HUD Handbook 4350.3 § 5-27

A.       The amount of the monthly assistance payment to the owner is equal to the
                 contract rent minus the monthly amount paid by the police officer or security
                 personnel. HUD will not increase the assistance payment due to nonpayment of
                 rent by the police officer or security personnel.

                NOTE: The owner is not entitled to vacancy payments for the period following
                occupancy by a police officer or security personnel.

        B.       For police/security personnel whose income exceeds the income limit for the
                 property, the rent is set by the owner.

                 1.       The determination of the rent amount in such circumstances should take
                          into consideration the income of the officer, the location of the property,
                          and rents for comparable unassisted units in the area.

                 2.       Owners should establish a rent that is attractive to the officer, but not less
                          than what the officer would pay as an eligible Section 8 tenant.

                 3.       Owners are expected to use a consistent methodology for each property
                          when establishing the rents for officers in these circumstances.