HUD HCV Guidebook § 2.3

The gross rent represents the entire housing cost.20 It is calculated by adding the rent to the owner
and the utility allowance for the unit. If all the utilities are included in the rent, the rent to the owner
and the gross rent will be the same.

10
   24 CFR 5.630(b)(2)(ii)(b)
11
   24 CFR 5.630(b)(1)
12
   24 CFR 5.630(b)(2)(iii)(a)
13
   24 CFR 5.630(b)(2)(ii)(c)
14
   24 CFR 5.630(b)(2)(ii)(c)
15
   24 CFR 5.630(b)(2)(iii)(B)
16
   24 CFR 5.630(b)(2)(iii)(B)
17
   24 CFR 982.301(b)
18
   24 CFR 982.301(b)
19
   24 CFR 982.301(b)
20
   24 CFR 982.4 and 982.517

In the example 5, a scenario is presented demonstrating the different components involved in
helping families determine the maximum gross rent and the potential total tenant payment
associated with different gross rent amounts. The maximum gross rent is calculated for a family to
help them determine what the maximum amount of rent plus utilities they could select based on
their maximum initial rent burden and the maximum subsidy the PHA can pay.

         Example 5: Helping Family Determine Maximum Gross Rent Amount
         Total tenant payment (TTP)               $210
         Maximum initial rent burden              $280
         Payment standard                         $450
         Maximum subsidy                          $240
         TTP when the gross rent (rent +          $210
         utilities) at or below the payment
         standard
         TTP when the gross rent (rent +          The family will pay between $211 and
         utilities) is higher than the payment    $240, the maximum initial rent burden
         standard                                 allowed
         Maximum gross rent for selected unit     The maximum gross rent is the
                                                  maximum initial rent burden of $280
                                                  plus the maximum subsidy the PHA can
                                                  pay of $240. In this example, the
                                                  maximum gross rent is $520.