Free tool — Section 8 rent calculator

section 8 rent calculator.
Who pays what, estimated.

A voucher rent is two numbers, not one: the tenant's share and the housing assistance payment the authority sends you. Enter a ZIP, the bedroom count and the tenant's income to estimate both — plus the payment standard the authority subsidizes toward. Need the raw HUD figure instead? Use the Section 8 rent lookup.

the inputs

Gross, before the dependent, elderly, childcare and medical allowances HUD subtracts to reach adjusted income — so the tenant share below reads high.

Housing authorities set the standard between 90% and 110% of the published FMR — some run higher under an approved exception. Ask yours which number it uses; it varies by PHA.

Enter a 5-digit ZIP and load the fair market rent. Add the tenant's monthly income and the tool splits the rent into the tenant's share and the housing assistance payment the authority sends you.

How much can I charge for rent on Section 8?

As much as the unit is worth on the open market — the voucher does not set your price. Two separate tests decide the number, and only one of them is a cap on rent. Rent reasonableness is that cap: the rent you charge cannot exceed what comparable unassisted units nearby rent for, and the housing authority makes that call before it signs the contract. The payment standard is the other number, and it caps the subsidy rather than the rent.

That distinction is where most landlords go wrong. A gross rent above the payment standard is allowed — the family simply pays the difference on top of their own share. HUD limits how far that can go only at the initial lease-up in a unit, where the family's share of gross rent cannot exceed 40% of monthly adjusted income (24 CFR 982.508). On any later lease in the same unit, that 40% test does not apply.

What number should you put on the rent request?

Price the unit off the comparables first, then check it against the payment standard to see how much of it the subsidy would cover and how much would land on the tenant. A rent the family cannot afford is a rent that does not lease, even when the authority would approve it. Payment standards, utility allowances and minimum rents all vary by PHA — confirm every figure with your housing authority before you advertise a price.

the split · 101

How Section 8
calculates rent.

Three rules decide the number on the lease — and only one of them actually caps the rent you can charge.
01

The payment standard.

Your housing authority picks a figure between 90% and 110% of the HUD Fair Market Rent for the voucher bedroom size. It caps the subsidy, not your rent: the family may lease a unit whose gross rent — contract rent plus tenant-paid utilities — runs above the standard and pay the difference themselves. At the initial lease-up their total share cannot exceed 40% of monthly adjusted income; on later leases in the same unit there is no 40% test. Varies by PHA; confirm the current standard with your housing authority.

basisHUD FMR, by bedroom
band90% – 110% of FMR
go deeperPayment standards →
02

The 30% rule.

The tenant pays about 30% of monthly adjusted income toward rent and utilities combined — the greater of that, 10% of gross income, or the authority minimum rent. The assistance payment covers the rest of the gross rent up to the payment standard; anything above the standard is on the family. If the tenant pays some utilities directly, the utility allowance comes out of their share first. Minimum rents, allowances and payment timing vary by PHA.

tenant share~30% adjusted income
the restHAP, up to the standard
go deeperLandlord returns →
03

Rent reasonableness.

Sitting under the payment standard is not approval — and this is the test that actually caps your rent. The authority compares your unit to comparable unassisted rentals nearby and can approve less than you asked for. Budget on the comparable, not on the standard.

testvs. unassisted comps
whenbefore every lease
go deeperRent reasonableness comps →
FAQ

Before you set a price.

The four questions landlords actually type — answered without the fine print.
— What can I charge? —
How much can I charge for rent on Section 8?
Start at the payment standard — 90% to 110% of the HUD Fair Market Rent, set by your authority. It is the subsidy ceiling, not a rent cap: a family can take a unit priced above it and pay the difference — at the first lease-up their total share is capped at 40% of adjusted monthly income, and on later leases in the same unit there is no 40% test. What caps your rent is reasonableness against nearby unassisted rentals. Varies by PHA; confirm with your housing authority.
— The formula —
How does Section 8 calculate rent?
The payment standard sets the subsidy ceiling. The tenant pays the greater of 30% of adjusted monthly income, 10% of gross income, or the minimum rent. The assistance payment is the payment standard (or the gross rent, if lower) minus the tenant payment.
— The maximum —
What is the maximum rent Section 8 will pay?
The payment standard is the most it will pay — never more than the gross rent you actually charge. It is not a cap on the rent itself: a family may lease above it and cover the difference, as long as their total share stays at or under 40% of adjusted monthly income at the initial lease-up; later leases in the same unit carry no 40% test. Two neighbouring counties can land on different figures for the same unit, and some authorities run approved exception standards above the band. Estimate only.
— Tenant portion —
How is the tenant portion calculated?
Roughly 30% of adjusted monthly income, covering rent plus tenant-paid utilities. The utility allowance comes out of the tenant share first; if it exceeds that share, the authority reimburses the tenant the difference. Allowances vary by PHA.
Live · all 50 states

Underwrite the voucher spread.

Verleon AI scores every active listing in our nationwide database and carries the HUD Fair Market Rent alongside it — so you can see how each unit prices against the FMR for its ZIP before you tour a single one.

Try Verleon AI →Browse rents by state
What is fair market rent? →Is Section 8 worth it for landlords? →How to become a Section 8 landlord →Section 8 rent increases →Section 8 inspection guide →Section 8 FMR by state →
Not investment advice. Verleon AI provides analytical tooling for real-estate professionals. Underwriting outputs (DSCR, cap rate, Section 8 FMR estimates, scores) are modeled from public and licensed data and are not a substitute for independent due diligence, legal counsel, lender pre-approval, or licensed appraisal. Past performance is not indicative of future results.