HUD HCV Guidebook § 2.3
Payment Standard and HAP Calculation (HUD HCV Guidebook)
Operative Text
The payment standard for SRO housing is 75 percent of the PHA’s 0-bedroom payment standard
amount, or the HUD-approved area exception payment standard amount, on the PHA’s payment
standard schedule. The Housing Assistance Payment (HAP) for an assisted occupant in an SRO facility
is the lower of the SRO payment standard amount minus the Total Tenant Payment (TTP) or the gross
rent for the unit minus the TTP. Example 1 shows how to calculate the payment standard for a sample
SRO unit. Example 2 shows how to calculate the HAP for the same sample unit.
Example 1: Calculating Payment Standards for an SRO Unit
The payment standard is 75% of the PHA’s 0-bedroom payment
standard amount, or HUD-approved exception payment standard
amount (listed on the PHA’s payment standard schedule.
PHA 0-bedroom payment standard (listed on $500
PHA’s payment standard schedule)
SRO payment standard to be used $500 X .75 = $375
7 24 CFR § 982.605(b)(2)(ii)(D)
8 24 CFR § 982.605(b)(3)(i)
9 24 CFR § 982.605(b)(3)(iii)
10 24 CFR § 982.605(b)(3)(ii)
11 24 CFR § 982.605(b)(4)
12 24 CFR § 982.605(b)(4)
Example 2: Determining HAP for an SRO Unit
Total tenant payment $205
SRO payment standard $375
Gross rent $315
HAP is the lower of
SRO payment standard ($375) minus TTP ($110) = $170
Gross rent ($315) minus TTP ($205) = 110
HAP $110HUD Housing Choice Voucher Guidebook § 2.3 establishes how housing assistance payments are calculated for Single Room Occupancy (SRO) units. The payment standard for an SRO is set at 75 percent of the local Public Housing Authority's zero-bedroom payment standard. The actual Housing Assistance Payment (HAP) a tenant receives is whichever is lower: the SRO payment standard minus the tenant's Total Tenant Payment, or the unit's gross rent minus the Total Tenant Payment.
Plain English — not legal advice.
Under HUD Housing Choice Voucher Guidebook § 2.3, operators of SRO facilities participating in the Housing Choice Voucher program can expect the HAP they receive to be calculated using the lower of two formulas — one based on the local payment standard and one based on actual gross rent. Compliant SRO operators typically ensure their gross rent figures are accurately reported to the PHA, since the gross rent directly affects which formula yields the lower HAP amount. Keeping unit rents and utility allowances well-documented helps facilitate accurate HAP determinations by the PHA.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Housing Choice Voucher Guidebook § 2.3 governs how much housing assistance an SRO voucher holder receives, which depends on both the local payment standard and the actual rent charged for the unit. Tenants in SRO facilities should be aware that their Total Tenant Payment (TTP) is subtracted from whichever figure — payment standard or gross rent — is lower, directly affecting their out-of-pocket share. If a tenant believes their HAP has been calculated incorrectly, general enforcement paths include raising the issue with the administering PHA, contacting HUD directly, or reaching out to a local tenant-rights organization for guidance.
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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