How the voucher pays your rent

Three numbers decide how much you pay and how much the PHA pays.

Your share is called the total tenant payment. Under 24 CFR 5.628, it is the highest of 30% of your monthly adjusted income, 10% of your monthly gross income, a welfare rent in some cases, or the PHA's minimum rent. Adjusted income is your income after deductions the rules allow, such as for dependents, child care, and some medical costs for elderly or disabled families.

The payment standard is the most the PHA will pay toward rent and utilities for your voucher size. Each PHA sets its own, usually between 90% and 110% of HUD's Fair Market Rent for the area (24 CFR 982.503). HUD publishes Fair Market Rents every year, generally effective October 1.

The gross rent is the landlord's rent plus any utilities you pay yourself.

The PHA's payment, called the housing assistance payment, is the lower of the payment standard minus your share, or the gross rent minus your share (24 CFR 982.505). The PHA sends that money directly to the landlord, and you pay the landlord the rest.

An example with made-up numbers

Say your adjusted monthly income is $1,500, so 30% is $450, and your PHA's payment standard for your voucher size is $1,600.

• If you rent a unit with a gross rent of $1,500, the PHA pays $1,050 ($1,500 minus $450) and you pay $450.
• If you rent a unit with a gross rent of $1,700, the PHA pays $1,150 ($1,600 minus $450) and you pay $550, because you cover the amount above the payment standard.

There is a cap on that second situation. When you first move into a unit that costs more than the payment standard, your share cannot be more than 40% of your monthly adjusted income (24 CFR 982.508). In the example, 40% of $1,500 is $600, so a $550 share is allowed. The PHA will not approve a unit that would push you over the cap.