HUD HCV Guidebook § 5.3
Payment Standard and HAP Calculation (HUD HCV Guidebook)
Operative Text
The payment standard for a family in shared housing is the lower of the PHA’s payment standard for the family
unit size or the pro-rata share of the PHA’s payment standard for the shared housing unit size. The pro-rata
share is calculated by dividing the number of bedrooms available for occupancy by the assisted family in the
private space by the total number of bedrooms in the unit. The HAP for a family in shared housing is the lower
of the payment standard minus the TTP or the gross rent minus the TTP.
Example 8: Calculating Payment Standards for a Shared Housing Unit
Household includes mother and 8 year old PHA policy would issue family 2-
daughter bedroom voucher
Bedrooms for assisted family 2
Number of bedrooms in unit 3
Pro-rated share of unit 2/3 = .667
2-bedroom payment standard (family unit size) $400
3-bedroom payment standard (shared housing $565
unit size)
Pro-rata share of payment standard for shared $377
housing unit size ($565*.667)
Lesser of family unit size or pro-rata share of $377
payment standard for shared unit size
Shared housing unit payment standard to be $377
used
37 24 CFR § 982.615((b)(1)
38 24 CFR § 982.618(c)
39 24 CFR § 982.618(d)(1)
40 24 CFR § 982.618(d)(2)(ii)
41 24 CFR § 982.618(d)(2)(ii)
Example 9: Calculating HAP and Utility Allowance for a Shared Housing Unit
Total tenant payment $275
Contract rent $250
Payment standard $377
Applicable 3 bedroom utility allowance $175
Utility Allowance calculation ($175 * pro-rata share $117
of .667)
Gross rent (utility allowance+ contract rent) $367
HAP is the lower of
Payment standard ($377) minus TTP ($275) = $102
OR
Gross rent ($367) minus TTP ($275) = $92
HAP $92HUD Housing Choice Voucher Guidebook § 5.3 establishes how housing assistance payments (HAP) are calculated when a voucher-holding family lives in shared housing — a unit they occupy alongside other, unassisted residents. The payment standard used for the family is whichever is lower: the standard for the family's voucher bedroom size, or a pro-rata share of the standard for the full shared unit, calculated by dividing the bedrooms available to the assisted family by the total bedrooms in the unit. The actual HAP the family receives is then the lower of two figures: the applicable payment standard minus the family's total tenant payment (TTP), or the gross rent minus the TTP.
Plain English — not legal advice.
Under HUD Housing Choice Voucher Guidebook § 5.3, operators who rent shared housing units to voucher-holding families should understand that the HAP paid on behalf of the family is based on a pro-rated payment standard, not the full unit payment standard. Compliant operators typically set contract rents with awareness that the gross rent — contract rent plus the pro-rated utility allowance — directly affects the HAP calculation, since HAP is capped at the lower of the payment-standard-minus-TTP or gross-rent-minus-TTP figures. Keeping contract rents and utility arrangements clearly documented helps ensure accurate HAP calculations by the Public Housing Authority (PHA).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Families using Housing Choice Vouchers in shared housing arrangements are protected under HUD Housing Choice Voucher Guidebook § 5.3, which limits how much of the housing cost they are responsible for by tying the HAP to the lower of two calculated amounts. If a family believes their HAP has been calculated incorrectly — for example, if the wrong bedroom count or payment standard was applied — they can raise the issue with their PHA, which administers the voucher program. Tenant-rights organizations and HUD's own resources can help families understand how the pro-rata payment standard and gross rent figures should be applied in their shared housing situation.
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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