HUD HCV Guidebook § 3.1
Establishing a Utility Allowance Schedule (HUD HCV Guidebook)
Operative Text
In developing the schedule, the PHA must18 use normal patterns of consumption for the community as a
whole and current utility rates. The objective is to establish allowances based on actual rates and average
consumption estimates, which allows most participating families an allowance that is adequate to cover
expected average utility costs over a twelve-month period. Similar to the “budget plans” available through
many local utility companies, the allowances are based on an estimated full year of usage divided equally over
12 months, although the family’s actual usage may fluctuate from month to month. Information regarding
typical utility usage and the cost of utilities and services is generally available through the following local
sources:
Electric utility suppliers;
Natural gas utility suppliers;
Water and sewer suppliers;
Fuel oil and bottled gas suppliers;
Public utility commissions;
Real estate and property management firms;
State and local agencies;
Appliance sales and leasing firms; and
Neighboring PHAs.Under HUD Housing Choice Voucher Guidebook § 3.1, Public Housing Authorities (PHAs) are required to build utility allowance schedules using real-world consumption patterns for the broader community and current utility rates. The goal is to produce allowances that reflect average expected costs across a full twelve-month period, spread evenly month to month, even though any individual household's actual usage may vary. PHAs are expected to gather supporting data from a range of local sources, including utility suppliers, public utility commissions, real estate firms, state and local agencies, and neighboring PHAs.
Plain English — not legal advice.
Property owners and managers participating in the Housing Choice Voucher program should be aware that under HUD Housing Choice Voucher Guidebook § 3.1, the utility allowance a tenant receives is set by the PHA based on community-wide consumption norms and current rates — not on the specific unit's actual usage. Compliant operators generally familiarize themselves with how the local PHA constructs its utility allowance schedule, since that figure directly affects the effective rent calculation. Keeping records of utility infrastructure and appliance types in a unit can be useful when a PHA is gathering data from property management firms as part of its schedule development process.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Housing Choice Voucher Guidebook § 3.1, tenants participating in the Housing Choice Voucher program are entitled to a utility allowance calculated to cover average expected utility costs over a twelve-month period, based on community-wide consumption patterns and current rates. Because the allowance is an average estimate, a household's actual monthly costs may be higher or lower than the allowance in any given month. Tenants who believe their PHA's utility allowance schedule does not reflect current rates or typical consumption patterns may raise the issue with their local PHA, contact a tenant-rights organization for general guidance, 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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