24 C.F.R. § 982.521
§ 982.521 Rent to owner in subsidized project. (24 CFR Part 982)
Operative Text
(a) Applicability to subsidized project. This section applies to a program tenancy in any of the following types of federally subsidized project: (1) An insured or non-insured Section 236 project; (2) A Section 202 project; (3) A Section 221(d)(3) below market interest rate (BMIR) project; or (4) A Section 515 project of the Rural Development Administration. (b) How rent to owner is determined. The rent to owner is the subsidized rent as determined in accordance with requirements for the applicable federal program listed in paragraph (a) of this section. This determination is not subject to the prohibition against increasing the rent to owner during the initial lease term (see § 982.309).
Section 982.521 establishes a special rule for how rent is calculated when a Housing Choice Voucher (Section 8) tenant lives in certain types of federally subsidized housing projects, including Section 236, Section 202, Section 221(d)(3) BMIR, and Section 515 Rural Development properties. In these situations, the rent paid to the property owner is set according to the rules of whichever federal subsidy program governs that project, rather than through the standard HCV rent-reasonableness process. Notably, this subsidized rent determination is exempt from the general rule under § 982.309 that prohibits rent increases during an initial lease term.
Plain English — not legal advice.
Owners and managers of federally subsidized projects covered by § 982.521 — including Section 236, Section 202, Section 221(d)(3) BMIR, and Section 515 properties — generally look to the rent-setting requirements of the applicable federal program to determine what rent they may collect from a voucher-assisted tenant. Because § 982.521 carves out an exception to the initial-lease-term rent-increase prohibition found at § 982.309, compliant operators in these project types follow the subsidy program's own procedures when any rent adjustment occurs, rather than waiting for the initial lease term to expire. Keeping documentation of how the subsidized rent was calculated under the governing program is a standard practice for demonstrating compliance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
If you hold a Housing Choice Voucher and live in a Section 236, Section 202, Section 221(d)(3) BMIR, or Section 515 Rural Development property, § 982.521 means your rent-to-owner is governed by that project's federal program rules rather than the typical voucher rent process. This also means the usual protection against mid-lease rent increases under § 982.309 does not apply in the same way in these settings, so understanding which program covers your building can be important context. Tenants who have questions about how their rent was calculated or whether the correct program rules were followed may find it helpful to contact their local Public Housing Authority, a HUD-approved housing counseling agency, or a tenant-rights organization for general information.
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 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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