HUD HCV Guidebook § 4.5

Rent Reasonableness (HUD HCV Guidebook)

HUD guidance — not codified law
In Force
Verified 9/25/2026 · Next check 10/2/2026
effective 9/25/2026FederalSection 8 HCV

Operative Text

HUD HCV Guidebook § 4.5
The rents paid by participating families residing in group homes are generally subject to applicable standards
for determining rent reasonableness. The rent to the owner for an assisted family must35not exceed the pro-
rata portion of the reasonable rent for the group home. In determining reasonable rent, the PHA must36
consider whether sanitary facilities and facilities for food preparation and service are common facilities or
private facilities. When these facilities are private versus common, the PHA’s rent reasonableness
determination may provide additional consideration when determining the reasonable rent.

       Example 7: Determining Rent Reasonableness for a Group Home Unit
         Household includes a person with               Family unit size is 2
         disabilities plus a live-in aide

         Total persons in group home (assisted and      8
         unassisted)
         Group home size                                8 bedrooms
         Comparable 8 bedroom unit rent                 $1525
         8-bedroom payment standard                     $1500
         Pro-rata share                                 2 persons in assisted
                                                        household/8 persons
                                                        in group home =
                                                        .25
         Pro-rata share of payment standard for         $1500 x .25 = $375
         group home
         Pro-rata share gross rent                      $375
         Pro-rata share of reasonable rent              $381
         Rent is reasonable                             $375
Source: Legislative text reproduced verbatim

Effective Timeline

Current
Sep 25, 2026
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Related Rules

§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 5.512
§ 5.512 Verification of eligible immigration status.

Source Information

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