HUD HCV Guidebook § 3.1.4
Utility Rate Schedules (HUD HCV Guidebook)
Operative Text
The cost of gas and electricity varies according to the amounts consumed, as shown on the utility suppliers’ rate schedules. For this reason, it may not be possible to accurately calculate the cost for a utility in any one- service category until the usage of that utility for all service categories is known. For example, a unit with electric heating may qualify for a lower “All-Electric” rate if electricity is also used for cooking, lighting, refrigeration, and domestic hot water. Rates for gas usage may decline with the volume of gas used, resulting in a lower cost for gas used for heating, cooking, and domestic hot water than for each use considered separately. For convenience in calculating the utility allowances for any combination of utilities, it is recommended that the PHA use the higher rates. Allowances for electric cooking, water heating, and space heating should be calculated using the lower rates at the middle or bottom of the company’s rate schedule.
HUD Housing Choice Voucher Guidebook § 3.1.4 addresses how utility rate schedules affect the calculation of utility allowances under the Housing Choice Voucher program. Because gas and electricity costs can shift depending on total consumption across all uses in a unit, the actual rate applied to any single use may not be determinable until all uses are known. The provision notes that combined usage can sometimes qualify a unit for lower tiered rates, and it recommends a specific approach for handling this complexity when setting allowances.
Plain English — not legal advice.
Under HUD Housing Choice Voucher Guidebook § 3.1.4, Public Housing Authorities (PHAs) are guided to use higher utility rates as a default when calculating allowances for most utility combinations, while using lower mid- or bottom-tier rates specifically for electric cooking, water heating, and space heating. Operators working with PHAs on utility allowance determinations generally ensure that all service categories in a unit are identified together, since the combination of uses can affect which rate tier applies. Staying familiar with the local utility supplier's rate schedule helps support accurate allowance calculations during inspections or rent determinations.
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 § 3.1.4 establishes that the utility allowance a PHA sets for your unit should reflect the actual rate structure of your local utility supplier, including any lower rates that may apply when multiple utilities are provided by the same source. If you believe your utility allowance does not accurately reflect the applicable rate tier—for example, if your unit qualifies for an all-electric rate—you may raise this concern with your local PHA directly. Tenant-rights organizations familiar with the Housing Choice Voucher program can help you understand how allowances are calculated and what options exist for requesting a review.
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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