24 C.F.R. § 982.507
§ 982.507 Rent to owner: Reasonable rent. (24 CFR Part 982)
Operative Text
(a) PHA determination. (1) Except as provided in paragraph (c) of this section, the PHA may not approve a lease until the PHA determines that the initial rent to owner is a reasonable rent. (2) The PHA must redetermine the reasonable rent: (i) Before any increase in the rent to owner; (ii) If there is a 10 percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary. (iii) If directed by HUD. (3) The PHA may also redetermine the reasonable rent at any other time. (4) At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or redetermined by the PHA. (b) Comparability. The PHA must determine whether the rent to owner is a reasonable rent in comparison to rent for other comparable unassisted units. To make this determination, the PHA must consider: (1) The location, quality, size, unit type, and age of the contract unit; and (2) Any amenities, housing services, maintenance and utilities to be provided by the owner in accordance with the lease. (c) Units assisted by low-income housing tax credits or assistance under HUD's HOME Investment Partnerships (HOME) program. (1) General. For a unit receiving low-income housing tax credits (LIHTCs) pursuant to section 42 of the Internal Revenue Code of 1986 or receiving assistance under HUD's HOME Program (for which the regulations are found in 24 CFR part 92), a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME-assisted units in the project that are not occupied by families with tenant-based assistance. (2) LIHTC. If the rent requested by the owner exceeds the LIHTC rents for non-voucher families, the PHA must determine the rent to owner is a reasonable rent in accordance with paragraph (b) of this section and the rent shall not exceed the lesser of the: (i) Reasonable rent; and (ii) The payment standard established by the PHA for the unit size involved. (3) HOME program. If the rent requested by the owner exceeds the HOME rents for non-voucher families, the PHA must determine the rent to owner is a reasonable rent in accordance with paragraph (b) of this section and the rent shall not exceed the lesser of the: (i) Reasonable rent; and (ii) The payment standard established by the PHA for the unit size involved. (d) Owner certification of rents charged for other units. By accepting each monthly housing assistance payment from the PHA, the owner certifies that the rent to owner is not more than rent charged by the owner for comparable unassisted units in the premises. The owner must give the PHA information requested by the PHA on rents charged by the owner for other units in the premises or elsewhere.
Under 24 CFR Part 982 § 982.507, a Public Housing Authority (PHA) must verify that any rent charged by a landlord participating in the Housing Choice Voucher program does not exceed a 'reasonable rent' — a figure determined by comparing the unit to similar unassisted rentals in the area, accounting for factors like location, size, age, amenities, and services. This reasonableness check must occur before a lease is approved, before any rent increase, and whenever the Fair Market Rent drops by 10 percent or more within a defined period. Special rules apply to units financed through Low-Income Housing Tax Credits or the HOME program, where internal rent comparisons within the same project may substitute for broader market comparisons under certain conditions.
Plain English — not legal advice.
Owners participating in the Housing Choice Voucher program under 24 CFR Part 982 § 982.507 are subject to PHA rent reasonableness determinations before a lease is executed and again before any rent increase takes effect. Compliant operators typically maintain transparency about rents charged for comparable unassisted units in the same property, since by accepting each monthly housing assistance payment an owner is certifying that the voucher rent does not exceed those comparable rents. Owners of LIHTC or HOME-assisted units should be aware that if the requested rent exceeds what non-voucher tenants in the same project pay, the PHA will apply a standard market comparability analysis and cap the rent at the lesser of the reasonable rent or the applicable payment standard.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 982 § 982.507, voucher holders have a regulatory assurance that the rent their landlord receives from the PHA has been independently verified as reasonable compared to similar unassisted units in the area. If a tenant believes a rent increase has not gone through the required PHA reasonableness redetermination, they may raise this concern directly with their local PHA, which administers the voucher program and is responsible for enforcing this provision. Tenant-rights organizations familiar with HCV program rules can help explain how the reasonableness process works and what options are generally available when a tenant believes the process was not properly followed.
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.
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