Click here to view a list of payment standards and utility allowances.
For more information about the Housing Choice Voucher Program, please call 651-298-5158.
How does the PHA determine acceptable rental amounts?
Property owners often ask the PHA what rent they can charge. The PHA appreciates that deciding what rent to charge for your units is a business decision that each owner uniquely considers. The PHA’s duty lies in acknowledging that business decision, while verifying the rent is both reasonable on the market, and affordable for the client.
What is Rent Reasonableness?
"Rent Reasonableness" is a requirement by HUD to determine that contract rent is "reasonable" when looking at other market rate units. In order to determine rent reasonableness, the PHA must be able to document at least three other market rate units that are:
- in the same zip code,
- have the same number of bedrooms,
- are the same type of units (single family home, multi-family, etc.),
- and have rents that are at or above the proposed rent for the prospective Section 8 unit.
Other factors the PHA may consider are:
- Size
- Maintenance
- Quality
- Age
- Amenities
- Housing Services
Rent Reasonableness is required to ensure that the Housing Choice Voucher program does not artificially inflate rents in the community, and that a fair rent is paid for units selected for participation in the program.
How does the PHA review Affordability?
When an HCV participant moves into a unit their portion of the rent cannot be more than 40% of their adjusted gross income. When a new client moves into a unit, the PHA will work with the landlord to ensure the client’s rent portion does not exceed 40% of their total income.
However, at lease renewals, rent portions may go above that 40%. The PHA evaluates rent increases by reviewing the impact on the participant, ensuring the increase matches market standards.
