HUD HCV Guidebook § 9

The following terms are used in this Chapter:
Applicable FMR for tenant-based HCVs means the HUD-published SAFMR for PHAs in mandatory SAFMR areas
or for those PHAs that have opted-in to using the SAFMR, and the HUD-published metropolitan FMR for any
other metropolitan area or the HUD-published FMR for any other non-metropolitan county. Applicable FMR for
the PBV program means the HUD-published metropolitan FMR for any metropolitan area or the HUD-published
non-metropolitan county FMR for any non-metropolitan county unless the PBV project is located in a
mandatory SAFMR area or a ZIP code where the PHA has opted in to the SAFMR, and the PHA has also
adopted a policy applying SAFMRs to its PBV program and met all other requirements in accordance with 24
CFR 888.113(h).
Basic Range means payment standards between 90 percent and 110 percent of the 40th percentile FMR.
Exception Area means a designated part of an FMR area.
Exception Payment Standard means payment standard below 90 percent or above 110 percent of the 40th
percentile FMR, with HUD’s approval if necessary.
Fair Market Rent (FMR) is the rent, including the cost of utilities (except telephone), as established by HUD for
units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately
owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable
amenities.
Family Share is the portion of rent and utilities paid by the family.
Family Unit Size means the appropriate number of bedrooms for a family, as determined by the PHA under the
PHA subsidy standards.
Gross Rent is the entire housing cost and is calculated by adding the rent to the owner and the utility
allowance for the unit. Note: If all the utilities are included in the rent, the rent to the owner and the gross rent
will be the same.
Housing Assistance Payment is the monthly assistance payment by a PHA, which includes: (1) a payment to
the owner for rent to the owner under the family's lease; and (2) an additional payment to the family if the
total assistance payment exceeds the rent to owner.
Maximum Family Share means, at initial occupancy (when the family initially moves into the unit or signs the
first assisted lease for a unit), 40 percent of the family’s adjusted monthly income (in cases when the gross
rent of the unit exceeds the applicable payment standard for the family).
Payment Standard is the maximum monthly assistance payment for a family assisted in the voucher program
(before deducting the total tenant payment by the family).
Payment standard schedule is a schedule that establishes payment standard amounts by unit size (number of
bedrooms) for each FMR area in the PHA jurisdiction.
Rent to Owner is the total monthly rent payable to the owner under the lease for the unit. Rent to owner
covers payment for any housing services, maintenance and utilities that the owner is required to provide and
pay for.
Success Rate refers to the percent of applicants with issued vouchers who successfully find and lease a unit
that meets HCV program requirements before the voucher expires.

Total Tenant Payment (TTP) is the minimum family contribution to the gross rent and is calculated as the
greater of 1) 30 percent of monthly adjusted income; 2) 10 percent of monthly income; 3) the welfare rent (in
as-paid states only); or 4) the PHA minimum rent.
Utility Allowance means, if the cost of utilities (except telephone) and other housing services for an assisted
unit is not included in the rent to owner but is the responsibility of the family occupying the unit, an amount
equal to the estimate made or approved by a PHA or HUD of the monthly cost of a reasonable consumption of
such utilities and other services for the unit by an energy-conservative household of modest circumstances
consistent with the requirements of a safe, sanitary, and healthful living environment.