." Your PHA maintains a schedule of Payment Standards based on the location and number of bedrooms of a rental unit.

NOTE: The Code of Federal Regulations (CFR) is available at: http://www.gpoaccess.gov/cfr/.

Fair Market Rent

The Payment Standard schedule is based on the Fair Market Rent, which is defined as: "The rent, including the cost of utilities (except telephone), as established by HUD for units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable amenities."

Your PHA can set the different Payment Standards for different areas within its jurisdiction. Payment Standards can be set between 90% and 110% of the Fair Market Rent, or higher in exceptional circumstances or as an accommodation for disability accessibility. (See 24CFR 982.503(c) for details.)

NOTE: The Code of Federal Regulations (CFR) is available at: http://www.gpoaccess.gov/cfr/.

Payment Standard for the Family

If your rental unit has the number of bedrooms that HUD says is appropriate for your family size, then the Payment Standard for your family size is the same as the Payment Standard for the unit, and it is used in the rent calculations. If the unit has more bedrooms than is appropriate for your family size, then the Payment Standard for a unit that would be the appropriate size is used. This means that you pay a higher rent. See Family Rent to Owner for details of the rent calculations.

See Also:

Family Size & Number of Bedrooms

Tenant-Based & Project-Based Voucher & Certificate Overview

Source:

Code of Federal Regulations (CFR): 24CFR982.503-505

Back to:

Section 8 Housing Overview

Federal Rent Assistance


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