With a Section 8 Housing Choice Voucher, you’ll typically pay about 30 percent of your monthly adjusted income toward rent. The actual number can land anywhere from $0 to 40 percent of your income, depending on the unit you pick, the deductions you qualify for, and the payment standard your local Public Housing Agency (PHA) has set. The subsidy fills the gap between what you owe and the contract rent, up to a local cap.
How much is rent with Section 8 in your specific case comes down to two things: the income figure the PHA plugs into the federal formula, and how the rent on the unit you choose compares to the PHA’s payment standard.
How Your Rent Share Is Calculated
Your share is called the Total Tenant Payment (TTP). Federal rules set TTP as the highest of four numbers: 30 percent of monthly adjusted income, 10 percent of monthly gross income, a welfare rent amount (if your state designates part of your public assistance for housing), or the minimum rent your PHA has set.1eCFR. 24 CFR 5.628 – Total Tenant Payment For most households, 30 percent of adjusted income is the biggest number, so that becomes the TTP. If your income is very low, the 10-percent-of-gross figure or the minimum rent floor can take over instead.
The word “adjusted” does most of the work. Before multiplying by 30 percent, the PHA subtracts specific deductions from your gross annual income. Smaller adjusted income means smaller rent.
Deductions That Reduce the Income the PHA Counts
Federal rules list four mandatory deductions. Two of them have dollar amounts that adjust for inflation each year. For 2026:
- $500 per dependent. Each household member under 18, a full-time student, or a person with a disability (other than the head of household or spouse) reduces annual income by $500.2HUD User. 2026 HUD Inflation-Adjusted Values
- $550 for elderly or disabled households. If the head, spouse, or sole member is 62 or older or has a disability, the household gets an added $550 deduction.2HUD User. 2026 HUD Inflation-Adjusted Values
- Unreimbursed medical and disability-related expenses. For elderly or disabled families, out-of-pocket medical costs and necessary attendant care or assistive device expenses are deductible to the extent they exceed 10 percent of annual income. The threshold was raised from 3 to 10 percent under the Housing Opportunity Through Modernization Act (HOTMA). Families who were already claiming the deduction at the 3 percent level before January 2024 may qualify for a phased-in hardship exemption.3eCFR. 24 CFR 5.611 – Adjusted Income
- Childcare expenses. Reasonable costs that let a family member work or attend school are fully deductible. If that member stops working or leaves school, the household can request a 90-day hardship exemption to keep the deduction while adjusting.3eCFR. 24 CFR 5.611 – Adjusted Income
These deductions stack. A disabled head of household with two children and significant medical bills can knock thousands off annual income, which translates straight into lower monthly rent. The PHA verifies income and expenses at least once a year, so hold onto receipts and documentation for medical costs, childcare, and disability-related expenses ahead of every review.
How the Unit You Choose Changes Your Rent
Your PHA sets a payment standard: the maximum subsidy it will contribute for a given unit size. That standard is based on HUD’s Fair Market Rent (FMR) for your area, and PHAs can set it anywhere from 90 to 110 percent of the published FMR without HUD approval.4eCFR. 24 CFR 982.503 – Payment Standard Areas, Schedule, and Amounts FMRs are recalculated each fiscal year and vary sharply by market. For FY 2026, the national non-metropolitan FMR is $973.5Federal Register. Fair Market Rents for the Housing Choice Voucher Program
Here’s the rule that matters at the leasing table: if you pick a unit at or below the payment standard, you pay only your TTP. If you pick a unit above the payment standard, you pay the TTP plus every dollar the rent exceeds that standard. A unit $200 over the standard costs you $200 more each month, straight from your budget.
Some metro areas use Small Area Fair Market Rents (SAFMRs), which set payment standards by ZIP code rather than one number across the region.6HUD Exchange. Small Area Fair Market Rents In an SAFMR area, moving to a higher-rent ZIP raises the payment standard along with it, which can open up neighborhoods that would otherwise be out of reach.
Utility Allowances
When your lease makes you responsible for utilities directly, the PHA credits you with a utility allowance. This is a standardized estimate of what utilities cost for that unit type and size, not your actual bill. The allowance reduces the amount of rent you send to the landlord.
If your TTP is smaller than the utility allowance, the direction reverses: the PHA owes you the difference as a utility reimbursement, paid either to you or directly to the utility company.7eCFR. 24 CFR 5.632 – Utility Reimbursements Small reimbursements totaling $45 or less per quarter may be issued quarterly rather than monthly.
The 40 Percent Cap Only Applies at Move-In
When you first sign a lease on a unit that rents above the payment standard, your share cannot exceed 40 percent of your adjusted monthly income.8eCFR. 24 CFR 982.508 – Maximum Family Share at Initial Occupancy “Total rent” here means the contract rent plus estimated utility costs. If the math puts you over 40 percent, the PHA will not approve the lease.
The cap does not follow you after move-in. Once you’re established in the unit, there’s no ongoing 40 percent limit. If the landlord raises rent later or the PHA’s payment standard drops, your share can climb past 40 percent. Watch the payment standard at each annual review, because a shrinking standard combined with rising rent can quietly eat into your budget.
The Minimum Rent Floor
PHAs can set a minimum rent of up to $50 per month.9eCFR. 24 CFR 5.630 – Minimum Rent Even if the 30 percent formula produces $0, you’ll owe at least whatever minimum your PHA has set. Some agencies use $0 or $25; others use the full $50.
If you can’t cover the minimum, ask for a financial hardship exemption. The PHA must grant one for circumstances like job loss, a death in the family, loss of public assistance, or the threat of eviction because you can’t pay.9eCFR. 24 CFR 5.630 – Minimum Rent Once you request it, the PHA suspends the minimum starting the following month while it decides whether the hardship qualifies. Long-term hardships keep the exemption in place as long as the situation continues. If the hardship is temporary, the PHA reinstates the minimum back to the suspension date and offers a repayment agreement.
A Worked Example
Say a single parent with two children earns $24,000 a year in gross wages. For 2026, the calculation looks like this:
- Gross annual income: $24,000
- Dependent deduction: 2 children × $500 = $1,000
- Adjusted annual income: $23,000
- Monthly adjusted income: $1,917
- 30% of monthly adjusted income: $575
- 10% of monthly gross income: $200
- TTP (the highest applicable amount): $575
Assume the PHA’s two-bedroom payment standard is $1,500. If the family rents a unit at $1,400, the family pays $575 and the PHA pays the landlord $825. If the family rents a unit at $1,600 instead, the PHA subsidy is capped at $925 ($1,500 payment standard minus the $575 TTP), and the family pays $675: the $575 TTP plus the $100 the rent exceeds the standard. That $675 is roughly 35 percent of monthly adjusted income, which clears the 40 percent initial lease-up cap.
Add a utility allowance of $150 for tenant-paid electric and gas, and the PHA folds that into the subsidy calculation, lowering what the family owes the landlord and freeing cash for the utility bills.
Reporting Income Changes Between Reviews
The PHA re-verifies your income at least once a year, but don’t wait for the annual review if something changes. If you lose a job or your hours drop, reporting the change promptly can trigger an interim reexamination and a rent reduction effective the first of the month after the change. Delay past your PHA’s reporting deadline and the reduction may not apply until after the reexamination is finished, wiping out the retroactive benefit.
Increases go the other direction. The PHA must conduct an interim reexamination when it learns your adjusted income has risen by 10 percent or more. Rent increases from interim reviews take effect after a 30-day notice period. If you don’t report an increase and the PHA finds out later, the higher rent can be applied back to the month after the change actually happened, and you’ll owe the difference. Timely reporting is the cheapest way to avoid a surprise bill.