HUD HCV Guidebook § 1

In the Housing Choice Voucher (HCV) program, payment standards are used in the calculation of the housing
assistance payment (HAP) that the Public Housing Agency (PHA) pays to the owner on behalf of the family
leasing the unit.1 24 CFR 982.4 defines payment standard as the maximum monthly assistance payment for
a family assisted in the voucher program (before deducting the total tenant payment by the family).
The payment standard for a family is the lower of:2
         •   Payment standard for the family unit size indicated on the voucher; or
         •   Payment standard for the size of the unit leased by the family.
If the unit is located in an exception area, the PHA must use the appropriate payment standard for that
exception area.3
The level at which the payment standard is set directly affects the amount of subsidy a family will receive, and,
therefore, the amount of rent paid by program participants. If the family leases a unit with a gross rent at or
below the payment standard for the family, the family’s share of the rent plus an allowance for utilities will be
equal to the family’s total tenant payment (TTP) (see Income Determination chapter). If the gross rent for the
unit is higher than the payment standard, the family is responsible for the difference. In this case, the total
family share will be higher than the family’s TTP.
Payment standards should be a balance between efficient use of HAP dollars and allowing subsidized families
to be competitive in the open rental market. If the PHA’s payment standards are too low:
         •   Families may pay more in rent.
         •   Families may have a hard time finding acceptable units, or units in more desirable areas and
             housing choice will be narrowed.

1
  This chapter is inapplicable to the Project Based Voucher (PBV) program except in sections specific to the PBV
program.
2
  24 CFR 982.505(c)(1)
3
  24 CFR 982.505(c)(2)

If the payment standard is too high, the PHA may not be housing as many families as it could with its current
HAP budget.
Payment standards should be high enough to allow families a reasonable selection of decent, safe, and
sanitary housing in a range of neighborhoods in the PHA’s jurisdiction. To meet that objective and to support
families wishing to move to areas with lower concentrations of low-income and minority households, a PHA
may establish higher payment standard schedules for certain areas within its jurisdiction so that HCV families
can rent units in more opportunity areas.
The PHA’s procedures for establishing and revising its payment standard schedule must be set in its
administrative plan.4