HUD HCV Guidebook § 2.6
Tax Credit and HOME Units (HUD HCV Guidebook)
Operative Text
The procedure for determining rent reasonableness has been streamlined for units receiving assistance through low-income housing tax credits (LIHTC) or the HOME program. The PHA is not required13 to compare rents for these units with unassisted local rents, if the rent to owner does not exceed the rent charged for families who are not participants in the voucher program. The reasonable rent is the lower of the rent charged to such unassisted families or the applicable payment standard. Under LIHTC, if the rent requested by the owner exceeds the rent charged in other LIHTC units for families who 12 Notice PIH 2020-19: Rent Reasonableness – Defining Assisted Units for the Housing Choice Voucher and Project- Based Voucher Programs 13 The Housing and Economic Recovery Act of 2008 Applicability to HUD Public Housing, Section 8 Tenant-Based Voucher and Section 8 Project-Based Voucher Programs; Notice,” 73 Federal Register 227 Rent Reasonableness 5 are not participants in the voucher program, PHA must14 perform a rent comparability study to determine if the requested rent is reasonable. In these cases, the rent must be the lower of the reasonable rent (as determined by the rent comparability study) or the payment standard established by the PHA for the unit size involved.15
HUD Housing Choice Voucher Guidebook § 2.6 establishes a simplified rent reasonableness process for housing units that receive Low-Income Housing Tax Credit (LIHTC) or HOME program assistance. For these units, a public housing authority (PHA) generally does not need to compare rents against unassisted market units, as long as the rent charged to voucher participants does not exceed what unassisted families pay in the same property. However, if a LIHTC owner requests a rent that is higher than what other non-voucher LIHTC tenants pay, the PHA must conduct a full rent comparability study, and the allowable rent is capped at whichever is lower — the result of that study or the PHA's applicable payment standard.
Plain English — not legal advice.
Under HUD Housing Choice Voucher Guidebook § 2.6, operators of LIHTC or HOME-assisted properties benefit from a streamlined rent review process when the rent charged to voucher holders does not exceed what non-voucher tenants pay in the same property. Compliant operators generally maintain consistent rent schedules across assisted and unassisted tenants and keep documentation showing that voucher-program rents do not exceed those charged to comparable unassisted families. When a requested rent surpasses what other non-voucher LIHTC tenants are charged, operators should expect the PHA to initiate a rent comparability study before approving the rent.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Housing Choice Voucher Guidebook § 2.6 provides that tenants using Housing Choice Vouchers in LIHTC or HOME-assisted units have a right to rent determinations that are capped at the lower of the applicable payment standard or the rent charged to non-voucher tenants in the same property. If a PHA triggers a rent comparability study because the owner's requested rent exceeds what unassisted LIHTC tenants pay, the resulting approved rent must still fall within those same limits. Tenants who believe their rent determination was handled incorrectly may raise the issue with their local PHA, consult a tenant-rights organization, or file a complaint with the U.S. Department of Housing and Urban Development.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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