1. What is Section 8 Housing?

Section 8 is a U.S. government program that helps low-income families, the elderly, and disabled afford decent, safe, and sanitary housing in the private market. The program provides rental assistance payments directly to landlords on behalf of participating tenants.

2. How Rent is Calculated

The Section 8 program uses a standard formula to determine tenant and landlord payments:

Where:

• Tenant Rent — The portion the tenant pays (typically 30% of their adjusted monthly income)
• Adjusted Monthly Income — The household's income after allowable deductions
• FMR — Fair Market Rent (HUD-determined maximum payment standard for the area)
• Landlord Payment — The difference between FMR and tenant rent, paid by the housing authority

3. Understanding the Calculations

Key Points:

• Tenants typically pay 30% of their adjusted monthly income toward rent and utilities
• The housing authority pays the difference between this amount and the approved FMR
• Total rent (tenant portion + housing authority payment) cannot exceed the FMR
• If tenant rent exceeds FMR, the tenant would be responsible for the full amount (rare)

4. Using the Calculator

Instructions:

1. Enter the tenant's adjusted monthly income (after all allowable deductions)
2. Enter the Fair Market Rent (FMR) for the specific unit size and area
3. Click "Calculate" to see the tenant portion and housing authority payment

5. Frequently Asked Questions (FAQ)

Q1: What is considered "adjusted monthly income"?
A: This is the household income after certain deductions like child care expenses, medical expenses for elderly/disabled, and other HUD-approved deductions.

Q2: How is Fair Market Rent determined?
A: HUD calculates FMRs annually based on local rental market data for standard quality units of different sizes.

Q3: Can a landlord charge more than FMR?
A: No, the housing authority will only pay up to the FMR amount. The tenant cannot be required to pay the difference.

Q4: What if the tenant's 30% is more than FMR?
A: The tenant would pay their full 30% and receive no housing assistance (very rare as they would likely qualify for a larger unit size).

Q5: Are utilities included in these calculations?
A: Utility allowances are factored separately. This calculator shows gross rent amounts before utility adjustments.