What Section 8 pays depends on your income and your local rent market

Section 8 does not pay a fixed dollar amount. Instead, the program calculates a payment based on your household income and the fair market rent (FMR) for your area — a figure the U.S. Department of Housing and Urban Development sets each year for every county and zip code. Your voucher covers the difference between 30 percent of your adjusted gross income and the FMR, up to the FMR itself.

This means two households with identical incomes in different counties will receive different voucher amounts, and a household's voucher amount changes when their income changes or when the FMR is updated annually. The payment goes directly to your landlord, not to you.

If your rent is below the FMR, your voucher pays less. If your rent is at or above the FMR, your voucher pays the full FMR amount (minus your 30 percent contribution). You are responsible for any rent above what the voucher covers.

Key Takeaways

  • Your Section 8 payment equals the fair market rent for your area minus 30 percent of your household income, with the voucher capped at the FMR.
  • Fair market rent varies by county and zip code and is updated each year, so your voucher amount can change annually.
  • You pay 30 percent of your adjusted gross income toward rent; Section 8 pays the rest up to the FMR limit.
  • If you find an apartment below the FMR, your voucher pays less, but you can pocket the difference or use it toward utilities.
  • Rent above the FMR is your responsibility unless your local housing authority has approved a higher payment.

How the 30 percent rule works

The program assumes you should spend no more than 30 percent of your adjusted gross income on rent. Your adjusted gross income is your total household income minus certain deductions — typically child support paid out, medical expenses for elderly or disabled household members, and a standard deduction for elderly or disabled heads of household.

If your adjusted gross income is $1,500 per month, you pay $450 toward rent. If the fair market rent in your area is $1,200, Section 8 pays $750 (the difference). If the fair market rent is $900, Section 8 pays $450, and you pay the other $450 yourself.

Your income is recertified annually, and your voucher amount is recalculated at that time. If your income rises, your 30 percent contribution rises and your voucher payment falls. If your income drops, your contribution drops and your voucher payment rises.

Fair market rent and how it affects your payment

The fair market rent (FMR) is set by HUD for each area based on recent rental surveys. It represents the 40th percentile of rents in that market — meaning 40 percent of units rent for less, and 60 percent rent for more. FMR is updated every October and applies to new vouchers and recertifications starting in the following months.

Your local housing authority publishes the current FMR for your area. You can find it on their website or by calling. Knowing the FMR tells you the maximum your voucher will pay, regardless of your income.

When FMR increases, your voucher payment may increase (if you are already at the FMR cap). When FMR decreases, your voucher payment may decrease. Some housing authorities have their own payment standards that differ slightly from HUD's FMR, so check your local authority's rules.

What happens if you find a cheaper apartment

If you find an apartment renting for less than the FMR, your voucher still pays based on the FMR calculation, but you only pay 30 percent of your income. The difference between what the voucher would pay and what the landlord actually charges is called a voucher surplus.

Some housing authorities let you keep the surplus as a rent reduction — you pay less than 30 percent of your income. Others require you to pay the full 30 percent and pocket the difference yourself. A few allow you to use the surplus toward utilities or other housing-related costs. Ask your housing authority which rule applies in your area.

Finding a cheaper apartment is a real way to lower your housing cost, but you still need the landlord to accept Section 8 and to agree to the rent amount.

What happens if rent is above the fair market rent

If you find an apartment that rents for more than the FMR, your voucher still caps out at the FMR amount. You are responsible for paying the difference out of pocket. For example, if the FMR is $1,200 and the apartment rents for $1,400, and your voucher would pay $900, you pay $500 instead of $300.

Some housing authorities allow rent reasonableness exceptions or higher payment standards for specific units or neighborhoods, but this is not automatic. You must request it before signing a lease, and the housing authority must approve both the unit and the higher rent. Most authorities will not approve rent significantly above the FMR.

The practical reality is that you need to find an apartment at or below the FMR to avoid paying extra. This is one reason why Section 8 holders often search in neighborhoods where rents are lower.

How income changes affect your voucher payment

Your voucher is recertified once per year, usually on the anniversary of when you first received it. At recertification, the housing authority verifies your current income and recalculates your 30 percent contribution and your voucher payment.

If your income increases, your voucher payment decreases. If your income decreases, your voucher payment increases. Some housing authorities offer income-based rent increases that phase in gradually rather than all at once, but this varies by authority.

You are required to report certain income changes between recertifications — typically if someone in the household gets a job or loses a job. Failing to report can result in overpayment, which you may have to repay. Ask your housing authority which changes must be reported immediately.

Comparing Section 8 payments across different areas

Section 8 voucher amounts are not comparable across states or counties because FMR varies so widely. A voucher in rural Kansas might pay $600 per month while a voucher in San Francisco might pay $2,000 or more, even for the same household income.

This is why moving with a Section 8 voucher requires planning. If you move to a higher-cost area, your voucher may not cover rent at the same level. If you move to a lower-cost area, your voucher may cover more. Some housing authorities allow portability — using your voucher in a different area — but the new area's FMR applies, and you may need approval from both authorities.

Before moving, contact the housing authority in your destination area and ask what the current FMR is and whether they accept portable vouchers. This tells you whether your voucher will stretch as far in the new location.

Frequently Asked Questions

Can my landlord charge me more than what Section 8 pays?

Yes. If the rent is above the FMR or above what your voucher covers, you pay the difference. Your landlord can charge any amount; Section 8 simply caps what it will pay. You are responsible for the gap.

What if my income goes down — does my voucher payment go up?

Usually yes, but only at your next annual recertification. If your income drops significantly between recertifications, contact your housing authority to ask whether an interim recertification is possible. Some authorities will recalculate sooner if your circumstances change substantially.

Does Section 8 pay for utilities?

No. The voucher pays only toward rent. However, some housing authorities deduct a utility allowance from your 30 percent contribution if utilities are not included in the rent, which effectively lowers what you pay. Ask your housing authority whether this applies to your situation.

What is the maximum Section 8 will pay in my area?

The maximum is the fair market rent (FMR) for your area. Contact your local housing authority or visit their website to find the current FMR for your zip code or neighborhood. It is updated each October.

If I find an apartment below the FMR, do I save money?

It depends on your housing authority's rules. Some let you pay less than 30 percent of your income if the rent is below the FMR. Others require you to pay the full 30 percent regardless. Ask your housing authority which rule applies before you sign a lease.