24 C.F.R. § 574.320
§ 574.320 Additional standards for rental assistance. (24 CFR Part 574)
Operative Text
(a) If grant funds are used to provide rental assistance, the following additional standards apply: (1) Maximum subsidy. The amount of grant funds used to pay monthly assistance for an eligible person may not exceed the difference between: (i) The lower of the rent standard or reasonable rent for the unit; and (ii) The resident's rent payment calculated under § 574.310(d). (2) Rent standard. The rent standard shall be established by the grantee and shall be no more than the published section 8 fair market rent (FMR) or the HUD-approved community-wide exception rent for the unit size. However, on a unit by unit basis, the grantee may increase that amount by up to 10 percent for up to 20 percent of the units assisted. (3) Rent reasonableness. The rent charged for a unit must be reasonable in relation to rents currently being charged for comparable units in the private unassisted market and must not be in excess of rents currently being charged by the owner for comparable unassisted units. (b) With respect to shared housing arrangements, the rent charged for an assisted family or individual shall be in relation to the size of the private space for that assisted family or individual in comparison to other private space in the shared unit, excluding common space. An assisted family or individual may be assigned a pro rata portion based on the ratio derived by dividing the number of bedrooms in their private space by the number of bedrooms in the unit. Participation in shared housing arrangements shall be voluntary.
Under 24 CFR Part 574 § 574.320, when HOPWA grant funds are used for rental assistance, the subsidy amount is capped so that it covers only the gap between what a resident is expected to contribute toward rent and either the applicable rent standard or the unit's reasonable rent—whichever is lower. Grantees must set a rent standard at or below the Section 8 Fair Market Rent or an HUD-approved exception rent, though limited flexibility exists to exceed that ceiling for a small share of assisted units. Rents must also be reasonable compared to similar unassisted units in the local market, and any shared housing arrangements must be entered into voluntarily, with costs allocated based on the proportion of private space used.
Plain English — not legal advice.
Property owners participating in HOPWA rental assistance programs under 24 CFR Part 574 § 574.320 generally ensure that the rent charged for assisted units does not exceed what is considered reasonable relative to comparable unassisted units in the local market—and does not surpass what they charge their own unassisted tenants for similar units. Compliant operators are aware that the subsidy paid on a resident's behalf is limited to the gap between the resident's required contribution and the lower of the grantee's established rent standard or the unit's reasonable rent. For shared housing units, operators typically calculate each assisted resident's rent share based on the proportion of private bedroom space that resident occupies, excluding common areas.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 574 § 574.320, individuals receiving HOPWA rental assistance have a right to have their subsidy calculated based on a capped, standardized rent—meaning the assistance is designed to bridge the gap between their required contribution and a rent that has been vetted for reasonableness against the local market. Tenants in shared housing arrangements are protected by the requirement that participation be entirely voluntary and that their rent share reflect only the private space they occupy. Those who believe their assistance amount has been calculated incorrectly or that their rent exceeds the reasonableness standard may consider raising the issue with the grantee administering the program or reaching out to a local tenant-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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