HUD HCV Guidebook § 3.7

Payment Standards for Special Purpose Voucher Programs (HUD HCV Guidebook)

HUD guidance — not codified law
In Force
Verified 11/9/2026 · Next check 11/16/2026
effective 9/25/2026FederalSection 8 HCV

Operative Text

HUD HCV Guidebook § 3.7
HUD-Veterans Affairs Supportive Housing (HUD-VASH) - On August 13, 2024, HUD published Federal Register
Notice titled “Section 8 Housing Choice Vouchers: Revised Implementation of the HUD-Veterans Affairs
Supportive Housing Program” with updated operating requirements for the HUD-VASH program administered
by local PHAs that have partnered with local Veterans Affairs (VA) medical facilities.68 In the notice, HUD
allows PHAs to establish a separate HUD-VASH exception payment standard without HUD approval or
notification.
Additionally, PHAs’ HUD-VASH exception payment standards may go up to, but no higher than 120 percent of
the published metropolitan area-wide FMRs or SAFMRs (based on the PHA's applicable FMR) specifically for
its HUD-VASH program without approval or notification to HUD. PHAs that want to establish a HUD-VASH
exception payment standard over 120 percent, as allowed by 24 CFR 982.503(d)(4), must still request

63
   Except for certain tax credit projects that meet the criteria of 24 CFR 983.301(c)(1).
64
   See 24 CFR part 983, subpart G for requirements applicable to setting PBV rents.
65
   24 CFR 983.301(f)(3)(i)
66
   24 CFR 983.301(b)(1); see also additional rent limitations at 24 CFR 983.304-983.305
67
   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.
68
   89 FR 65769 (August 13, 2024)

approval from HUD through the regular process for exception payment standards over 120 percent of the
applicable FMR outlined in Section 3.5.3 of this chapter.
Exception payment standards implemented by the PHA for HUD-VASH also apply in determining rents under
24 CFR 983.301(b) for PBV projects only when the project is comprised solely of units exclusively made
available to HUD-VASH families. This is because there can only be one contract rent for similar units per PBV
project. All rent reasonableness requirements at 24 CFR 982.507 continue to apply.
Emergency Housing Vouchers (EHV) - HUD issued guidance in Notice PIH 2021-15 which established an
alternative requirement permitting PHAs to establish separate higher payment standards for the EHVs in order
to increase the potential pool of available units for EHV families. The separate EHV payment standard must
comply with all other HCV requirements under 24 CFR 982.503 with the exceptions discussed below.
Establishing a separate EHV payment standard is at the discretion of the PHA, and the PHA is not required to
do so. PHAs are not permitted to establish a separate payment standard for the EHVs that is lower than the
regular HCV payment standard. If the PHA is increasing the regular HCV payment standard, the PHA must also
increase the EHV payment standard if it would be otherwise lower than the new regular HCV payment
standard. In addition, HUD established an alternative requirement to allow the PHA to establish a payment
standard amount for a unit size at any level between 90 percent and 120 percent (as opposed to 110
percent) of the published FMR for that unit size. HUD approval is not required to establish an EHV payment
standard within this range.
PHAs may also still request approval for exception EHV payment standards above 120 percent of the
applicable FMR/SAFMR from HUD. All rent reasonableness requirements at 24 CFR 982.507 continue to
apply to EHV units, regardless of whether the PHA has established an alternative or exception EHV payment
standard.
Stability Vouchers (SV) - HUD issued guidance in Notice PIH 2022-24 which established an alternative
requirement permitting PHAs to establish separate higher payment standards for SVs to increase the potential
pool of available units for SV families. The separate SV payment standard must comply with all other HCV
requirements under 24 CFR 983.503 with the exceptions discussed below.
Establishing a separate SV payment standard is at the discretion of the PHA and the PHA is not required to do
so. PHAs are not permitted to establish a separate payment standard for the SVs that is lower than the regular
HCV payment standard. For PHAs administering both SVs and EHVs, the SV payment standard must not be
less than the EHV payment standard. If the PHA increases the regular HCV payment standard, the PHA must
also increase the SV payment standard if it would be otherwise lower than the new regular HCV payment
standard. In addition, HUD established an alternative requirement to allow the PHA to establish a payment
standard amount for a unit size at any level between 90 percent and 120 percent (as opposed to 110
percent) of the published FMR for that unit size. HUD approval is not required to establish an SV payment
standard within this range.
PHAs may also still request approval for exception SV payment standards above 120 percent of the applicable
FMR/SAFMR from HUD if needed. All rent reasonableness requirements at 24 CFR 982.507 continue to
apply to SV units, regardless of whether the PHA has established an alternative or exception SV payment
standard.
Source: Legislative text reproduced verbatim
Plain English

HUD Housing Choice Voucher Guidebook § 3.7 establishes how Public Housing Authorities (PHAs) may set payment standards for three special-purpose voucher programs: HUD-VASH (for veterans), Emergency Housing Vouchers (EHV), and Stability Vouchers (SV). For each program, PHAs have the flexibility to set separate, higher payment standards—up to 120 percent of the applicable Fair Market Rent (FMR)—without needing HUD approval, in order to expand the pool of available housing units for these populations. Payment standards above 120 percent of the FMR require formal HUD approval, and rent reasonableness requirements under 24 CFR 982.507 continue to apply across all three programs regardless of which payment standard is in effect.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 26, 2026

Plain English — not legal advice.

For Property Managers

Under HUD Housing Choice Voucher Guidebook § 3.7, PHAs administering HUD-VASH, EHV, or SV programs may set payment standards higher than those used for the standard HCV program, which can affect the subsidy amounts available for units rented to participants in these programs. Operators who own or manage units housing veterans, emergency housing voucher holders, or stability voucher holders should confirm with the local PHA what payment standard applies to their specific program, as it may differ from the regular HCV rate. Regardless of the applicable payment standard, rent reasonableness requirements under 24 CFR 982.507 remain in effect, meaning the rent charged must be reasonable in comparison to similar unassisted units in the market.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

HUD Housing Choice Voucher Guidebook § 3.7 means that if you hold a HUD-VASH, Emergency Housing Voucher, or Stability Voucher, your local PHA may have established a higher payment standard than the regular Housing Choice Voucher program, potentially making a broader range of units accessible to you. These elevated payment standards—set at the PHA's discretion—are designed to increase housing options for participants in these special-purpose programs. If you believe your PHA's payment standard is limiting your housing search or has not been properly applied, you may contact your local PHA for clarification, reach out to a tenant-rights or housing advocacy organization, or consult the U.S. Department of Housing and Urban Development's resources for voucher holders.

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.

Effective Timeline

Current
Sep 25, 2026
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Related Rules

§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 0770-01-05-.05
CONFLICT OF INTEREST.

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