How Section 8 rent is calculated
The math is federal and works the same way at every housing authority. What changes from place to place is the payment standard and the utility allowance.
- Start with annual income. The housing authority counts income for everyone in the household under 24 CFR 5.609.
- Subtract the deductions. Under 24 CFR 5.611: $500 for each dependent and $550 for an elderly or disabled family (HUD's 2026 amounts, adjusted every January), medical costs above 10% of annual income for elderly or disabled families, and reasonable child care needed to work or study. The result is your adjusted income.
- Find your total tenant payment. 24 CFR 5.628 sets it at the highest of 30% of monthly adjusted income, 10% of monthly gross income, the part of a welfare grant designated for housing, or the minimum rent (up to $50 for vouchers).
- Compare the apartment to the payment standard. The housing authority pays the lower of the payment standard or the rent plus utilities, minus your total tenant payment (24 CFR 982.505). You pay the rest.
When the rent is above the payment standard
You can choose an apartment that costs more than the payment standard, and you pay the difference on top of your normal share. On a new lease there is a ceiling: your share of rent and utilities cannot be more than 40% of your adjusted monthly income (24 CFR 982.508). The calculator flags an apartment that would fail that test and shows the highest rent that would pass.
What this estimate cannot know
- Your housing authority's actual payment standard. The calculator lets you choose HUD's Fair Market Rent for an estimate, but you must confirm the adopted standard with your authority (24 CFR 982.503).
- The utility allowance, which comes from your housing authority's own schedule.
- Extra deductions your housing authority may have adopted, and which income it excludes.
- Whether the rent is reasonable compared with similar unassisted apartments, which the housing authority must confirm before approving any unit.
Not sure which bedroom size to pick? The voucher size calculator estimates it. To check whether your income qualifies in the first place, use the income limits tool.
Common questions
How much rent do you pay on Section 8?
Most voucher holders pay about 30% of their monthly adjusted income toward rent and utilities. The federal rule sets your total tenant payment at the highest of 30% of monthly adjusted income, 10% of monthly gross income, any welfare payment designated for housing, or the housing authority’s minimum rent. You pay more than that only if the rent plus utilities is above the payment standard.
What is adjusted income?
Adjusted income is your household’s annual income minus the deductions in 24 CFR 5.611: $500 for each dependent and $550 for an elderly or disabled family in 2026, unreimbursed medical costs above 10% of annual income for elderly or disabled families, and reasonable child care needed so a family member can work or go to school.
What is the 40% rule for Section 8?
When you first lease an apartment whose rent plus utilities is above the payment standard, your share cannot be more than 40% of your adjusted monthly income (24 CFR 982.508). If it would be, the housing authority cannot approve the unit unless the landlord lowers the rent. The cap applies at initial occupancy of a unit.
Can I rent an apartment that costs more than the payment standard?
Yes, as long as the housing authority finds the rent reasonable and your share stays at or under 40% of adjusted monthly income at lease-up. You pay your normal share plus every dollar of rent and utilities above the payment standard.
What if I have no income?
You still owe the housing authority’s minimum rent, which it may set anywhere from $0 to $50 a month. A family that cannot pay it because of financial hardship, such as losing a job or waiting on a benefits decision, can ask for a hardship exemption under 24 CFR 5.630.
Is the HUD Fair Market Rent my payment standard?
HUD publishes the Fair Market Rent, while your housing authority adopts its own payment standard. Enter the applicable standard from your voucher paperwork. You can choose to use the HUD benchmark for an estimate, but that does not establish the assistance available to your household.
Sources
- 24 CFR 5.628, Total tenant payment
- 24 CFR 5.611, Adjusted income
- 24 CFR 5.630, Minimum rent
- 24 CFR 982.503, Payment standard areas, schedule and amounts
- 24 CFR 982.505, How to calculate housing assistance payment
- 24 CFR 982.508, Maximum family share at initial occupancy
- 24 CFR 982.515, Family share
- HUD User, annual inflation-adjusted amounts for the deductions
Rules last read against the sources above on October 1, 2026. This tool gives an estimate. Your housing authority makes the actual determination.