Each year, HUD publishes new fair market rents (FMRs) for every housing market area in the United States.
FMRs are based on the number of bedrooms in the rental unit and are intended to align with modestly priced rental housing costs in each area.
LHA’s payment standards are based on the FMRs. Each housing authority is allowed the flexibility to set its housing choice voucher payment standard at an amount between 90 and 110 percent of the FMR for the area. LHA has set its payment standard at 100 percent of the FMR.
LHA’s payment standards for the Housing Choice Voucher (Section 8) program are based on the number of bedrooms in the unit to be rented. The payment standards are then used to calculate the maximum amount of rent subsidy the LHA will pay for units rented through the program. When the LHA raised or lowers its payment standard, the amount of the rent subsidy automatically goes up or down with it.