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federalUnited StatesSection 811 Project Rental Assistance Programrent_limit

The initial RAC rent level must not exceed the applicable Small Area FMR or FMR unless a market study or HUD approval substantiates it

s811pra.rent_limit.initial_contract_rent_capped_at_the_fair_market_rent · v1.0.0

In no circumstance may the initial Rental Assistance Contract rent level exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent as determined by HUD, unless that rent level is substantiated by a market study prepared in accordance with the requirements of a state housing agency or Chapter 9 of HUD's Section 8 Renewal Guide, or is otherwise approved by HUD. Where the initial rent does exceed the applicable FMR, Exhibit 1 to the contract must identify how the initial rent was determined, as approved by HUD.

This caps the CONTRACT rent, which is what the grantee pays, not the tenant contribution. On a layered credit property the LIHTC gross rent limit is tested separately and against a different number -- see s811pra.rent_limit.lihtc_gross_rent_excludes_the_rental_assistance_payment.
Confidence
high
Effective from
2025-02-01
Last reviewed
2026-08-31

Evidence required

  • Rental market study establishing fair market rent(conditional)
  • Published income and rent limit schedule in effect(one_per_year)

Citations

All sources verified within 1 day
  • Part II of the Rental Assistance Contract, Section 811 Project Rental Assistance (PRA)
    form HUD-92237-PRA (02/2025), section 2.7(a)
    contractSource ↗verified 1d ago
  • Part I of the Rental Assistance Contract, Section 811 Project Rental Assistance (PRA)
    form HUD-92235-PRA (02/2025), Exhibit 1, Schedule of Assisted Units and Contract Rents
    contractSource ↗verified 1d ago