#housing for rent
U.S. Department of Housing and Urban Development (HUD) requires that HCV Program rents be “reasonable.” IHA monitors the rental market and establishes average gross rents for each sub-market within Marion County.
- Each housing unit proposed for contract is rated by an HCV Program inspector relative to its location. The HUD defined “Fair Market Rent” (FMR) determines maximum subsidy, but not reasonable rent.
- Reasonable gross rent less allowances for tenant-paid utilities equals reasonable rent.
- The Housing Assistance Payment (HAP) is the difference between the contract rent and tenant s share of rent (Tenant Rent).
- The tenant may not pay more than 40% of his/her adjusted income toward the rent in the initial year of the contract. The maximum housing assistance is paid on behalf of a tenant. The payment standard is the beginning amount used for calculating the housing assistance payment. The maximum housing assistance that eligible families can receive under the program is the difference between 30% of the net household income and the current payment standard.
Example: For a 2-bedroom voucher holder with an adjusted monthly income of $250, a subsidy would equal $550.00.