HUD HCV Guidebook § 3.3
Phase-out of Payment Standards Based on the 50th Percentile Rent: Success (HUD HCV Guidebook)
Operative Text
Rate As of June 6, 2024, HUD will no longer approve success rate payment standards.36 PHAs that had a HUD approved success rate payment standard prior to June 6, 2024, may continue to use the approved payment standard amount.37 However, the actual dollar amount of the approved success rate payment standard may never exceed the amount established by the PHA as of June 6, 2024. The approved success rate payment standard may remain in effect until the applicable FMR exceeds the approved amount. PHAs are encouraged to assess whether they should transition to the applicable FMR when that amount exceeds the maximum payment standard the PHA established under its success rate payment standards.
Under HUD Housing Choice Voucher Guidebook § 3.3, HUD stopped approving new 'success rate' payment standards as of June 6, 2024. Public Housing Authorities (PHAs) that already had an approved success rate payment standard before that date may keep using it, but the dollar amount is permanently capped at whatever level the PHA had set by June 6, 2024. Once the applicable Fair Market Rent (FMR) rises above that capped amount, the success rate payment standard is effectively superseded, and PHAs are encouraged to shift to the FMR-based standard at that point.
Plain English — not legal advice.
For property owners participating in the Housing Choice Voucher program, § 3.3 means that the payment standard a PHA uses to calculate subsidy amounts is now governed by a firm cap if the PHA was operating under a success rate payment standard before June 6, 2024. Compliant operators generally stay informed about which payment standard their local PHA is applying, since a transition from a success rate standard to the FMR-based standard can affect the subsidy calculation for units they lease. Tracking annual FMR updates published by HUD helps owners anticipate when a PHA may shift its payment standard framework under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 3.3, the payment standard used to calculate your Housing Choice Voucher subsidy may be affected by whether your PHA was operating under a success rate payment standard before June 6, 2024, and whether that amount still exceeds the current FMR. Tenants can ask their PHA directly which payment standard is in effect and how it is calculated, since this figure influences the maximum subsidy available toward rent. If you believe the payment standard is being applied incorrectly, tenant-rights organizations and HUD's formal complaint processes are among the general paths available for raising concerns.
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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