24 C.F.R. § 982.508
§ 982.508 Maximum family share at initial occupancy. (24 CFR Part 982)
Operative Text
At the time the PHA approves a tenancy for initial occupancy of a dwelling unit by a family with tenant-based assistance under the program, and where the gross rent of the unit exceeds the applicable payment standard for the family, the family share must not exceed 40 percent of the family's adjusted monthly income. The determination of adjusted monthly income must be based on verification information received by the PHA no earlier than 60 days before the PHA issues a voucher to the family.
Under 24 CFR Part 982 § 982.508, when a family using a Housing Choice Voucher first moves into a unit whose gross rent exceeds the applicable payment standard, the portion of rent the family pays out of pocket is capped at 40 percent of the family's adjusted monthly income at that moment. The income figure used to calculate this cap must come from verification data gathered no more than 60 days before the housing authority issued the voucher. This rule applies only at the point of initial occupancy, not necessarily throughout the entire tenancy.
Plain English — not legal advice.
Under § 982.508, property owners and managers working with Housing Choice Voucher holders should be aware that a PHA will not approve a tenancy at initial occupancy if the family's share of the gross rent would exceed 40 percent of their adjusted monthly income when the unit's gross rent is above the payment standard. Compliant operators typically coordinate with the PHA during the approval process to confirm that the proposed rent level clears this threshold before a lease is executed. Keeping proposed rents aligned with payment standards or ensuring the family's income supports the share can help avoid a failed tenancy approval.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 982.508 establishes a protection for voucher holders at the time they first move into a unit: if the unit's gross rent is above the payment standard, the housing authority is required to verify that your out-of-pocket share does not exceed 40 percent of your adjusted monthly income before approving the tenancy. If you believe a tenancy was approved in a way that did not comply with this cap, you may raise the issue with your local PHA, document the income verification timeline, or reach out to a tenant-rights organization familiar with HUD programs for general guidance. Understanding this rule can help voucher holders evaluate whether a proposed unit is likely to receive PHA approval before signing any agreements.
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 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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