Payment Standard
The maximum monthly assistance a PHA will pay on behalf of a Housing Choice Voucher family. Set by the PHA between 90% and 110% of the applicable Fair Market Rent (24 CFR § 982.503).
Also known as: voucher payment standard, HCV payment standard
Definition
A payment standard is the maximum monthly assistance a Public Housing Authority (PHA) will pay toward a voucher family's rent and utilities, as defined at 24 CFR § 982.4 and established under 24 CFR § 982.503.
Legal Definition
Per 24 CFR § 982.4: "'Payment standard' means the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)."
Setting the Payment Standard
Under 24 CFR § 982.503(a), a PHA must establish payment standard amounts for each unit size (by number of bedrooms). The basic range is 90% to 110% of the applicable Fair Market Rent. HUD may approve exception payment standards above 110% of FMR for designated areas with high costs (24 CFR § 982.503(c)).
Relationship to Tenant Share
The voucher subsidy equals the payment standard minus 30% of the family's adjusted monthly income (the "Total Tenant Payment"). If a family chooses a unit with rent exceeding the payment standard, they pay the full difference out of pocket (24 CFR § 982.508(b)).
Small Area Payment Standards
PHAs in designated metropolitan areas must use Small Area FMRs (SAFMRs) as the basis for payment standards, calculated at the ZIP-code level to better reflect neighborhood-level rent differences (24 CFR § 888.113(c)).
Sources
- 24 CFR § 982.503, eCFR —
ecfr - 24 CFR § 982.4, eCFR (definitions) —
ecfr - HUD.gov: Housing Choice Voucher Program —
hud-gov
Frequently asked questions
What are the core elements of Payment Standard?
Per 24 CFR § 982.4: "'Payment standard' means the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)."
Setting the Payment Standard
Under 24 CFR § 982.503(a), a PHA must establish payment standard amounts for each unit size (by number of bedrooms). The basic range is 90% to 110% of the applicable Fair Market Rent. HUD may approve exception payment standards above 110% of FMR for designated areas with high costs (24 CFR § 982.503(c)).
Relationship to Tenant Share
The voucher subsidy equals the payment standard minus 30% of the family's adjusted monthly income (the "Total Tenant Payment"). If a family chooses a unit with rent exceeding the payment standard, they pay the full difference out of pocket (24 CFR § 982.508(b)).
Small Area Payment Standards
PHAs in designated metropolitan areas must use Small Area FMRs (SAFMRs) as the basis for payment standards, calculated at the ZIP-code level to better reflect neighborhood-level rent differences (24 CFR § 888.113(c)).
Sources
CFR § 982.503, eCFR — ecfr CFR § 982.4, eCFR (definitions) — ecfr HUD.gov: Housing Choice Voucher Program — hud-gov