HUD HCV Guidebook § 4

Prior to the effective date of any new FMRs, the PHA must review its payment standard schedule and amend it
as needed to ensure that the payment standards remain within the basic range (90 percent to 110 percent of

the new FMR).69 If the applicable FMR increases, the PHA is required to ensure that the payment standards
for each unit size are at least 90 percent of the new FMR. Similarly, if the FMR decreases, the PHA is required
to be sure that the payment standards are not more than 110 percent of the new FMR.
PHAs have up to three months from the date when the new FMRs are published by HUD and go into effect to
update its payment standards if a change is necessary to fall within the basic range of the new FMRs.70 For
example, if the new FMR went into effect on October 1, 2024, the PHA would need to update its payment
standards if necessary to fall within the basic range of the new FMRs no later than January 1, 2025.
For reexaminations of income with an effective date prior to the effective date of the new payment standard
schedule, the old payment standard schedule will be used.
For reexaminations of income that are effective on or after the effective date of the new payment standard
schedule, the new payment standard will be used if there’s an increase in payment standard. Decreases in
payment standard will be applied in accordance with the PHA’s policy on decreases in the payment standard
amount during the HAP contract term. See Section 5 of this chapter for more information on applying
payment standard increases and decreases.
The payment standard used for a newly issued voucher will depend on the effective date of the HAP contract.
If the effective date of the HAP contract is before the effective date of the new payment standard schedule,
then the old payment standard schedule is used. If the effective date of the HAP contract is on or after the
effective date of the new payment standard schedule, then the new payment standard schedule is used.
To ensure that families are informed about the effect of payment standard changes, HUD recommends that
PHAs provide both the old and the new payment standard schedules to families who have been issued a
voucher and whose search term will extend beyond the effective date of the new payment standard schedule.
PHAs are strongly encouraged to post its payment standard schedule on its website for transparency to
applicants, participants, landlords and the public.