Section 8 / HCV Calculator

Last updated: May 2026

Estimate Housing Choice Voucher (HCV) payments — what the tenant pays vs. what the housing authority pays.

Property & Voucher Details

$
$
$
%
$

Results

HAP Payment (Housing Auth.)
paid directly to you
Tenant Portion
tenant pays you
Your Total Rent
HAP + tenant
Payment Standard
max PHA will pay
⚠️

Payment Standard: Each Public Housing Authority (PHA) sets a payment standard, typically 90–110% of HUD's Fair Market Rent (FMR). This is the maximum the PHA will contribute. Find your local FMR at hud.gov/program_offices/comm_planning/affordablehousing/programs/hcv/fmr.

Tenant Portion: Tenants pay 30% of their adjusted gross income toward rent. If the asking rent exceeds the payment standard, the tenant pays the difference (up to 40% of income at initial lease).

HAP Payment: Housing Assistance Payment = Asking Rent − Tenant Portion. The PHA pays this directly to the landlord.

Landlord benefits: Guaranteed government payment, lower vacancy risk, stable income. Units must pass HQS inspection and rent must be at or near market rate for the area.

⚠️ HCV rules, FMRs, and payment standards vary by location and change annually. This is an estimate only. Contact your local PHA for exact figures. Fair Market Rents are published by HUD at hud.gov.

Section 8 / Housing Choice Vouchers: How the Program Works for Landlords

The Housing Choice Voucher program — commonly called Section 8 — is a federal rental assistance program administered by local Public Housing Authorities (PHAs). Eligible low-income tenants receive a voucher that covers the gap between 30% of their monthly income and the HUD-established "payment standard" for their area. The landlord receives the tenant's portion directly from the tenant and the Housing Assistance Payment (HAP) directly from the PHA — typically on the 1st of the month, guaranteed. This government-backed payment stream is one of the program's most attractive features for landlords: even if a tenant falls on hard times, the PHA portion keeps flowing.

For landlords, participation requires agreeing to HUD's Rent Reasonableness standard (rent must be within range of comparable unassisted units), passing an initial Housing Quality Standards inspection, and maintaining the property to HQS on an ongoing basis. In exchange, landlords get a reliable, partially government-funded rent stream, access to a large pool of long-term tenants (voucher holders move infrequently), and in many jurisdictions, source-of-income protection laws that prevent discrimination against voucher users. The program's biggest administrative burden is the inspection process — failed items must be corrected before payments begin.

Unit SizeHUD Payment StandardTenant Portion (~30% income)Landlord Receives
Studio$1,050/mo~$150~$900
1 Bedroom$1,200/mo~$175~$1,025
2 Bedroom$1,450/mo~$210~$1,240
3 Bedroom$1,850/mo~$265~$1,585
4 Bedroom$2,100/mo~$300~$1,800

Note: Payment standards are HUD 2024 national medians. Actual amounts vary significantly by metropolitan area — high-cost cities can be 2–3× these figures.

Worked Examples

Example 1 — 2BR Unit in a Mid-Cost City
A landlord lists a 2-bedroom unit in a mid-cost metro. The local Fair Market Rent (FMR) is $1,350/month. The Section 8 tenant earns $18,000/year → 30% of income = $450/month as the tenant's share → the Housing Authority pays the remaining $900/month directly to the landlord. Total monthly rent received: $1,350 — identical to market rate. The landlord gets the same rent, but $900 of it is a government-guaranteed payment that arrives regardless of the tenant's financial situation in any given month.
Example 2 — Landlord with 3 Section 8 Units
A small landlord owns a triplex with all three units rented to Section 8 voucher holders at $1,200/month each. Monthly government HAP payments: $2,700. Tenant contributions: $900. Total monthly rent: $3,600 — all arriving predictably on the 1st. Vacancy risk on the HAP portion is near zero as long as the units pass inspection and the tenancy remains in good standing. With a $900,000 acquisition cost and $3,600/month gross rent, the gross rent multiplier is 20.8× — acceptable in a high-quality guaranteed-income scenario.

Frequently Asked Questions

How does Section 8 work for landlords?

Landlords agree to rent to a voucher-holding tenant at an approved rent level. The tenant pays roughly 30% of their income directly to the landlord; the PHA pays the balance (the HAP) directly to the landlord each month. The landlord must pass an initial inspection and maintain HQS standards. Annual or biennial inspections follow. The key benefit is the government-guaranteed portion of rent, which reduces default risk.

Is Section 8 income guaranteed?

The HAP portion paid by the PHA is highly reliable — as long as the unit passes inspection and the tenant's tenancy is in good standing, the government payment continues. The tenant's share (30% of income) carries normal collection risk. If a tenant fails to pay their portion, landlords can pursue eviction under normal landlord-tenant law. HAP payments do not stop due to tenant non-payment alone.

What inspections are required for Section 8?

HUD requires an initial Housing Quality Standards (HQS) inspection before a new voucher tenancy begins. The inspector checks safety items: working smoke detectors, secure windows and doors, functional heating and plumbing, absence of lead-based paint hazards (for pre-1978 buildings), and general structural safety. Many PHAs also conduct annual or biennial re-inspections. Failed items must be corrected within 24 hours (for emergencies) or 30 days (for non-emergencies) or HAP payments are suspended.

Can a landlord refuse Section 8 tenants?

In states and cities with source-of-income (SOI) protection laws — including California, New York, New Jersey, and many others — landlords cannot refuse to rent solely because a tenant uses a Housing Choice Voucher. In states without SOI protections, landlords may legally decline to participate in the Section 8 program. However, refusing based on the voucher while accepting market tenants may still violate fair housing laws if it has a discriminatory disparate impact.

How are payment standards set?

HUD establishes Fair Market Rents (FMRs) annually for each metropolitan area and rural county using American Community Survey data. Local PHAs set their payment standards between 90% and 110% of FMR (or up to 120% with HUD approval for high-cost areas). Payment standards are updated yearly, so landlords can request rent increases at lease renewal as long as the new rent is within the updated payment standard and passes the Rent Reasonableness test.