HUD HCV Guidebook § 1

The determination of the family’s share of total housing costs and the PHA’s housing assistance
payment (HAP) is a two-step process. When the PHA issues a housing choice voucher, it is important
for the PHA to give the applicant or participant information on the maximum amount the family is
expected to contribute toward housing costs and the maximum subsidy that the PHA may pay. This
information is essential for a family to search and select an appropriately priced home within the
voucher term.

The PHA establishes payment standards by bedroom size. Payment standards are the maximum
monthly assistance payment for a family assisted in the voucher program before deducting the total
tenant payment by the family (for more information, see the Payment Standards chapter). The final
calculation of the family’s share of the housing costs and the HAP amount cannot be completed until
the family has selected a unit, because the family has the option of selecting a unit with a rent that is
more or less than the PHA payment standard.