24 C.F.R. § 886.118
§ 886.118 Amount of housing assistance payments in projects receiving other HUD assistance. (24 CFR Part 886)
Operative Text
(a) For any Section 221(d)(3) BMIR, Section 236, or Section 202 project, the Housing Assistance Payment shall be the amount by which the rent payable by the eligible Family under Section 8 is less than the subsidized rent (which subsidy shall not be reduced by reason of any Section 8 assistance). (b) In no event may any tenant benefit from more than one of the following subsidies: Rent Supplements, Section 236 deep subsidies, Section 23 leasing assistance, and Section 8 housing assistance.
Section 886.118 addresses how Housing Assistance Payments are calculated when a project already receives certain other HUD subsidies, such as those tied to Section 221(d)(3) BMIR, Section 236, or Section 202 programs. In those cases, the payment is sized to cover the gap between what an eligible family owes under Section 8 and the already-reduced subsidized rent, while keeping the underlying subsidy intact. The provision also establishes a firm limit: no tenant may simultaneously draw on more than one of several named federal rental subsidies, preventing any stacking of overlapping benefits.
Plain English — not legal advice.
Operators of Section 221(d)(3) BMIR, Section 236, or Section 202 properties should understand that under § 886.118, the Housing Assistance Payment for a Section 8-eligible family is calculated as the difference between the family's Section 8 contribution and the project's subsidized rent—and the existing subsidy must not be reduced to offset that payment. Compliant operators generally maintain clear records showing which subsidy program applies to each unit and each assisted household, ensuring no tenant is credited under more than one of the named programs simultaneously. Keeping subsidy-layering documentation current is a standard practice for properties subject to this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 886.118, if you live in a HUD-assisted project such as a Section 236 or Section 202 development and also receive Section 8 assistance, the Housing Assistance Payment is intended to bridge the gap between your Section 8 contribution and the subsidized rent without reducing the project's existing subsidy. The provision also means that tenants are not entitled to receive more than one of the listed federal rental subsidies at the same time. If you believe your assistance has been calculated incorrectly or that subsidy benefits have been improperly withheld or combined, you may raise the issue with your local HUD field office, a HUD-approved housing counselor, or a tenant-rights organization familiar with federally assisted housing.
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 10, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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