24 C.F.R. § 891.420
§ 891.420 Overcrowded and underoccupied units. (24 CFR Part 891)
Operative Text
If the Owner determines that because of change in household size, an assisted unit is smaller than appropriate for the eligible household to which it is leased, or that the assisted unit is larger than appropriate, project rental assistance payment with respect to the unit will not be reduced or terminated until the eligible household has been relocated to an appropriate alternate unit. If possible, the Owner will, as promptly as possible, offer the household an appropriate alternate unit. The Owner may receive vacancy payments for the vacated unit if the Owner complies with the requirements of § 891.445.
Under § 891.420, when a household's size changes so that their assisted unit becomes either too small or too large for them, the rental assistance tied to that unit cannot be cut off or reduced until the household has actually moved to a suitably sized replacement unit. The owner is expected to offer an appropriate alternate unit as quickly as circumstances allow. Once the household vacates the original unit, the owner may be eligible to receive vacancy payments for it, provided the conditions set out in § 891.445 are met.
Plain English — not legal advice.
Under § 891.420, compliant owners track changes in household composition and assess whether a unit has become over- or underoccupied as a result. When a mismatch is identified, operators generally document the determination, work promptly to identify and offer an appropriately sized alternate unit within the project, and continue project rental assistance payments on the original unit until the household has successfully relocated. Owners who wish to claim vacancy payments on the vacated unit should also ensure they satisfy the separate requirements outlined in § 891.445.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 891.420 protects assisted households from losing their rental assistance simply because their unit size no longer matches their household size — that assistance must remain in place until a suitable alternate unit is actually available and the household has moved. Tenants in this situation have a right to be offered an appropriately sized unit as promptly as possible, and a premature reduction or termination of assistance could be raised as a violation in any relevant administrative proceeding. Tenants who believe their assistance has been improperly reduced before relocation occurs may wish to contact their local HUD field office, a HUD-approved housing counselor, or a tenant-rights organization for general information about available options.
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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