Section 8 covers your rent, not your utilities or other housing costs

Section 8 pays a portion of your monthly rent to your landlord. The program does not pay for electricity, water, gas, internet, renters insurance, or any other expense beyond the lease payment itself. How much of your rent it covers depends on your household income, the size of your family, and the local payment standard in your area.

The way it works: the program calculates a payment standard based on what a two-bedroom, three-bedroom, or four-bedroom unit typically rents for in your county. It then subtracts 30 percent of your adjusted household income. Section 8 pays the difference between that 30 percent and the payment standard, up to the payment standard itself. You pay the rest directly to your landlord.

Payment standards vary significantly by location. A two-bedroom in rural Mississippi may have a payment standard of $600 per month, while a two-bedroom in San Francisco may be $2,500 or higher. Your local housing authority publishes its payment standards every year, usually in the fall.

Key Takeaways

  • Section 8 pays only rent to the landlord; utilities, insurance, and other housing costs are your responsibility.
  • Your portion of rent is always 30 percent of your adjusted household income, regardless of the actual rent amount.
  • Section 8 pays the gap between your 30 percent and the payment standard, but never more than the payment standard itself.
  • Payment standards change yearly and differ by county, so the amount Section 8 covers in your area may be different from a neighboring county.
  • If you find a unit that rents for less than the payment standard, you pay less; if it rents for more, you pay the difference out of pocket.

How your income determines your share of the rent

Section 8 uses adjusted gross income, not your total earnings. The program deducts certain expenses before calculating your 30 percent share. Common deductions include child care costs, medical expenses for elderly or disabled household members, and disability information expenses. Some housing authorities also deduct a utility allowance if you pay your own utilities, though this varies by location.

Once your adjusted income is calculated, the program multiplies it by 0.30 (30 percent). That is your monthly rent contribution. If your adjusted income is $1,500 per month, you pay $450 toward rent. If it is $2,000, you pay $600. Section 8 then pays the landlord the difference between your share and the payment standard, as long as that difference does not exceed the payment standard.

Your income is recertified every year. If your income increases, your rent share increases. If it decreases, your rent share decreases. Some housing authorities recertify more frequently if your circumstances change significantly.

What happens when rent exceeds the payment standard

If you find an apartment that rents for more than your area's payment standard, Section 8 will not cover the extra amount. You must pay it yourself. For example, if the payment standard for a two-bedroom is $1,200 and the unit rents for $1,400, and your income-based share is $300, then Section 8 pays $900 and you pay $500 out of pocket.

This is why many Section 8 holders search for units at or below the payment standard. Some landlords will negotiate rent to match the payment standard if they know a tenant has a voucher. Others will not. You are free to negotiate, but the landlord has no obligation to lower the rent.

A few housing authorities offer payment standard exceptions in tight rental markets, which temporarily raise the payment standard for certain unit sizes or neighborhoods. These are uncommon and usually last one to two years. Ask your housing authority whether exceptions are in place in your area.

Utilities and other costs you pay separately

Section 8 does not pay for water, sewer, trash, electricity, gas, internet, phone, or cable. If your lease says the landlord covers utilities, then the landlord pays them and the rent reflects that. If your lease says you pay utilities, you pay them directly to the utility company.

Some housing authorities include a utility allowance in their income calculation, which lowers your 30 percent share slightly to account for the cost of utilities you pay. The allowance is typically $50 to $150 per month depending on the unit size and your area's climate. Not all housing authorities use utility allowances, and the amount varies widely. Check with your local authority to see whether one applies to you.

Renters insurance, parking fees, pet deposits, and pet rent are also your responsibility. If the lease includes these costs, they are part of what you negotiate with the landlord, and Section 8 does not reimburse them.

How payment standards are set and when they change

Each housing authority sets its own payment standards based on fair market rent data from the U.S. Department of Housing and Urban Development (HUD). HUD surveys rental markets annually and publishes fair market rent estimates for different unit sizes in each county. Housing authorities use these estimates to set their payment standards, though they may adjust them slightly based on local conditions.

Payment standards are usually updated once per year, often in the fall. Some housing authorities increase them to keep pace with rising rents; others hold them steady. A few decrease them in years when rents fall, though this is rare. You should receive notice of any change to the payment standard before it takes effect.

If the payment standard increases, your Section 8 payment may increase (if you are renting below the old standard and the new standard is higher). If it decreases, your payment may decrease only if you are renting above the new standard. If you are already paying at or below the new standard, a decrease does not affect you.

What Section 8 does not cover: a full list

Section 8 covers rent only. It does not cover:

  • Utilities (electricity, gas, water, sewer, trash)
  • Internet, phone, or cable
  • Renters insurance
  • Parking fees or garage rent
  • Pet deposits or pet rent
  • Furniture or appliances
  • Maintenance or repairs (your landlord's responsibility under the lease)
  • Late fees or other lease violations
  • Moving costs or deposits for a new unit
  • Homeowner's insurance or property taxes (if you own)

If you need help paying utilities, some states and counties offer separate utility information programs. Contact your local community action agency or 211 to learn what programs may be available in your area.

How to find out your area's payment standard

Your local housing authority publishes its payment standards on its website or will provide them by phone. Search for "[your county] housing authority payment standards" or call the housing authority directly. You can also ask your case manager if you already have a voucher.

Payment standards are listed by unit size: efficiency, one-bedroom, two-bedroom, three-bedroom, and four-bedroom. Some housing authorities break them down further by neighborhood or zip code. Write down the standard for the unit size you need so you know what Section 8 will cover in your area.

If you are searching for an apartment, use the payment standard as a guide. Units at or below the standard mean Section 8 covers the full difference between your 30 percent share and the rent. Units above the standard mean you pay the overage yourself.

Frequently Asked Questions

Does Section 8 pay for utilities?

No. Section 8 pays rent only. You pay utilities directly to the utility company or to the landlord if the lease says the landlord covers them. Some housing authorities include a small utility allowance in your income calculation, which lowers your rent share slightly, but this is not a separate payment for utilities.

What if my rent is lower than the payment standard?

You pay 30 percent of your adjusted income, and Section 8 pays the rest up to the payment standard. If your rent is $900 and the payment standard is $1,200, and your share is $300, Section 8 pays $600 and you pay $300. You do not get the extra $300 back.

Can I use Section 8 to pay for an apartment that costs more than the payment standard?

Yes, but you pay the difference yourself. If the payment standard is $1,200 and the apartment rents for $1,500, Section 8 pays up to $1,200 minus your 30 percent share, and you pay the remaining amount out of pocket.

Do I have to pay my landlord directly, or does Section 8 send me the money?

Section 8 sends the payment directly to your landlord. You pay your portion of the rent to the landlord as well, usually by check, automatic transfer, or cash. You do not receive the Section 8 payment yourself.

What happens to my Section 8 payment if my income increases?

Your rent share increases. At your annual recertification, if your income has gone up, your 30 percent share goes up and Section 8's payment goes down. If your income decreases, the opposite happens.