A late charge needs a five-day grace period and is capped at $5 for the first five days plus $1 a day, and no tenant may be evicted for failing to pay one

mfh.fees_and_charges.late_payment_charges_grace_period_and_ceilings · v1.0.0

An owner may assess a late charge only if the tenant has been given at least five calendar days as a grace period to pay the rent, and the rent must be received by the fifth day, not merely postmarked by then. On the sixth day the owner may charge a fee not exceeding $5 for the first through fifth day the rent went unpaid, plus $1 per day for each additional day it remains unpaid that month. A Field Office or Contract Administrator may approve a higher initial late fee where state and local law permit it, it is consistent with local management practices, and the total late charge assessed for the month does not exceed $30. Accrued unpaid late charges may be deducted from the security deposit at move-out where state and local law permit. An owner must not evict a tenant for failure to pay late charges. This paragraph does not apply to cooperatives, and owners of Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC projects cannot charge late fees at all.

Confidence

high

Effective from

2013-11-27

Last reviewed

2026-09-01