HUD HCV Guidebook § 4.4

The payment standard is used to calculate the monthly HAP paid on behalf of a family under the HCV program.
The HAP is determined by taking the lower of the:75

75
     24 CFR 982.505(b)

•   Payment standard minus the TTP; or
     •   Gross rent for the unit minus the TTP.
Under the HCV program, if the gross rent for the unit is lower than the payment standard, the family’s share
will be the full TTP. If the gross rent for the unit is higher than the payment standard, the family’s share will be
the TTP plus the amount by which the gross rent exceeds the payment standard. However, at initial lease up,
the family’s share cannot exceed 40 percent of the family’s adjusted gross income.76

If during the term of the HAP contract the owner changes the rent for a unit, the HAP will be recalculated using
the lower of the payment standard or the gross rent for the unit minus the TTP. During the initial term of the
lease, the owner may not raise the rent to owner.77 Also, PHAs are required to re-determine whether the rent
is reasonable before any increase in the rent to owner (see the Rent Reasonableness chapter).
If during the term of the HAP contract, the rent to owner changes, the PHA may only change the payment
standard used in the recalculation of the HAP in accordance with Section 5 of this chapter.