HUD HCV Guidebook § 2.6
Applicability of SAFMRs to Moving to Work (MTW) agencies (HUD HCV Guidebook)
Operative Text
MTW PHAs can set alternative rent policies, outside of the standard regulations governing the use of FMRs in setting payment standards with approval from HUD. MTW PHAs administering the HCV program can exercise flexibility when establishing rent in accordance with the terms of its respective MTW Agreement and approved Annual MTW Plan or MTW Supplement to the Annual PHA Plan. However, MTW PHAs cannot set payment 26 For tax credit units that meet the criteria of 24 CFR 983.301(c)(1), including the criterion that the tax credit rent exceeds the applicable FMR or any exception payment standard, the maximum rent is the lowest of (i) An amount determined by the PHA in accordance with the Administrative Plan, not to exceed the tax credit rent minus any utility allowance; (ii) The reasonable rent; or (iii) The rent requested by the owner. See also additional rent limitations at 24 CFR 983.304-983.305. 27 24 CFR 982.635(b)(4) 28 24 CFR 982.635(b)(3) standards for Special Purpose Vouchers (SPVs) that are inconsistent with the requirements in the Notice of Funding Opportunity (NOFO)/operating requirements.29 MTW PHAs that choose to adopt alternative payment standards are strongly encouraged to ensure that HCV program participants have similar access to a wide range of communities as they would under SAFMRs. If an MTW PHA has not exercised flexibility through its Annual MTW Plan or MTW Supplement to the Annual PHA Plan, the SAFMR requirements will apply to the MTW PHA, and the MTW PHA will be required to use SAFMRs in place of metropolitan-wide FMRs if the PHA jurisdiction is located within a designated Small Area FMR metropolitan area. Any MTW PHA that does not operate in a metropolitan area where the use of SAFMRs is mandatory may choose to adopt SAFMRs, following the procedures outlined in Notice PIH 2024-34.
Under HUD Housing Choice Voucher Guidebook § 2.6, Public Housing Authorities (PHAs) that participate in the Moving to Work (MTW) demonstration program have the ability to set alternative rent and payment standard policies outside the standard Fair Market Rent (FMR) framework, provided HUD approves those alternatives through the MTW Agreement and Annual MTW Plan. However, this flexibility has limits: MTW PHAs cannot set payment standards for Special Purpose Vouchers that conflict with applicable NOFO or operating requirements. If an MTW PHA has not formally exercised its flexibility through an approved plan, the Small Area FMR (SAFMR) requirements automatically apply, meaning the PHA must use SAFMRs instead of metropolitan-wide FMRs when located in a designated SAFMR metropolitan area.
Plain English — not legal advice.
Property owners and managers participating in the Housing Choice Voucher program should be aware that under § 2.6, the payment standards applied to their units may differ depending on whether the administering PHA is an MTW agency that has adopted alternative policies. Compliant operators generally stay informed about whether their local PHA operates under an MTW Agreement with HUD-approved alternative payment standards or defaults to SAFMR-based payment standards. Understanding which framework governs the applicable PHA helps owners anticipate how maximum rents and payment standards are calculated for their jurisdiction.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
As a Housing Choice Voucher participant, § 2.6 is relevant because the payment standards that determine how much assistance you receive may be set differently depending on whether your PHA is an MTW agency with HUD-approved alternative policies or one that follows standard SAFMR requirements. If your PHA has not exercised MTW flexibility through an approved plan, SAFMR rules apply, which are designed to give voucher holders access to a broader range of communities. Tenants who have questions about how their PHA's payment standards are set can request information from their local PHA, review the PHA's Annual Plan, or reach out to a tenant-rights organization for general guidance.
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 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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