The U.S. Department of Housing and Urban Development (HUD) sets payment standards that cap the subsidy Public Housing Agencies can provide to families in the Housing Choice Voucher (HCV) program. These standards are based on Fair Market Rents (FMRs), which HUD estimates annually for each metropolitan area, and are used to calculate the Housing Assistance Payment (HAP) made to landlords on behalf of participating families.
HUD also sets a rent reasonableness standard designed to ensure that rents being paid are reasonable in relation to rents being charged for comparable unassisted units in the same market. HPC will determine whether the contract rent you are requesting is reasonable using a comparison of rents, location, size, amenities, quality, etc.
Utility Allowance
Voucher payment standards include an amount for utilities that impact how much the rent can be. Each year the allowance for tenant-paid utilities is reviewed and adjusted for changes in utility rates. Estimates are not based on a households’ actual energy consumption and do not include non-essential utility costs, such as telephone or cable.