Most families with Section 8 pay 30% of their monthly adjusted income as the tenant portion of the rent. Section 8 pays the difference between this amount and the payment standard set by the housing agency. Some housing agencies set a minimum rent for very low income families.

Families pay this amount if they choose housing where the total rent (rent plus utilities) is less than or equal to the payment standard set by the housing agency.
Some families pay up to 40% of their monthly adjusted income as the tenant portion of the rent.

Families pay this amount if they choose housing where the total rent (rent plus utilities) is greater than the payment standard set by the housing agency. Families are not allowed to pay more than 40% of their adjusted income when they first get a voucher or whenever they move to a new unit.

What are "fair market rents?"

Each year, the federal government looks at the rents being charged for privately owned apartments in different communities, and the costs of utilities (heat, electricity, etc.) in those communities. The "fair market rents" are an estimate of the average gross rents (rents plus utilities) for medium-quality apartments of different sizes in a particular community.

The current fair market rents for Boston, Worcester, and Springfield are shown below:

Fair Market Rents
Effective October 1, 2009
Number of bedrooms	Boston	Worcester	Springfield
0	$1090	$708	$610
1	$1156	$814	$726
2	$1357	$991	$922
3	$1623	$1185	$1104
4	$1783	$1257	$1281

For the fair market rents in other Massachusetts communities, see FY 2010 Fair Market Rents (requires Adobe Reader) on the HUD web site.

What is the "payment standard?"

The "payment standard" is the maximum monthly rent assistance that the government will pay to a landlord who rents to a family with a Section 8 voucher. The payment standard depends on the apartment size and the area where the rental unit is located.

The payment standard is often the same as the fair market rent (see Fair Market Rents above), but can be slightly higher or slightly lower. Check with your housing agency to see which payment standard they use.

A family with a Section 8 voucher must try to find an apartment whose rent, including utilities, is not higher than the payment standard. If the rent is higher, the family must pay the extra. If the rent is much higher than the payment standard, the housing agency will not approve the apartment.

How is adjusted income calculated for Section 8?

Most households pay 30% of their adjusted (net) income for Section 8 housing.

Adjusted (net) income is your household’s gross (total) income minus the following deductions:

$480 for each dependent. A dependent is a member of the family (other than the head of household or spouse) who is under 18 years of age, or a full-time student, or a person with a disability. You may not take this deduction for foster children.
Child care expenses for children under age 13 when the child care is needed so a family member can work, look for work, or attend school. If the child care allows a family member to work, the child care expenses cannot be greater than the working person's income.
$400 per household if the head of household or spouse is elderly or has a disability.
Certain disability assistance and medical expenses that are greater than 3% of the gross annual household income.

Example rent calculation for Section 8:

As an example, if:

you and your spouse are not elderly and do not have disabilities
you have three dependent children
your gross annual income is $21,500
and you pay $2000 for child care so that you can work

then your deductions are:

$480 dependent deduction x 3 = $1440
$2000 child care deduction
total deductions = $3440

Your net annual income equals your gross annual income minus your deductions:

$21,500 - $3440 = $18,060.

Your net monthly income equals your net annual income divided by 12:

$18,060 / 12 = $1505

30% (.3) of your net monthly income equals:

$1505 x .3 = $451.50

You will pay $451.50 per month if you choose housing with a total rent (rent plus utilities) less than or equal to the payment standard. See What is the "payment standard?" Section 8 will pay the rest.

If you choose housing with a total rent greater than the payment standard, you will have to pay 30% of your monthly adjusted income PLUS the difference between the payment standard and the actual rent.

The total rent that you pay cannot be greater than 40% of your adjusted income if you are entering the Section 8 program for the first time or moving to a new unit.

What rent will I pay with an MRVP voucher?

Each household with an MRVP voucher must pay at least 30% of its net income plus $50 for rent. This is the household's minimum share of rent. The MRVP pays the difference between this amount and the rent charged by the landlord, up to the voucher maximum value. The voucher maximum value is set by the DHCD and depends on the household's income, household size, and the geographic area where the household plans to live.

If the rent charged by the landlord is greater than the household’s minimum share of rent and the voucher value combined, then the household must pay the difference. There is no limit on the amount a household may choose to pay for rent. Many families with MRVP vouchers pay 40% or more of their income for rent and utilities.

How is net income calculated for MRVP vouchers?

Net income means gross income minus the following deductions:

Standard deduction of 5% of gross income if the head of the household or spouse is at least 60 years of age; or if the head of household, spouse, or a household member has a disability.
Expenses for child care or care of sick or incapacitated family members where necessary for the employment of the head of household or spouse.
Medical expenses (not covered by insurance) exceeding 3% of the gross annual household income.
Amount paid for support of a minor child, spouse, or ex-spouse, not living with the household, when approved or ordered by the court.
Housekeeping, personal care, and travel expenses for a disabled household member, if no one in the household is able to perform these services.
Tuition and fees for post-secondary job-related education for a household member who is not a full-time student.

What rent will I pay with an AHVP voucher?

With an AHVP voucher, your share of rent will be 25% of your net household income if you pay one or more utilities separately, and 30% of your net household income if all utilities are included in your rent. The total rent charged by the landlord cannot be greater than the maximum rents ("ceiling rents") allowed under the program.

Ceiling rents currently equal the Section 8 payment standards (see above).

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