A flat rent may not be set below 80 percent of the applicable fair market rent without a HUD exception

ph.rent_limit.flat_rent_floor_eighty_percent_of_fmr · v1.0.0

The PHA must establish a flat rent for each public housing unit, determined annually on the market rental value of the unit, that is no less than 80 percent of the applicable Fair Market Rent determined under 24 CFR part 888 subpart A, or no less than 80 percent of an applicable small area fair market rent or unadjusted rent where HUD has determined one that more accurately reflects local market conditions for a geographically smaller market area. Where HUD has determined no applicable small area figure, the PHA must rely on the applicable Fair Market Rent or may apply for an exception flat rent. A lower flat rent may be charged only where the PHA has submitted a market analysis of the applicable market, has demonstrated on that analysis that the proposed rent is reasonable in comparison to rent for other comparable unassisted units given location, quality, size, unit type, age, amenities, housing services, maintenance and utilities, and HUD has approved the request case by case. For units where utilities are tenant-paid, the PHA must adjust the flat rent downward by the amount of the utility allowance for which the family might otherwise be eligible. The PHA must revise the flat rent amount for a unit, if necessary, no later than 90 days after HUD issues new Fair Market Rents. Where a new flat rent would increase a family's rent by more than 35 percent, the increase must be phased in at 35 percent annually until the family chooses income-based rent or is paying the established flat rent.

Confidence

high

Effective from

2023-03-16

Consequence model

agency finding with cure

Last reviewed

2026-08-30