24 C.F.R. § 888.320
§ 888.320 One-time Contract Rent determination. (24 CFR Part 888)
Operative Text
(a) Determining the amount of the new Contract Rent. Project owners eligible for retroactive payments, as described in § 888.301(c), may request a one-time Contract Rent determination, to be effective as described in paragraph (c) of this section. The request for a one-time rent determination must be made when submitting a request for retroactive payments, as described in § 888.315. If no claim for retroactive payments is made, an owner may submit only the request for a one-time rent determination, provided the owner is eligible for retroactive payments. The new Contract Rent under this provision will be the greater of: (1) The Contract Rent currently approved by HUD (or the Contract Administrator); or (2) An amount equal to the applicable AAF multipled by the Contract Rent minus debt service, calculated for each year from October 1, 1979, to May 31, 1991. (b) Currently approved rent. The Contract Rent currently approved by HUD (or the Contract Administrator) is the Contract Rent stated in the most recent amendment to the HAP Contract signed by both HUD (or the Contract Administrator) and the owner, or as shown on HUD Form 92458 (Rental Schedule) if the most recent amendment to the HAP Contract cannot be located. (c) Effective date of new Contract Rent. The new Contract Rent, determined under paragraph (a) of this section, will be effective on May 31, 1991.
Under 24 CFR Part 888 § 888.320, project owners who qualify for retroactive payments may request a one-time recalculation of their Contract Rent. The recalculated rent is set at whichever is higher: the rent already approved by HUD or the Contract Administrator, or an amount derived by applying the applicable Annual Adjustment Factor (AAF) to the Contract Rent minus debt service for each year from October 1, 1979, through May 31, 1991. Regardless of when the request is processed, the new Contract Rent takes effect on May 31, 1991.
Plain English — not legal advice.
Under § 888.320, project owners eligible for retroactive payments generally submit the one-time Contract Rent determination request alongside any retroactive payment claim, or separately if no retroactive claim is being made but eligibility still exists. Compliant operators document the currently approved Contract Rent by referencing the most recent countersigned HAP Contract amendment or, if that document is unavailable, HUD Form 92458. Maintaining organized records of debt service figures and prior rent amendments supports accurate calculation of the AAF-based alternative rent amount.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 888.320 governs how a project owner's Contract Rent may be recalculated under the Section 8 program, which can affect the rent levels at a federally assisted property. Tenants living in projects subject to a one-time rent determination under § 888.320 may want to review any notices about rent changes and understand that the effective date of any adjusted Contract Rent is fixed at May 31, 1991. Tenant-rights organizations or a HUD field office can be useful resources for understanding how a Contract Rent adjustment under this provision may relate to tenant-paid rent or housing assistance payments.
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 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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