HUD HCV Guidebook § 8.2
Payment Standard and HAP Calculation (HUD HCV Guidebook)
Operative Text
As a result of the Housing Opportunities and Modernization Act of 2016 (HOTMA), the PHA must50 revise the
payment standards for manufactured home space rental assistance, effective April 18, 2017.
The payment standard amount used for a unit assisted under the manufactured home space rental must be
the same payment standard amount used for regular rental units under the PHA’s HCV program.
As well, separate FMRs for manufactured home space rentals are no longer applicable. Because the family’s
housing costs subsidized by the HCV program now include the family’s monthly payments to amortize the
purchase of the home, the rationale for establishing a separate FMR (and by extension a reduced payment
standard) no longer exists.
The program regulation at 24 CFR § 982.503(a)(3) that provides the PHA voucher payment standard schedule
shall establish a “single” payment standard amount for each unit size covers the manufactured home space
rental special housing type as well as all other rental units under the PHA HCV program.
The monthly HAP for a manufactured home space rental is the lower of:
• The PHA payment standard minus the family’s total tenant payment; or
• The rent of the manufactured home space (including other eligible housing expenses) minus the family
total tenant payment.
The space rent is the sum of the rent to the owner for Can a PHA Approve an Exception Payment
the manufactured home space, any charges for Standard for a Lot Rent for a Manufactured
maintenance and management provided by the owner, Home?
the utility allowance for tenant-paid utilities and Yes, a PHA may approve an exception payment
monthly payments made by the family to amortize the standard for a lot rent for a manufactured home if
cost of purchasing the manufactured home, including the amount falls within the basic range. Provided
any required insurance and property taxes. there is justification for an exception payment
By law, whenever a family moves to a new unit where standard, and based on how much over the FMR
the rent exceeds the payment standard, the family for lot space the exception is, an exception
must51 not pay more than 40 percent of its adjusted payment standard can be approved by the PHA.
monthly income for rent. The 40% limit would be
applicable to the new calculation of space rent when
families are first assisted in the space (not to families that are already assisted and the PHA is revising their
subsidy calculation in accordance with PIH Notice 2017-18).
50 Housing Opportunity Through Modernization Act of 2016
51 24 CFR § 982.508Under HUD Housing Choice Voucher Guidebook § 8.2, as updated by HOTMA in 2016, manufactured home space rentals must use the same payment standard as regular rental units in a PHA's HCV program—separate FMRs for this housing type no longer apply. The monthly housing assistance payment (HAP) is calculated as the lower of the payment standard minus the family's total tenant payment, or the actual space rent minus that payment. When a family first moves into a space where rent exceeds the payment standard, the family's share may not exceed 40 percent of adjusted monthly income.
Plain English — not legal advice.
Under HCV Guidebook § 8.2, operators offering manufactured home space rentals should be aware that PHAs apply the same payment standard schedule used for regular rental units, meaning no separate or reduced FMR applies to lot rents. The HAP a PHA pays is capped at the lower of the payment standard or the actual space rent, each reduced by the family's total tenant payment. PHAs may approve exception payment standards for lot rents that fall within the basic range, provided adequate justification exists.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 8.2 of the HUD HCV Guidebook establishes that when you rent a manufactured home space with a voucher, the subsidy calculation follows the same payment standard rules as other HCV units. If you move to a space where the rent exceeds the payment standard, your share of the rent is capped at 40 percent of your adjusted monthly income under 24 CFR § 982.508. Tenants who believe their HAP has been calculated incorrectly may raise the issue with their local PHA or contact a 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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