HUD PIH Notice § 2017-23
Updates to Flat Rent Requirements (HUD PIH Notices)
HUD guidance — not codified law
In Force
Verified 10/14/2026 · Next check 10/21/2026
effective 10/6/2026FederalAffordable Housing ProgramsOperative Text
HUD PIH Notice § 2017-23
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
Special Attention: NOTICE PIH-2017-23 (HA)
Public Housing Agencies (PHAs)
Public Housing Hub Office Directors Issued: November 30, 2017
Public Housing Program Center Directors
Regional Directors
Field Office Directors
Resident Management Corporations Expires: Effective until
amended, superseded, or
rescinded
Cross References: 24 CFR
Part 960, 24 CFR Part 903,
Notice PIH 2014-12, Notices
PIH 2015-13
Subject: Updates to Flat Rent Requirements
1. PURPOSE
This Notice supersedes and replaces the guidance provided in Notice PIH 2015-13 and
clarifies HUD’s interpretation of the statutory amendment related to flat rents. This
Notice also serves as supplemental guidance to the final rule on Streamlining
Administrative Regulations for Public Housing, Housing Choice Voucher, Multifamily
Housing, and Community Planning and Development Programs (81 FR 12354,
published on March 8, 2016), codified at 24 CFR 960.253.
2. APPLICABILITY
This Notice applies to PHAs that operate a Public Housing program. It also applies to
families residing in, or applying to, the Public Housing program.
Moving to Work (MTW) PHAs operating a Public Housing program can exercise
flexibility and establish alternative requirements, in accordance with the terms of their
respective MTW Agreement and approved Annual MTW Plan. If an MTW PHA’s
Annual MTW Plan does not include alternative policies regarding flat rent requirements,
then the policies set forth in this Notice will apply to the MTW PHA.
3. BACKGROUND
The FY 2014 Appropriations Act required PHAs to establish flat rents at no less than 80
percent of the applicable Fair Market Rent (FMR), and established rent increase phase-in
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requirements to prevent family rental payments from increasing by more than 35 percent.
HUD implemented these requirements through Notice PIH 2014-12. Through FAQs
accompanying Notice PIH 2014-12, HUD provided flexibility to PHAs to phase-in all
flat rent increases over a 3-year period, including those increases that were 35 percent or
less.
The FY 2015 Appropriations Act maintained the FY 2014 rent increase phase-in
requirements and amended the 2014 Act to require that flat rents be set at no less than the
lower of:
1. 80 percent of the applicable FMR established under Section 8(c) of this Act; or
2. At the discretion of the Secretary, 80 percent of such other applicable FMR
established by the Secretary that the Secretary determines more accurately reflects
local market conditions and is based on an applicable market area that is
geographically smaller than the applicable market area used for purposes of the
applicable FMR under Section 8(c) of this Act (such as the applicable Small Area
Fair Market Rent (SAFMR) or unadjusted rent).
A PHA may apply for a flat rent amount that is lower than the two options outlined above
if:
• The PHA demonstrates, through the submission of a market analysis, that those
rent options are not reflective of the unit’s market value; and
• HUD agrees with the PHA’s market analysis determination (see Section 5 of this
Notice).
In accordance with 42 U.S.C. 1437a(a)(2)(A)(ii), PHAs that established and were
administering ceiling rents prior to October 1, 1999 are authorized to continue to
administer ceiling rents in lieu of flat rents, provided such ceiling rents are set at the level
required for flat rents as required by 24 CFR 960.253(d). Further, such PHAs must
follow the requirements for calculating, adjusting, and reporting flat rents when
calculating and adjusting ceiling rents. To improve transparency and accuracy of
reporting, PHAs administering ceiling rents may no longer use line 10c (income-based
ceiling rent) on the HUD Form-50058 to report ceiling rents for any household. Instead,
PHAs must use line 10b (flat rent) to report the applicable maximum rental amount.
4. SMALLER GEOGRAPHICAL AREA FMRs
If a PHA does not believe the 80 percent FMR is reflective of its local market conditions
(flat rent setting option #1), it may use a HUD-established FMR that is based on an area
geographically smaller than the effective FMR published in the Federal Register to
determine the minimum flat rent amount (flat rent setting option #2).
To satisfy option #2, PHAs may use the applicable SAFMR, which HUD will publish
annually on its website, available at:
http://www.huduser.org/portal/datasets/fmr/smallarea/index.html
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For some areas for which HUD does not publish a SAFMR, HUD will permit PHAs to
use 80 percent of the unadjusted rent to satisfy option #2, which HUD will publish
annually on its website.1 While 80 percent of the unadjusted rent will always be lower
than 100 percent of the FMR, it may or may not be lower than 80 percent of the FMR.
Therefore, PHAs should assess all available options when setting its flat rent rates:
1. 80 percent of the FMR; or
2. 80 percent of the SAFMR (or if a SAFMR is not available, 80 percent of the
unadjusted rent).
PHAs are not permitted to establish any other smaller geographical FMRs, different from
these two options. For areas where HUD has not determined a SAFMR or an unadjusted
rent, PHAs must set rents at no less than 80 percent of the FMR, or apply for an
exception flat rent pursuant to the requirements of Section 5 of this Notice.
5. EXCEPTION FLAT RENTS
5a. When a Flat Rent Exception is Required.
HUD only requires flat rent exception requests when PHAs are setting flat rents at an
amount that is lower than the lesser of the following (less utility allowances, if
applicable):
1. 80 percent of the FMR, or
2. 80 percent of the SAFMR (or if a SAFMR is not available, 80 percent of the
unadjusted rent).
PHAs do not need to submit exception requests to set flat rents at or above 80 percent of
the FMR or SAFMR, or if the SAFMR is not available, 80 percent of the unadjusted rent.
The flat rent exception request process is for a PHA that wishes to base its flat rents on
specific market conditions supported by a market analysis. PHAs do not need to submit a
request to HUD in order to use the FMR, SAFMR, or unadjusted rent to set flat rents in
accordance with Sections 3 and 4 of this Notice.
1
The unadjusted rent is the FMR estimated directly from the American Community Survey (ACS) source data that
HUD uses to calculate FMRs before HUD applies its state non-metropolitan minimum rent policy. HUD maintains
a minimum FMR policy within the Housing Choice Voucher (HCV) program in response to numerous public
concerns that FMRs in rural areas were too low to operate the HCV program successfully. The policy establishes
the FMRs at the higher of the local FMR or the State-wide average FMR of non-metropolitan counties, subject to a
ceiling rent cap. The rationale for having a state minimum FMR is that some low-income, low-rent non-
metropolitan counties have ACS-based FMR estimates that appear to be below long-term operating costs for
standard quality rental units and raise concerns about housing quality. State minimum FMRs have been set at the
respective state-wide population weighted median non-metropolitan rent level, but are not allowed to exceed the
U.S. median non-metropolitan rent level.
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PHAs with previously approved flat rent exception requests may submit a written request
to extend their approved flat rent rates for up to 2 additional years, provided local market
conditions remain unchanged (see Section 5d of this Notice).
5b. Flat Rent Exception Request Timeframes and Key Dates.
HUD updates and posts new FMRs annually. Typically, the final FMR rates for the
current fiscal year are effective on or around October 1. PHAs may access FMR rates
here: https://www.huduser.gov/portal/datasets/fmr.html
From the effective date of the current fiscal year’s FMRs, PHAs have 90 days to either
implement new FMR-based flat rents or submit an exception request. In a typical year,
this would mean that a PHA will have until December 31 to either update its flat rents
based on the new FMRs, or submit an exception request.2
In the event that a PHA submits an incomplete flat rent exception request and/or
incomplete supporting market analysis, HUD will provide that PHA with two
opportunities to cure deficiencies before disapproving the request.
While HUD is reviewing a PHA’s flat rent exception request or any supplemental
information, the PHA may continue to utilize its current flat rent schedule. PHAs must
receive written HUD approval to utilize an exception flat rent prior to implementing the
new exception flat rent rates.
An approved exception request will remain in effect until the end of the 90-day period
commencing upon the effective date of HUD’s Final Fiscal Year FMRs or the date on
which a PHA updates and makes effective its flat rent schedule based on that fiscal year’s
FMRs, whichever comes first.
The PHA must update its flat rents to the approved flat rent exception amount after the
date of HUD’s approval. Thereafter, the PHA may immediately apply the exception flat
rent amount to intakes and reexaminations. However, the PHA must apply the approved
exception flat rent amount to all intakes and reexaminations that take effect 60 days or
more after HUD’s approval date.
5c. Process to Submit a New Flat Rent Exception Request.
PHAs may request an exception flat rent by sending an email to
flatrentexceptionrequests@hud.gov with the following information attached:
2
A PHA or other interested party may request a HUD reevaluation of its FMRs, as provided for under Section
8(c)(1)(B) of the U.S. Housing Act, as amended by the Housing Opportunity Through Modernization Act
(HOTMA). HUD will review FMR reevaluation requests and supporting data, and following the reevaluation, will
post revised FMRs with an accompanying Federal Register notice stating the revised FMRs are available. For areas
affected by a request for an FMR reevaluation, the 90-day flat rent implementation timeframe described in Section 7
of this Notice will commence upon the effective date of the revised FMRs.
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• The address including unit number(s) and AMP number(s) of the unit or property
for which the PHA is seeking an exception flat rent;
• A market analysis; and
• The proposed flat rent schedule.
5d. Process to Extend a Previously Approved Flat Rent Exception Request.
If HUD approved a PHA’s flat rent exception request from a previous fiscal year, the
PHA may request an extension of this approval under the following circumstances:
• The market study accompanying the previously approved request is no more than
2 years old;
• Market conditions remain unchanged; and
• The PHA submits the extension request to HUD no later than 90 days after the
effective date of the final FMRs published by HUD (typically December 31st of
that calendar year).
PHAs may request an exception flat rent extension by sending an email to
flatrentexceptionrequests@HUD.GOV with the following information attached:
• The address, including unit number(s) of the unit or property for which the PHA
is seeking an exception flat rent extension;
• The flat rent schedule to be extended; and
• The date of the previous market study.
If during the 2-year renewal period the PHA becomes aware of a change in local market
conditions that would impact the market (e.g., a major employer enters or leaves the area,
significant private sector redevelopment), the PHA must either:
1. Discontinue the use of the current flat rent exception and implement a flat rent that is
at least equal to the lower of 80 percent of the FMR or 80 percent of the SAFMR (or
if no SAFMR is available, 80 percent of the unadjusted rent), or
2. Conduct a new market analysis and submit a new flat rent exception request to HUD
for approval (if the PHA selects this option, it may continue to use the current flat
rent exception amounts until HUD issues its decision).
One resource for PHAs to make this market continuity determination is the U.S. Housing
Market Conditions Market-at-a-Glance report. The Market-at-a-Glance for the counties
and metropolitan areas are based on data from the Bureau of Labor Statistics and
American Community Survey data from the U.S. Census Bureau. Some adjustments are
made by HUD field economists based on regional information. The Market-at-a-Glance
reports can be found here: https://www.huduser.gov/portal/ushmc/mag.html
5e. Required Market Analysis Content.
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In order to demonstrate the need for an exception flat rent, PHAs are required to submit a
market analysis that demonstrates the value of the unit. The PHA may not request an
exception flat rent that is lower than the demonstrated market value of the unit.3 A
market analysis must:
1. Explain the methodology used to compare the Public Housing unit to unassisted units
in the area using the following factors:
a) Location, quality, size, unit type, age of the unit;
b) Amenities, housing services, maintenance; and
c) Utilities the PHA and/or landlord (for comparable units in the market study) will
pay under the applicable lease.
2. Provide a corresponding key explaining the calculations used for determining the
valuation of each factor.
These criteria are meant to assist PHAs in developing a common sense approach to
valuing a unit. It remains important to note that the Department places a high priority on
accurate rent determinations and requires that such determinations be performed in a
documented, reasonable, and consistent manner. To the extent possible, rent valuation
should be based on rents paid for similar units in the same general location that are
similar in terms of the overall quality of housing services provided. Any procedures or
documentation used should reflect this approach.
5f. Disapproved Flat Rent Exception Requests.
After HUD receives and reviews a flat rent exception request, HUD will respond with the
results of its review and provide PHAs two opportunities to cure deficiencies or provide
additional information. A PHA must respond in writing no later than 30 days after
receiving HUD’s notification of the insufficient submission. The response should include
any new information the PHA believes is necessary to supplement the original
submission. While awaiting the results of HUD’s review of the additional information,
the PHA may continue to utilize its current flat rent schedule.
If the PHA cannot provide sufficient information to justify the exception after two
requests for additional information, HUD will deny the flat rent exception request. If the
PHA’s exception request is denied, the PHA must immediately revise its flat rent rates
using an applicable FMR product (per Section 3 and 4 of this Notice) and the updated flat
rent rates must be applied to any intake or reexamination that takes effect 60 days after
the denial date.
6. FMRs AND UTILITY PAYMENTS
FMRs are gross rent estimates that cover the rent plus the cost of all necessary utilities
regardless of who actually pays the utilities. Although the inclusion of utilities in the
FMR is an accurate estimate of the cost of renting a unit in a particular area, their
3
For example, if the market analysis determines that the value of the PHA unit is $500, then the flat rent exception
request for that unit should be set at $500 (not 80 percent of $500).
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inclusion for purposes of setting Public Housing flat rents may lead to families paying
more in gross rent if the rent is not adjusted to reflect utility payments that are the
family’s responsibility. Specifically, families that pay a flat rent for Public Housing units
and that pay their own utilities would pay more in gross rent (i.e., rent plus utilities) than
a family in a similarly situated unit where the PHA pays the utilities.
To address this issue when establishing flat rents, PHAs must consider who is responsible
for direct utility payments to the utility company, and provide for a utility allowance as
necessary. Such utility allowances must be established consistent with the requirements
of 24 CFR 960.253(b)(4) and 24 CFR 965, Subpart E.
7. FLAT RENT POLICIES – HOW TO COMPLY ON AN ANNUAL BASIS
In order to comply with the flat rent requirements annually, no later than 90 days after the
effective date of new FMRs or SAFMRs published by HUD, the PHA must:
1. Compare the current flat rent amount to the applicable FMR and SAFMR/unadjusted
rent. If the PHA is in compliance with this the law, no further steps are necessary:
a) If the flat rent is at least equal to the lower of:
a. 80 percent of the FMR, or
b. 80 percent of the SAFMR (or if no SAFMR is available, 80 percent of
unadjusted rent).
b) If the current flat rent is less than the lower of option a or option b above, the
PHA must set flat rents at no less than 80 percent of the lower of the 80 percent
FMR or 80 percent SAFMR/80 percent unadjusted rent, subject to the utilities
adjustment in Section 6 of this Notice, or the PHA may request an exception flat
rent pursuant to the requirements of Section 5 of this Notice;
2. Update the flat rent policies in the Admissions and Continued Occupancy Policies
(ACOP) as necessary;
3. Permit the family to choose between the flat rent amount and the income-based rent
for all new admissions; and
4. Offer the updated flat rent amount at the next annual rent option for families that are
current Public Housing residents, and permit the family to choose between the flat
rent amount and the income-based rent, subject to the phase-in requirements in
Section 8 of this Notice.
For those PHAs with an approved flat rent exception request, the PHA must update its
flat rents to the approved flat rent exception amount immediately after approval for all
intake and reexamination activities. The PHA may apply the approved flat rent exception
amount immediately to intakes and reexaminations, and must apply it to any intake or
reexamination that takes effect 60 days or more after the approval date.
8. FLAT RENT INCREASE PHASE-IN REQUIREMENTS
If an existing flat rent tenant’s rental payment prior to any applicable adjustments for
utilities payments increases by more than 35 percent as a result of changes to the flat rent
8
amount, the increase must be phased-in such that a family does not experience an
increase in their rental payment of more than 35 percent.
In order to determine how to phase-in increases in rental payments, PHAs must on a case-
by-case basis, at the family’s next annual rent option, compare the updated flat rent
amount applicable to the unit to the rent that was being paid by the family immediately
prior to the annual rent option:
1. If the new flat rent amount would not increase a family’s rental payment by more
than 35 percent, the family may choose to pay either the updated flat rent amount or
the previously calculated income-based rent;
2. If the PHA determines that the updated flat rent amount would increase a household’s
rental payment by more than 35 percent, the family may choose to pay the phased-in
flat rent amount resulting from the flat rent impact analysis or the previously
calculated income-based rent.
Example 1 – Flat Rent Increase Does Not Require Phase-In
The Gordon family is currently paying the flat rent amount of $350 per month, rather
than the income-based rent of $500. When the Gordon family meets with the PHA to
discuss rent options for the upcoming year, the PHA informs the Gordon family that the
flat rent amount has increased to $450 per month. Because the increase in the flat rent
amount does not represent an increase of more than 35 percent from the Gordon’s
previous rental payment amount, they have the option to pay the new flat rent amount of
$450, or pay the income-based rent of $500. The Gordon family chooses to pay the new
flat rent amount of $450.
Initial Flat Rent: $350
New Flat Rent: $450
Family Rent Increase Impact Analysis:
Initial New Flat Impact Analysis Income- New Household
Household Rent Rental amount (HRx1.35) Based Rent Rent
$350 $450 $472.5 $500 $450
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Example 2 – Flat Rent Increase Requires Phase-In
The Jones family is currently paying the flat rent amount of $500 per month. When the
Jones family meets with the PHA to discuss rent options, the PHA tells the family that
the flat rent amount has increased to $700. However, the PHA tells the family that the
family’s flat rent payment would only increase to $675 because flat rent changes must be
phased-in as necessary to ensure that the family’s existing rental payment does not
increase by 35 percent or more annually. The family has the option to pay either the
$675 per month, or an income-based rent of $800 per month based on the most recent
examination of the Jones’ family income. The Jones family chooses to pay the flat rent
amount of $675.
Initial Household Rent: $500
New Flat Rent: $700
New Household Rent: $675
At the next annual rent option meeting between the Jones family and the PHA, the PHA
informs the Jones family that the flat rent amount has increased to $750 per month due to
an increase in the FMR. Because the new flat rent amount represents less than a 35
percent increase from the previous rental payment, the Jones family has the option to pay
the new flat rent amount of $750 or the income-based rent amount of $800 based on the
most recent examination of family income and composition. The Jones family chooses to
pay the new flat rent amount of $750.
Initial Household Rent: $675
New Flat Rent: $750
New Household Rent: $750
Family Rent Increase Impact Analysis:
Year Initial New Flat Impact Income- New
Household Rental Analysis Based Household
Rent amount (HR x 1.35) Rent Rent
1 $500 $700 $675 $800 $675
2 $675 $750 $911.25 $800 $750
9. ANNUAL REVIEW OF RENT OPTIONS
HUD regulations at 24 CFR 960.253(a) require PHAs to annually give families the option
to choose between paying the flat rent or the income-based rent, and stipulate that PHAs
may not give families the option more than once per year, except in the case that the
family has chosen the flat rent and experiences a financial hardship. Further, 24 CFR
960.253(e) stipulates that PHAs provide sufficient information to allow a family to make
an informed choice regarding rent options. PHAs must provide at least the following
information:
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• The PHA’s policies on switching the type of rent due to financial hardship;
• The dollar amount of the flat rent and the income-based rent.
For families who choose to pay flat rents, PHAs are provided the flexibility not to
conduct income reexaminations annually. HUD regulations at 24 CFR §960.253(e)(2)
and §960.257(a)(2) provide that for families that chose to pay flat rents PHAs must
conduct reexaminations of family income at least once every 3 years, not annually. In
years when a PHA does not conduct a full reexamination of family income, PHAs are not
released from the requirement to give the family the option of paying the flat rent or the
income-based rent as calculated from the most recent examination of family income and
composition.
In order for PHAs to comply with the requirements to review rent options annually with
families, and to provide families with sufficient information to make an informed choice,
PHAs must do the following:
At initial occupancy, or in any year where a current program participating family is
paying the income-based rent:
1. Conduct a full examination of family income and composition at the first annual rent
option (Year 1);
2. Inform the family of the flat rent amount and the rent amount determined by the
examination of family income and composition;
3. Inform the family of the PHA’s policies on switching rent types due to financial
hardship; and
4. Apply the family’s rent decision at the next lease renewal.
At the second and third annual rent options, for families that choose to switch from
income-based rent to pay the flat rent:
1. PHAs may, but are not required to conduct a full examination of family income and
composition for the second and third annual rent options. If a PHA chooses not to
conduct an examination of family income for these annual rent options, PHAs must
use the income information from the examination of family income and composition
from the first annual rent option;
2. PHAs must inform the family of the updated flat rent amount, and the rent amount
determined by the most recent examination of family income and composition;
3. PHAs must inform the family of the PHA’s policies on switching rent types due to
financial hardship; and
4. PHAs must apply the family’s rent decision at the next lease renewal.
For the purpose of conducting the rent option meeting for a family that has paid the
flat rent for the previous 3 years, and for which the PHA has not conducted a re-
examination of family income and composition in the last 3 years, the PHA must
complete a full re-examination of family income and composition in order to update the
income-based rent amount.
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PHAs are reminded that the flat rent amount a family pays is not locked in for the 3-year
period. Instead, the PHA must revise the flat rent amount from year to year based on
changes to the FMR. Families currently paying the flat rent amount must be offered the
choice between the updated flat rent amount, and the previously calculated income-based
rent.
10. FLAT RENT REPORTING
PHAs are required to report the amount of a flat rent and any ceiling rent to be charged to
a household on line 10b of the form HUD-50058, as outlined in Section 3 of this Notice.
As per the requirements of Section 6 of this Notice, PHAs must consider whether
households are responsible for any utility expenses for a unit when establishing the flat
rent for a unit. In the case that a household is responsible for paying for utilities, PHAs
should report the amount of such utility allowance on line 10e of the form HUD-50058.
11. FLAT RENTS AND LOW-INCOME HOUSING TAX CREDIT PROPERTIES
For Low-Income Housing Tax Credit (LIHTC) Public Housing units, it is possible that
the minimum flat rent amount may exceed the LIHTC maximum rent. In other cases, the
HUD minimum flat rent may be less than the LIHTC maximum rent. In the event that
these amounts conflict, PHAs should set flat rents so as not to exceed the LIHTC
maximum rent.
Example 1: LIHTC Maximum Rent is Lower than 80 Percent of HUD’s FMR
• 80 percent of HUD’s FMR for a one-bedroom unit is $450
• The LIHTC maximum rent is $400
• The PHA should set its LIHTC Public Housing flat rents at $400
Example 2: 80 Percent of HUD’s FMR is Lower than LIHTC Maximum Rent
• 80 percent of HUD’s FMR for a one-bedroom unit is $400
• The LIHTC maximum rent is $450
• The PHA should set its LIHTC Public Housing flat rents at no less than $400 and
no greater than $450
Example 3: Exception Flat Rent is Lower than LIHTC Maximum Rent and 80
Percent of HUD’s FMR
• 80 percent of HUD’s FMR for a one-bedroom unit is $400
• The LIHTC maximum rent is $450
• The PHA has a HUD-approved flat rent exception request of $375
• The PHA should set its LIHTC Public Housing flat rents at $375
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12. CONTACT INFORMATION
If you have questions regarding this Notice, please contact the Public Housing
Management and Occupancy Division Flat Rent Review Team at:
flatrentexceptionrequests@hud.gov.
13. PAPERWORK REDUCTION ACT
The information collections referenced in this Notice have been approved by OMB
pursuant to the Paperwork Reduction Act under, OMB# 2577-0220 and OMB# 2577-
0226.
/s/
Dominique Blom
General Deputy Assistant Secretary for
Public and Indian Housing
Source: Legislative text reproduced verbatim
Plain English
PIH Notice 2017-23 establishes the rules under which Public Housing Agencies (PHAs) must set "flat rents" — fixed monthly rent amounts that public housing residents may choose instead of income-based rents. Under this notice, flat rents must generally be set at no less than 80 percent of the applicable Fair Market Rent (FMR) or a smaller-area equivalent, with a process available for PHAs to seek HUD approval for lower amounts when a market analysis supports it. The notice also caps annual rent increases at 35 percent, requiring a phase-in when a flat rent increase would otherwise exceed that threshold, and mandates that families be offered a choice between flat rent and income-based rent at least once per year.
Written by anthropic/claude-sonnet-4.6 · Reviewed on October 7, 2026
Plain English — not legal advice.
For Property Managers
PHAs operating public housing programs are the primary operators governed by PIH Notice 2017-23, and compliant agencies generally review their flat rent schedules within 90 days of each new fiscal year's FMR publication, updating amounts to meet the 80-percent-of-FMR floor (or applicable SAFMR equivalent). Agencies that believe local market conditions justify a lower flat rent submit a documented market analysis to HUD via the exception request process described in Section 5 of the notice, and do not implement exception rates until written HUD approval is received. Compliant PHAs also apply the 35-percent phase-in cap described in Section 8 on a case-by-case basis at each family's annual rent option meeting, and report flat rent and utility allowance amounts on the appropriate lines of form HUD-50058.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For Tenants
Public housing residents have the right, under PIH Notice 2017-23 and the underlying regulations at 24 CFR 960.253, to be offered a choice between the flat rent and the income-based rent at least once per year, and must receive enough information — including both dollar amounts and the PHA's hardship-switching policies — to make an informed decision. If a flat rent increase would raise a resident's payment by more than 35 percent, Section 8 of the notice requires the PHA to phase in the increase rather than apply it all at once. Residents who believe their PHA is not following these flat rent procedures may raise the issue directly with their PHA, contact HUD's Public Housing Management and Occupancy Division at flatrentexceptionrequests@hud.gov, or seek guidance from a local tenant-rights organization familiar with public housing rules.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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