HUD HCV Guidebook § 3
Establishing Payment Standards (HUD HCV Guidebook)
Operative Text
PHAs are required to establish payment standards for each unit size in an FMR/SAFMR area.31 Unit size is
measured by the number of bedrooms in a unit. For each unit size, the PHA may establish a single payment
standard for the whole FMR area or establish a separate payment standard amount for each designated part
of the FMR area. For a PHA that employs SAFMRs, each ZIP Code will be considered a “designated part” of
the FMR area. These payment standard amounts comprise the PHA's payment standard schedule.
The payment standards may be within several ranges depending on facts about the rental market. Payment
standards may be established:
• Within the “basic range,” which is between 90 percent to 110 percent of the published applicable
FMR.
• As exception payment standards above 110 percent of the published FMR. See Section 3.5 of this
chapter for guidance as there are varying requirements (either HUD notification or HUD approval)
depending on the exception payment standard amount requested, the PHA’s success rate, and the
rent burden of families in the PHA’s HCV program.
• Payment standards below 90 percent of the published applicable FMR. See Section 3.4 of this
chapter for guidance as this requires HUD approval.
In areas transitioning from FMRs to SAFMRs, HUD will compare the preliminary SAFMRs with the final FMRs
from the prior year and establish the final SAFMRs at a level that is not less than 90 percent of the prior-year
FMRs.32Under HUD Housing Choice Voucher Guidebook § 3, Public Housing Authorities (PHAs) must set payment standards for every unit size within their Fair Market Rent (FMR) or Small Area FMR (SAFMR) area, with the standard amount representing the maximum subsidy used to calculate housing assistance. The basic range for these standards runs from 90 to 110 percent of the published FMR, though PHAs may seek exception payment standards above that ceiling or, with HUD approval, set standards below the floor. In SAFMR areas, each ZIP code is treated as its own designated part of the FMR area, and during transitions from FMRs to SAFMRs, final SAFMRs cannot fall below 90 percent of the prior year's FMRs.
Plain English — not legal advice.
Under HUD Housing Choice Voucher Guidebook § 3, the payment standard set by a PHA determines the subsidy ceiling used when calculating a voucher holder's housing assistance payment, which in turn affects how rent is negotiated for HCV units. Operators who manage properties in multiple ZIP codes within an SAFMR area should be aware that each ZIP code may carry a distinct payment standard, potentially affecting the subsidy amount available to prospective tenants. Staying informed about a local PHA's current payment standard schedule — including any approved exception payment standards — helps property managers understand the subsidy framework applicable to their units.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Housing Choice Voucher Guidebook § 3 governs how PHAs set the payment standards that form the basis for calculating your housing assistance payment, meaning the standard directly influences how much of your rent the voucher program can cover. If you believe the payment standard in your area is too low to help you find suitable housing, you may inquire with your local PHA about whether exception payment standards have been requested or approved for your area. Tenant-rights organizations and HUD-approved housing counseling agencies can help you understand how your PHA's payment standard schedule applies to your voucher and what options may be available to you.
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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