A security deposit must be collected at initial lease execution in seven named programs, in the amount Figure 6-7 sets for that program

mfh.fees_and_charges.security_deposit_collection_and_amount · v1.0.0

The owner must collect a security deposit at the time of initial lease execution for Section 8 New Construction with an AHAP executed on or after 5 November 1979, Section 8 Substantial Rehabilitation with an AHAP executed on or after 20 February 1980, Section 8 State Agency with an AHAP executed on or after 29 February 1980, Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC. For those programs the amount is the greater of one month's total tenant payment or $50; for Section 236 and Section 221(d)(3) BMIR it is one month's tenant rent; for RHS 515 with Section 8 it equals one month's total tenant payment; for Section 8 LMSA it may be no greater than one month's total tenant payment. The amount established at move-in does not change when the tenant's rent later changes. The deposit is refundable, may be collected on an installment basis, and is expected to come from the tenant's own resources or other public or private sources; an applicant may be rejected for not having the funds to pay it. A deposit that met the HUD rules in force when it was collected need not be adjusted to current rules, and the Field Office or Contract Administrator may not reduce Section 8 special claims because it does not meet them.

Confidence

high

Effective from

2013-11-27

Last reviewed

2026-09-01