Section 8 covers part of your rent, not all of it

Section 8 pays the difference between 30 percent of your income and the fair market rent for your unit. You pay the 30 percent portion; the program pays the rest, up to a limit set by your local housing authority. The amount varies by household income, unit size, and where you live.

The payment goes directly to your landlord each month. Your landlord cannot charge you more than the agreed rent, and Section 8 will not pay if the rent exceeds the fair market rent limit for your area.

Key Takeaways

  • You always pay 30 percent of your gross monthly income toward rent; Section 8 pays the remainder up to the fair market rent cap.
  • Fair market rent limits are set by the U.S. Department of Housing and Urban Development and differ by county and unit size.
  • If your rent is below the fair market rent limit, Section 8 pays more; if your income rises, your 30 percent share rises and Section 8 pays less.
  • Your landlord receives the Section 8 payment directly, and you pay your portion to the landlord or the housing authority, depending on local rules.
  • The housing authority recalculates your rent share once a year based on your current income, or when your income changes significantly.

How the 30 percent calculation works

Section 8 uses your gross monthly income — the total before taxes — to determine your share. If your household earns $2,000 per month, you pay $600 (30 percent). Section 8 then pays the landlord the difference between $600 and the actual rent, as long as the rent does not exceed the fair market rent limit.

If your rent is $1,200 and the fair market rent limit is $1,200, Section 8 pays $600 and you pay $600. If your rent is $900, Section 8 pays $300 and you pay $600 — you do not get a refund. If your rent is $1,400 but the fair market rent limit is $1,200, your landlord cannot legally charge more than $1,200, so Section 8 would pay $600 and you would pay $600.

Income includes wages, self-employment earnings, Social Security, unemployment benefits, child support, and some other sources. It does not include food stamps, Supplemental Security Income (SSI) for some households, or certain other assistance programs. Your housing authority will tell you which income sources count in your case.

Fair market rent limits and where they come from

The U.S. Department of Housing and Urban Development (HUD) sets fair market rent (FMR) limits for every county in the country. These limits vary by unit size — a one-bedroom has a different limit than a two-bedroom. The limits are meant to reflect what a typical rental costs in your area and are updated each year, usually in October.

Your local housing authority uses these HUD limits to decide the maximum rent Section 8 will cover. If you find a unit that rents for less than the FMR, Section 8 will still pay based on the actual rent (minus your 30 percent), not the full FMR. If a unit rents for more than the FMR, your landlord must accept the FMR amount as the maximum Section 8 will pay, and you would have to cover any overage out of pocket.

FMR limits are public information. You can find your county's limits on the HUD website or ask your local housing authority what the current limits are for each bedroom size.

What happens when your income changes

Your housing authority recalculates your rent share once per year during your annual recertification. If your income goes up, your 30 percent share goes up and Section 8 pays less. If your income goes down, your share goes down and Section 8 pays more. This recalculation is automatic and based on the income information you provide.

If your income changes significantly during the year — you lose a job, start working, or have a major change in benefits — you can report it to your housing authority. Some authorities will adjust your rent mid-year; others will wait for the annual recertification. Ask your housing authority about their interim recertification policy.

Increases in Section 8 payment are not refunded to you. If Section 8 was paying $700 and now pays $800, the extra $100 goes to your landlord. Decreases in your rent share take effect on the date your housing authority sets, usually the first of the month after recertification.

How landlords and housing authorities handle the payment

Section 8 payments are made directly to your landlord by your housing authority, usually by check or electronic transfer. The payment arrives on a set schedule — often the first of the month, though this varies by authority. Your landlord is required to accept the Section 8 payment as payment in full for the portion Section 8 covers.

You pay your 30 percent share to your landlord, or in some cases to your housing authority, which then forwards it to the landlord. Ask your housing authority how they handle tenant payments in your area. Your lease should spell out who you pay and when.

If Section 8 does not arrive on time, you are still responsible for paying your share on the lease due date. If your landlord does not receive the Section 8 payment, they may pursue eviction even though the delay is not your fault. Contact your housing authority immediately if a payment is late, and ask them to contact your landlord to explain the delay.

Rent increases and Section 8 limits

Your landlord can request a rent increase, but Section 8 will only pay up to the fair market rent limit for your area. If your current rent is $1,100 and your landlord wants to raise it to $1,300, but the FMR limit is $1,200, Section 8 will cap its payment at the $1,200 level. You would have to pay the difference out of pocket, or your landlord would have to accept the lower amount.

Most landlords will not raise rent above the FMR limit because Section 8 tenants cannot pay the overage reliably. However, some do, and you would need to decide whether to pay extra or move. Rent increases are usually allowed once per year and must follow your lease and state law.

When the FMR limit increases (which happens most years in October), Section 8 may pay more on your behalf, even if your rent stays the same. This is one reason why Section 8 payments can go up without your income changing.

Special situations: zero-income households and minimum rent

If your household has no income, you still pay something toward rent. Most housing authorities set a minimum rent of $50 to $100 per month, though this varies. Section 8 pays the rest. If your area has no minimum rent requirement, Section 8 may pay the full rent, but this is uncommon.

If you receive a one-time payment — a tax refund, inheritance, or lump-sum settlement — your housing authority may count it as income in the month you receive it, which could raise your rent share temporarily. Ask your housing authority how they treat one-time payments before you receive one.

Frequently Asked Questions

Can Section 8 pay more than the fair market rent limit?

No. Section 8 will never pay more than the HUD fair market rent limit for your area and unit size, even if your landlord charges more. If your rent exceeds the limit, you must pay the overage yourself or negotiate a lower rent with your landlord.

What if I move to a different county?

Fair market rent limits are county-specific. If you move, your housing authority will recalculate your rent share based on the new county's FMR limits. Your Section 8 payment may go up or down depending on whether the new area's limits are higher or lower. You must notify your housing authority before you move.

Does Section 8 pay for utilities?

No. Section 8 covers rent only. If utilities are not included in your rent, you pay them separately. Some housing authorities subtract an allowance from the fair market rent to account for utility costs, which can lower the maximum rent Section 8 will cover, but you still pay utilities out of pocket.

What if my landlord raises the rent above what Section 8 will pay?

You would have to pay the difference yourself, or ask your landlord to lower the rent back to the fair market rent limit. If you cannot afford the overage, you may need to move or contact your housing authority to discuss your options.

How often does Section 8 recalculate what I owe?

Your housing authority recalculates your rent share once per year during your annual recertification appointment. If your income changes significantly during the year, you can report it and ask for an interim recertification, but not all housing authorities will adjust your rent mid-year.