24 C.F.R. § 983.305
§ 983.305 Rent to owner: effect of rent control and other rent limits. (24 CFR Part 983)
Operative Text
In addition to the limitation to 110 percent of the FMR in § 983.301(b)(1), the rent reasonableness limit under §§ 983.301(b)(2) and 983.303, the rental determination provisions of § 983.301(f), the special limitations for tax credit units under § 983.301(c), and other rent limits under this part, the amount of rent to owner also may be subject to rent control or other limits under local, state, or federal law.
Under 24 CFR Part 983 § 983.305, the rent a property owner receives through a Project-Based Voucher (PBV) contract is not governed solely by HUD's own caps—such as the 110 percent FMR ceiling or rent reasonableness standards. Any applicable local, state, or federal rent control law or other external rent limit can independently constrain what the owner may charge. In other words, HUD's rules and outside rent regulations operate simultaneously, and whichever imposes the lower ceiling on rent effectively controls.
Plain English — not legal advice.
Operators participating in the PBV program under 24 CFR Part 983 § 983.305 generally ensure that the contract rent they request complies not only with HUD's internal limits—such as FMR caps and rent reasonableness determinations—but also with any local or state rent stabilization ordinances or other applicable rent control laws. A compliant operator typically audits the unit's rent against all overlapping regulatory frameworks before submitting or renewing a rent proposal. Keeping records that document compliance with each applicable layer of rent regulation is a practice commonly associated with smooth contract administration.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 983 § 983.305, tenants living in PBV-assisted units have an interest in knowing that their unit's rent is subject to multiple layers of protection—HUD's own program limits and any local, state, or federal rent control laws that apply to the property. If a tenant believes the rent charged or proposed exceeds what is permitted under any of these overlapping frameworks, they may raise that concern with the local Public Housing Authority administering the PBV contract, file a complaint with the relevant local rent board if one exists, or reach out to a tenant-rights organization for general information about applicable protections.
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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