Tenant-based Section 8 Housing Choice Vouchers, the Project-Based Section 8 program, and Public Housing are the largest and primary rental housing assistance programs for low-income families. This article focuses on how rent is determined for these programs, but there are additional federal and state housing assistance programs. Learn more. 

Topics on this page 

• Determining the Rent Amount
• Housing Assistance Payments to Landlords
• Recertification of Income
• Changes to Income and Household
• Utilities

Determining the Rent Amount 

Rent is subsidized for all three programs, meaning that a tenant will pay less than market-rate for the rent. Most tenants will pay a portion (30%) of their adjusted income. 

• “Gross annual income” generally means the total anticipated income from all sources received by, or on behalf of, the family (including each household member 18 years of age or older). This can include income from work, from benefits, gifts, child support, etc. There are exceptions. For example, if a family member is disabled and has a live-in aide residing with the family, the live-in aide’s income is not counted toward the household to calculate rent. 
• “Adjusted income” means the income of the family (including each household member) less any deductions. Some deductions are mandatory; some deductions are permissive. Examples of mandatory deductions include $400 for a disabled or elderly family member, $480 for each dependent, and certain childcare payments, handicapped assistance expenses, and medical expenses. For public housing, there may be permissive exclusions – these are created by the public housing agency (PHA). However, for the Section 8 Housing Choice Voucher and Project-based Section 8 programs, there are no permissive deductions allowed. 

Read the law: U.S. Code, Title 42 §1437a

Section 8 Housing Choice Voucher – Generally, tenants will pay the highest of: 

• 30% of adjusted monthly income, 
• 10% of monthly (gross) household income, 
• a welfare rent (if applicable), 
• a minimum rent set by the PHA (between $0 and $50). 

The housing assistance subsidy provided to the tenant is based on the tenant’s income and the PHA’s maximum subsidy. However, there may be situations where a tenant pays more than the amount from the list above because landlords can charge a reasonable rent, and it’s possible that the sum of tenant’s contribution and the maximum subsidy is less than the contract rent amount. In that scenario, the tenant would have to pay the difference. 

Read the law: U.S. Code, Title 42 §1437a; §1437f 

Read the regulations: U.S. Code of Federal Regulations Title 24, Part 982

Project-based Section 8 – Generally, tenants will pay the highest of: 

• 30% of adjusted monthly income, 
• 10% of monthly (gross) household income, 
• a welfare rent (if applicable), or 
• a minimum rent of $25. 

For the Section programs, the difference between the tenant’s payment amount and the market-rent amount is paid by the local public housing agency (PHA). If the family chooses a unit with a higher rent than the payment standard established by the PHA, then the family would have to pay the landlord the difference. 

Read the law: U.S. Code, Title 42 §1437a; §1437f

Read the regulations: U.S. Code of Federal Regulation Title 24, Part 983

Public Housing – Generally, tenants will pay the highest of: 

• 30% of adjusted monthly income, 
• 10% of monthly (gross) household income, 
• a welfare rent (if applicable), 
• a minimum rent set by the PHA (between $0 and $50). 

The tenant may have the option of paying a flat rent, which is set by the PHA, based on the unit’s reasonable market value. Policies can vary from area to area, so contact your local PHA for more information. 

Read the law: U.S. Code, Title 42 §1437a

Read the regulations: U.S. Code of Federal Regulations, Title 24, Part 960
 

Housing Assistance Payments to Landlords 

For Section 8 housing, the difference between the tenant’s payment amount and the market-rent amount is paid by the local public housing agency (PHA). The landlord and the PHA have a separate agreement, the housing assistance payment (HAP) contract. If the PHA fails to pay the housing assistance payment to the landlord, it is not a violation of the lease between the tenant and the landlord. During the entire term of the lease, the landlord may not terminate tenancy for nonpayment by the PHA of the housing assistance payment. 

Landlords may not collect any money above the tenant share of the rent as established by the PHA. If the landlord does collect any other charges or fees from the tenant, these must be approved by the HAP contract. 

Read the regulations: U.S. Code of Federal Regulations, Title 24, Part 982, Subpart J 

Recertification of Income 

Every year, the PHA must contact you to make sure that there is no change in the number of people living in your household and your family income. This is called "recertification." Your landlord may do an earlier recertification if your landlord believes that your income or household size has changed. Before recertification, your landlord will send you a letter. If you do not answer the letter, you will receive a second letter. If you still do not answer, there are serious consequences. If you live in Section 8 housing, the housing authority will terminate your Section 8 voucher (you have a right to dispute any attempt by housing authority to terminate your voucher). If you live in public housing, the housing authority will terminate your tenancy and institute eviction proceedings (you have the right to an informal and formal grievance to dispute the housing authority’s decision to terminate your tenancy and institute eviction proceedings). 

Read the law: U.S. Code, Title 42 §1437a, § 1437d; §1437f 

Read the regulations: U.S. Code of Federal Regulations Title 24, Part 960, Subpart C; Title 24, Part 982, Subpart K 

Changes to Income and Household 

Whenever the number of people in your household or their income changes, you must report it right away to your landlord. If you do not, you may be accused of fraud and can lose your housing assistance or even be charged with a crime. You may also have to pay charges for back rent. If you did not report changes in the number of people in your household or their income, but did not do so on purpose, the landlord must let you repay back rent. 

When your income or household size changes, your landlord will adjust your rent.  Generally, if your rent goes down, the change will go into effect the first day of the month after you report the change in your income or household size. If your rent goes up, your landlord must give you 30 days' notice of the increase, and the change will not go into effect until the first day of the month after the 30 days are up. Each housing assistance program has different rules. Read your lease agreement carefully, and contact your local PHA for more information. 

Read the law: U.S. Code, Title 42 §1437a 

Utilities 

Income-based rent contributions are supposed to cover both rent and a reasonable amount for utilities. Thus, once the tenant’s rent amount is determined, a certain amount for utilities is usually deducted if the tenant is responsible for paying the utilities. If tenant’s income is very low, the tenant may qualify for help with utility bills. Contact your landlord, the PHA, or the Maryland Legal Aid Bureau about utility assistance. 

Read the regulations: U.S. Code of Federal Regulations, Title 24, Part 965; Title 24, Part 982, Subpart K