Payment Standards and Fair Market Rents

The Department of Housing and Urban Development publishes Fair Market Rents (FMR). Housing authorities adopt Payment Standards that must be between 90 and 110 percent of the FMRs. The Payment Standard is the maximum amount that the Housing Authority contributes towards rent and utilities on behalf of the tenant. The Payment Standard is NOT the maximum rent that the Landlord can charge. If the rent and the utility allowance are OVER the Payment Standard, the Tenant is required to pay the difference. When this occurs, the Tenant is actually paying more than 30 percent of their income for rent.