Your rent payment depends on your income, not the market price
Under Section 8, you pay a percentage of your adjusted gross income — typically 30 percent — and the program pays the landlord the difference up to a limit called the payment standard. If your income is very low, you may pay as little as $50 a month. If you earn more, your share rises. The landlord cannot charge you more than the payment standard, even if the market rent is higher.
The exact amount you pay is calculated once a year when your income is verified, though some housing authorities recalculate if your income changes significantly during the year. Your payment can go down if you lose a job or get a raise, it goes up.
Key Takeaways
- You pay 30 percent of your adjusted gross income as rent; Section 8 covers the rest up to the payment standard set by your local housing authority.
- Payment standards vary by location and unit size, so the same income produces different rent amounts in different cities.
- Your annual income verification determines your rent for the next 12 months, and changes during the year may trigger a recalculation.
- If a landlord wants to charge more than the payment standard, Section 8 will not cover it, and you cannot be forced to pay the difference.
How the 30 percent calculation works
The housing authority takes your adjusted gross income — your total household income minus deductions for things like child care, medical expenses, and disability information — and multiplies it by 0.30. That is your monthly rent payment. Everything else up to the payment standard comes from the Section 8 voucher.
Example: If your household's adjusted gross income is $2,000 a month, you pay $600. If the payment standard for a two-bedroom in your area is $1,400, Section 8 pays the landlord $800. If the payment standard is $1,100, Section 8 pays $500 and you still pay $600 — meaning you are paying more than 30 percent because the unit is below the standard.
The deductions that lower your adjusted income include dependent care costs, medical expenses over a certain threshold, disability information, and in some cases foster care payments. Your housing authority will ask for documentation of these expenses during your annual recertification.
Payment standards vary by location and unit size
Each housing authority sets a payment standard for each unit size — one-bedroom, two-bedroom, three-bedroom, and so on. These standards are based on local market rents but are usually lower than what landlords actually charge. A two-bedroom payment standard might be $1,200 in one city and $1,800 in another.
You cannot use your voucher in a unit that rents for more than the payment standard unless you pay the difference yourself out of pocket. Many tenants do this, especially in high-cost areas where market rents exceed the standard. The housing authority publishes its payment standards publicly, usually on its website or in the voucher packet.
Payment standards are adjusted annually, usually in the spring. If the standard goes up, your rent may stay the same (if you are already paying 30 percent of income) or may go down (if you were paying more than 30 percent to fill the gap). If the standard goes down, your rent does not automatically drop — it changes only at your next annual recertification.
When your income changes during the year
Your rent is locked in for 12 months based on the income you report at recertification. If you get a job or a raise, your rent goes up at the next recertification. If you lose income, you can report the change when ready, and the housing authority will recalculate your rent right away — you do not have to wait for the annual date.
Some housing authorities have a policy called interim recertification, which allows you to report income changes at any time. Others require you to wait until your annual recertification. Call your housing authority to ask whether you can report a decrease in income before your anniversary date.
If you fail to report an increase in income and the housing authority discovers it during recertification, you may owe back rent at the higher rate. If you report a decrease that turns out to be temporary — for example, you were laid off but got rehired — the housing authority may ask you to repay the difference when your income goes back up.
Minimum rent and zero-income households
Most housing authorities set a minimum rent, usually between $50 and $75 a month, even if your income is zero or you are receiving only non-countable benefits like Supplemental Security Income (SSI). A few housing authorities have no minimum rent, but this is rare. Check with your housing authority to learn its minimum.
If you are unemployed and have no income, you still pay the minimum. If you receive SSI, it typically does not count as income for Section 8 purposes, so you would pay the minimum rent. If you receive Temporary information for Needy Families (TANF) or other cash information, it usually does count, and your rent is calculated on that amount or the minimum, whichever is higher.
What happens if you cannot afford your share
If your calculated rent is more than you can pay, you have limited options within the Section 8 program itself. You cannot ask the housing authority to lower your rent below 30 percent of income. You can ask the landlord to accept a lower rent, but they are not required to, and doing so may put your voucher at risk if the rent falls below the minimum.
Some tenants in this situation look for a cheaper unit where the market rent is closer to the payment standard, so the 30 percent calculation produces a lower number. Others take on a roommate to share expenses. If you are struggling to pay, contact your housing authority's family self-sufficiency program (if one exists) to explore job training or other support that might increase your income.
Rent increases when the payment standard rises
When your housing authority raises the payment standard — which happens most years — your rent does not automatically increase. Your rent changes only at your annual recertification. At that point, if your income has not changed, your new rent is 30 percent of that same income, which is the same dollar amount as before.
However, if you were paying more than 30 percent because the unit rented below the standard, a rise in the standard might lower your rent. For example, if you were paying $700 on a $2,000 income (35 percent) because the old standard was $1,400, and the standard rises to $1,600, your new rent drops to $600 (30 percent) at recertification.
Frequently Asked Questions
Can my landlord charge me more than the payment standard?
No. Section 8 will not pay more than the payment standard, and you cannot be forced to pay the difference. If a landlord insists on charging above the standard, you can break the lease without penalty and use your voucher elsewhere. Report this to your housing authority.
What counts as income for the 30 percent calculation?
Wages, self-employment income, Social Security, unemployment benefits, child support, and most cash information count. SSI usually does not. Irregular income like bonuses or seasonal work is averaged over 12 months. Your housing authority will tell you which sources count in your case.
If I get a raise, how soon does my rent go up?
Your rent changes at your next annual recertification, which happens on the same date each year. If you report a raise before that date, it does not affect your rent until recertification. Some housing authorities allow you to request an interim recertification if your income drops, but increases usually wait for the annual date.
What if my housing authority's minimum rent is more than 30 percent of my income?
You pay the minimum. If your income is very low, the minimum rent may be higher than 30 percent of what you earn. This is legal, and the housing authority does not adjust it based on individual hardship. Your only recourse is to increase your income or move to a different program.
Do I have to pay my share of the rent to Section 8, or to the landlord?
You pay your share directly to the landlord, the same way any tenant does. Section 8 pays its portion directly to the landlord as well. You never send money to the housing authority for rent.