HUD HCV Guidebook § 1

PHAs must1 ensure that rents charged by owners to Housing Choice Voucher (HCV) program participants are
reasonable. The PHA must2 compare the rent for the voucher unit to rents for similar unassisted units in the
marketplace.
Ensuring rent reasonableness is very important for effective program operations. If a PHA approves rents that
are too high, government funds are wasted and limited housing subsidies are squandered. Alternatively, if
rents are approved at levels lower than comparable units in the private market, better owners and higher
quality units are discouraged from participating in the program. In addition, families may be inappropriately
restricted in where they can live.
Determining rent reasonableness is especially critical when a PHA uses its authority to set a payment
standard higher than the FMR for all or a portion of its jurisdiction. Some owners will apply pressure to
increase their rents to, or closer to, the payment standard. PHAs should be careful to not overpay, or the
effect will be to inflate rents in a portion of the market.

1
    24 CFR § 982.507(b)
2
    24 CFR § 982.507(b)

Rent Reasonableness                                                                                                                                                         2