Section 8 Rent Increase Calculator

• Lease and HAP contract first. Rent changes follow the lease and the HAP contract, and under the HUD Tenancy Addendum the rent can't be raised during the initial lease term.
• PHA approval. The PHA must find the new rent reasonable before approving an increase (24 CFR § 982.507).
• Payment standard caps the subsidy. The PHA pays based on the lower of the payment standard or the unit's gross rent, so the tenant covers any amount above it (24 CFR § 982.505).

How do I get a rent increase approved for a Section 8 tenant?

Rent changes are governed by your lease and the HAP contract, and the PHA must approve the new rent before the higher amount takes effect for the subsidy. Under the HUD Tenancy Addendum, the rent can't be raised during the initial lease term. After that, give the tenant notice as your lease and state law require, and submit your PHA's rent increase request in writing. PHAs set their own forms and lead times (some ask for 60 days or more), so check your PHA's procedure before you send the tenant a notice.

Does the PHA check rent reasonableness for a rent increase?

Yes. Under 24 CFR 982.507, the PHA must determine that the rent to owner is reasonable before any increase in the rent to owner is approved. It compares your unit to unassisted units of similar location, quality, size, and amenities, and it may not approve rent higher than what comparable unassisted units rent for. A PHA must also re-check reasonableness if HUD's published FMR decreases by 10% compared with the prior year, measured 60 days before the contract anniversary.

Is there a maximum percentage the rent can go up each year?

Federal voucher rules don't set a fixed annual percentage cap. The practical limits are the rent reasonableness test, your lease terms, and any state or local rent-regulation law that applies to your property. Because no HUD percentage threshold exists, the calculator above only compares your numbers to the payment standard you enter; it can't predict a PHA's decision.

What happens if the new rent is above the payment standard?

The PHA's subsidy is based on the lower of the payment standard or the unit's gross rent (rent plus any tenant-paid utility allowance), so the tenant pays the amount above the payment standard on top of their income-based share. At the start of a tenancy, the family's share can't exceed 40% of adjusted monthly income (24 CFR 982.508), which can limit how high a new lease-up rent can go. The rent must still pass rent reasonableness.

When does a change in the payment standard affect the tenant's rent?

If your PHA raises its payment standard, the higher amount generally applies at the family's first regular recertification after the effective date. If the PHA lowers it, the lower amount generally doesn't apply until the second regular recertification after the effective date (24 CFR 982.505). PHAs may also choose to apply an increase earlier, so check your administrative plan.