HUD HCV Guidebook § 3.1

PHAs may establish a payment standard amount within the basic range without HUD approval or prior
notification to HUD.33 The basic range is between 90 percent and 110 percent of the applicable FMR. The
PHA's basic range payment standard amount for each unit size may be based on the same percentage of the
published FMR (i.e., all payment standard amounts may be set at 100 percent of the FMR), or the PHA may
establish different payment standard amounts for different unit sizes (for example, 90 percent for efficiencies,
100 percent for 1-bedroom units, 110 percent for larger units).34

31
   24 CFR 982.503(b)
32
   24 CFR 888.113(b)
33
   24 CFR 982.503(c)(1)
34
     24 CFR 982.503(c)(2)

Whenever the FMR increases or decreases, the PHA must ensure that its payment standards remain within
the basic range. PHAs must revise its payment standard amounts and schedule no later than 3 months
following the effective date of the published FMR if revisions are necessary to stay within the basic range. 35