Each Housing Authority sets a Payment Standard, which is the maximum amount the HA will pay toward rent and utilities for a given bedroom size in a given area. Payment standards are based on HUD's Fair Market Rents (FMRs) and are typically set between 90% and 110% of the FMR. If a participant chooses a unit with a gross rent (rent + utilities) at or below the payment standard, they will generally pay no more than 30–40% of their income. If the gross rent exceeds the payment standard, the participant must pay the difference out of pocket, in addition to their income-based share.
Additionally, the HA performs a rent reasonableness determination to ensure the asking rent is not higher than comparable unassisted units in the area. A unit will not be approved if it fails rent reasonableness, even if the gross rent falls within the payment standard. Participants should ask the HA for the current payment standard chart before beginning their housing search.