# What Are HUD Payment Standards?

The payment standard is the maximum subsidy a PHA can pay on behalf of a family, and a PHA establishes payment standards based on the HUD-established Fair Market Rents (FMR) for the area. The payment standards must be within an established range (90-110%) of the FMR.

Do payment standards include utilities?

The Payment Standard includes a Utility Allowance component of $ 50. So, if an apartment includes utilities, the rent would have to be below $710 to be within the Payment Standard.

*Effect of Utility Allowance Increases on Section 8 Housing Choice ...*

How are payment standards calculated?

In the median rent method, HUD determines the exception payment standard amount by multiplying the FMR times a fraction of which the numerator is the median gross rent of the exception area and the denominator is the median gross rent of the entire FMR area.

*24 CFR Â§ 982.503 - Payment standard amount and schedule.*

How do payment standards work?

Payment standards are the amount your voucher will pay. You will pay some of that amount, and your Housing Authority will pay the rest. For example: Jane's payment standard is $1,000. Jane pays $100 and the Housing Authority pays $900.

*How Payment Standards Work - How to Get On*

What are the guidelines for HUD?

HUD sets the lower income limits at 80% and very low-income limits at 50% of the median income for the county or metropolitan area in which you choose to live. Income limits vary from area to area so you may be eligible at one HA but not at another.

*HUD's Public Housing Program | HUD.gov / US Department*