The minimum rent in a project-based Section 8 program is $25, and a claimed financial hardship suspends it from the month after the request

pbra.tenant_payment.minimum_rent_and_hardship_suspension · v1.0.0

Total tenant payment is the highest of four amounts, one of which is the minimum rent. For Section 8 programs other than the moderate rehabilitation and voucher programs the minimum rent is $25; it is not a figure the owner sets. The responsible entity must grant an exemption from payment of minimum rent where the family is unable to pay it because of financial hardship as described in the entity's written policies, and the regulation names five qualifying situations: loss of or awaiting determination on a Federal, State or local assistance program; the family would be evicted because it cannot pay the minimum rent; income has decreased because of changed circumstances including loss of employment; a death in the family; and other circumstances the responsible entity or HUD determines. On a hardship request the owner must suspend the minimum rent beginning the month following the request until it determines whether a qualifying hardship exists and whether it is temporary or long term. If temporary, the minimum rent must not be imposed during the 90-day period beginning the month following the request, and at the end of that period the owner reinstates the minimum rent from the beginning of the suspension and must offer a reasonable repayment agreement. If long term, the family is exempt so long as the hardship continues. The exemption reaches only the minimum rent, not the 30-percent, 10-percent or welfare-housing components of total tenant payment. HUD Handbook 4350.3 paragraph 5-26.D supplies the procedure around that regulation. The owner may ask for reasonable documentation of the hardship and should decide within one week of receiving it. Whichever way the determination goes, the owner MAY NOT EVICT for nonpayment of rent during the time it is deciding, nor during a 90-day temporary suspension, and owner and tenant should reach a reasonable repayment agreement for any arrears. A long-term exemption is implemented by processing an INTERIM RECERTIFICATION, runs from the date the owner granted the suspension, and requires the owner to recertify the tenant every 90 days while it lasts to confirm circumstances have not changed. The owner must keep documentation of every hardship request and determination. The handbook also settles what the $25 covers: it is the tenant's contribution for rent AND utilities, so where the utility allowance exceeds $25 the whole total tenant payment is applied to the allowance and the tenant receives a utility reimbursement of the excess over $25.

Confidence

high

Effective from

2000-03-29

Consequence model

agency finding with cure

Last reviewed

2026-09-02