Subsidy and Payment Standards - HPD

Housing Preservation & Development


Section 8 / Rental Subsidy Programs

Subsidy and Payment Standards


Subsidy and Payment Standards

Subsidy Standard

The Subsidy Standard refers to the maximum number of bedrooms the New York City Department of Housing Preservation and Development (HPD) will subsidize. Subsidy Standards are based solely on the number of people residing in the assisted household. HPD will allot one bedroom/sleeping area per two people. HPD does not determine who shares a bedroom/sleeping room. If you rent an apartment with fewer bedrooms than what is listed on your voucher, your Payment Standard will match the number of bedrooms in the unit, not the voucher.

On January 1 2023, HPD updated its subsidy standards/voucher size. Section 8 Applicants who are searching for apartments received an Updated Voucher Notice indicating that their voucher size (number of bedrooms) has been increased due to HPD’s policy change, and which lists the revised voucher size based on family size. These letters serve as confirmation that HPD will honor the updated voucher size.

HPD will allot one bedroom per person, with the exception of married or partnered adults, who will be allocated one shared bedroom. If you rent an apartment with fewer bedrooms than what is listed on your voucher, your Payment Standard will match the number of bedrooms in the unit, not the voucher.

HPD’s Subsidy Standards

# of Household Members
When no household members are partnered
When any two household members are partnered

1

2
1

3
2

4
3

5
4

6
5

7
6

Payment Standard

The Payment Standard refers to the maximum amount of subsidy HPD will pay for an apartment of the same size. You may lease an apartment with a rent higher than the Payment Standard, but you must pay the difference and your total tenant share cannot exceed 40% of your income. HPD will not approve your subsidy in a unit where the landlord is a parent, child, grandparent, grandchild, sister or brother of any member of the assisted household. HPD may waive this restriction as a reasonable accommodation for a family member with a documented disability. To determine your Payment Standard, search by zip code using the dropdown menu below or by address using the map below.

HPD also uses Exception Payment Standards (EPS). EPS is set at the zip code level and allows for subsidy levels that more closely match the local market. EPS is intended to expand housing opportunities in zip codes that have lower rates of poverty and crime and have well-resourced schools. These areas are highlighted in the map below. Please note that EPS applies only to Section 8 voucher holders

HPD launched a pilot program, Housing Choice: HPD's Mobility Counseling Program, in July 2018, to help HPD Section 8 voucher holders access greater housing options in these higher opportunity areas. Learn more about Housing Choice.

The Payment Standards below are effective January 1, 2024. Download the Payment Standard and Exception Payment Standard values for all zip codes.

ZIP Code

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Payment Standard Lookup Tool

Utility Allowances

The Utility Allowances in the table below are effective January 1, 2024. Utilities paid by the tenant must be subtracted from the Payment or Exception Payment Standard.

Bedrooms
Gas
Electric
Gas Heat and Hot Water
Oil Head and Hot Water
Electric Heat and Hot Water
Heat Pump Heat and Hot Water
Water and Sewage

SRO
$25
$74
$85
$151
$80
$40
$68

Studio
$25
$74
$85
$151
$80
$40
$68

1
$28
$84
$100
$178
$115
$55
$72

2
$33
$109
$123
$216
$200
$94
$100

3
$37
$134
$142
$253
$285
$131
$142

4
$42
$160
$163
$292
$335
$154
$184

5+
$46
$186
$185
$329
$385
$176
$225

Section 8 Rents

Rent Reasonableness

The New York City Department of Housing Preservation and Development (HPD) is obligated by the US Department of Housing and Urban development (HUD) to determine that rents for subsidized apartments do not exceed rents for comparable unsubsidized apartments in the building or neighborhood. This "rent reasonableness" test is performed prior to approving subsidy and at any subsequent request for a rent increase. The owner may supply HPD with information on comparable apartments using the HPD Rent Comparable Form.

Rent Increases

Owners may apply to HPD for an increase in the contract rent once annually. Request must be submitted to HPD 60 days in advance of the effective date of the increase. Requests received by HPD after the effective date, if approved, will be made effective the 1st or 15th of the month that is 60 days after the date that HPD received the request. The owner’s proposed rent must be confirmed to be in accordance with any federal, state or local housing laws and regulations that apply to that particular building and/or apartment. To demonstrate this compliance, owners are encouraged to supply supporting documentation with their request. Owners should complete and return a Rent Increase-Decrease Request Form.

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Requesting Contract Rent Changes

Owners may request changes in the rent that they receive for an assisted unit at the end of the initial HAP contract. This most often is connected to the lease renewal.

To request a lease renewal or rent change, owners must submit a Rent Increase/Decrease request form, the signed renewal lease, and any supporting documentation to HPD at least 60 days in advance of the proposed effective date of the change. HPD does not notify owners of upcoming lease expirations or automatically process lease renewals or rent increases, even if the rent change was approved by another part of HPD. It is solely the owner’s responsibility to request a rent change or lease renewal. Please remember that all Contract Rent requests must be in accordance with the terms of the currently existing lease agreement and the HUD Tenancy Addendum (HUD form 52641-A). When HPD receives a Contract Rent request, any Proposed Rent amount will be subject to a Rent Reasonableness review. Additionally, approvals of all reasonable Rent Increases are contingent upon the availability of funds. More general guidance for requesting rent changes for units receiving HPD administered rent subsidies may be found in the DTR Owner FAQ .

Units subject to the Rent Stabilization Law

Many housing units receiving rent subsidies are also subject to rent stabilization rules. Rent subsidy rules require that we comply with local rent regulations when determining the appropriate contract rent for an assisted unit. Meeting the requirements of both local rent regulation and the housing subsidy program can be a challenge, the following is guidance for specific situations.

Guidance for the submission of rent modification requests for two-year leases for existing tenants subject to New York City Rent Guidelines Board 2023-24 Apartment & Loft Order # 55:

The NYC Rent Guidelines Board RGB issued an order for two-year lease renewals that includes multiple phases of rent increases within the lease term. The lease renewal form for tenancies subject to Order #55 is available from the New York State Department of Homes and Community Renewal (DHCR): Lease Renewal Form

Owners are responsible for requesting a modification of the contract rent for each year during the two-year lease term. Requests should be made 60 days prior to the effective date of the requested change. Requests should be made via the DTR Portal, the Rent Increase/Decrease Request form and. supporting documents uploaded.

Owners may submit separate rent change requests for each year of the renewal lease period at the same time, by creating two requests, one for each year period of the lease.

However, the rent change request for the second year must include the start date of the second year of the lease period, rather than the start date of the lease. The same lease should be uploaded in support of each modification request.

Initial Lease up for Voucher Holders in Rent Stabilized Units (Rent Order #55)

When an applicant is leasing a rent-stabilized unit with their rental subsidy where either they have an existing two-year lease agreement subject to Order #55 or they elect to enter into a two-year lease under this order, the proposed contract rent on the Request for Tenancy Approval (RFTA) form must reflect the legal rent for the current period (1st or 2nd year) of the lease agreement. The executed two-year lease agreement must be submitted to HPD along with the signed HPD HAP contract.

NY Private Housing Finance Law (PHFL) Section 610 for Rent Stabilized Units

In 2022 the NY Private Housing Finance Law (PHFL) was amended to add Section 610. This amendment allows owners of affordable housing properties subject to rent stabilization laws to collect the full rental subsidy amount for rent-assisted units, even if it is above the legal rent under the Rent Stabilization Law, without affecting the amount the tenant has to pay. The properties must have a Regulatory Agreement with a local government entity (including, but not exclusively HPD) that specifically permits the owner to access this provision of law, to receive rents that exceed the legal rent for units with rental assistance.

Guidance for Section 610 rent increase requests in excess of the legal rent

Owners submitting requests under the provisions of Section 610, must complete a Rent Increase/Decrease Request form, supply the Section 610 exhibit from the Regulatory Agreement and supply an executed renewal lease that includes the DHCR published Section 610 lease rider, confirming the tenant has been notified of their rights under this law. The addition of this rider to the lease agreement and the collection of a higher rent will only be approved at a lease renewal following the execution of an applicable regulatory agreement or amendment. This rider and rent change may not be applied during an existing lease term.

Requests should be uploaded to the DTR Portal 60 days prior to the proposed effective date of the rent increase request. HPD will review the request to determine that the proposed rent is reasonable. Rents that are not reasonable, may not be approved by HPD. Please note that while requests may seek a rent increase that exceeds the legal rent under the Rent Stabilization Law, the proposed rent may not exceed the payment standard under the rent subsidy program minus any tenant-paid utility allowance.

Enhanced Section 8 Tenant Protection Vouchers Rent Determinations

Developments with tenants assisted with Section 8 tenant protection vouchers, referred to as Enhanced Section 8, have rents determined on an annual schedule. These vouchers are not subject to the voucher payment standards and instead, the contract rents are based on market comparables, which are most often unassisted units in the same development.

The owner is required to supply the following documents to the Division of Tenant Resources 90 days before the building anniversary date:

HPD rent roll

Preferential Rent Report

If you need these Excel templates or to submit your request, please send an email message to enhanceds8owner@hpd.nyc.gov.

HPD reviews the information submitted on the rent roll and selects comparables from similar unassisted units within the development for each assisted unit model type. A list of these comparables will be provided to the owner/property management for review and comments. HPD will consider the owner’s feedback in the final comparable selection.

HPD provides the owner with written notice of the approved rents for all assisted units as well as vacant units, instructions and deadlines for lease submissions. Each lease must be submitted by uploading it to the DTR Portal

Both owner and tenant receive written notification of the approved contract rent and the approved effective date via an updated Rent Breakdown letter.

Project Based Voucher (PBV) Rent Increase Requests

Contract rents for units with Section 8 PBV assistance may only be changed at the contract anniversary. To request a change in contract rents, the owner must submit a written request for the proposed rents with an updated HPD rent roll and any supporting documentation.

Requests for rent increases should be sent via email to PBV@hpd.nyc.gov 60 days in advance of the PBV HAP contract anniversary date. If the rent increase request is not made during this annual period, it may not be considered until the next contract anniversary. PBV contract rents may not exceed 110% of the Fair Market Rent (FMR), or if applicable, the Exception Payment Standard (EPS), or any other applicable rent restrictions.

HPD determines if the owner’s proposed rent is reasonable and issues written notice of the approved rents for all units on the contract and instructions for submitting renewal leases to HPD, including the deadline for lease submissions. All leases must be uploaded to the DTR Portal for processing.

Rent increases will not be implemented until the signed lease is submitted. HPD will process each submitted request resulting in an updated Rent Breakdown letter sent to the owner and the tenant.

NYC 15/15

HPD administers project-based rental subsidies in developments providing permanent supportive housing through the NYC 15/15 program. Contract rents are limited to the lowest of the NYC 15/15 maximum contract rent (based on the FY Rent Schedule)the reasonable rent or the legal registered rent.

Contract rent increases may be requested as leases renew by uploading a renewal lease to the DTR Portal account in the Request tab and not Document Upload. You should also include a Rent Increase/Decrease Request Form with your submission. Completed rent increase requests should be submitted 60 days prior to lease expiration, late submissions will result in a prospective effective date.

Continuum of Care (CoC)

HPD administers Continuum of Care-project-based rental assistance in these permanent supportive housing units. HPD will determine the maximum contract rents for units with CoC Shelter Plus Care (SPC) assistance annually. Those determinations include a rent reasonableness analysis and where applicable, unit rents may not exceed the legal rent stabilized rent.

After this rent determination is made, following the HUD NOFA award announcement, subrecipients (sponsors) must then submit individual rent increases request for each CoC SPC unit as the lease renews. All requests must be uploaded to the DTR Portal for review and processing.

CoC Mod SRO:

Rent increases for CoC-Mod SRO contracts are limited by the lesser of the applicable Operating Cost Adjustment Factor (OCAF) published annually by HUD or their budget-based rent.

Requests for a rent increase for CoC Mod SRO HAP contracts will be made and reviewed during the annual CoC Mod SRO HAP contract renewal process. The submission of an executed renewal of HAP Contract listing the new contract rent by a CoC Mod SRO project owner constitutes a request for a rent increase.

Once a contract-wide rent increase has been approved through the CoC Mod SRO HAP contract renewal execution and Rent Reasonableness determination, owners or management companies must submit individual rent increase requests to HPD for individual CoC Mod SRO participants, as leases renew. If the unit is subject to rent stabilization rules, the rent for the unit may not exceed the legal registered rent. All requests must be uploaded to the DTR Portal for review and processing.

Mod Rehab

Rent increases for Mod Rehab contracts are limited by the Operating Cost Adjustment Factor (OCAF) published annually by HUD.

Requests for a rent increase for Mod Rehab contracts will be made and reviewed during the annual contract renewal process. The submission of an executed renewal of HAP Contract listing the new contract rent by a Mod Rehab project owner constitutes a request for a rent increase.

Once a contract-wide rent increase has been approved through the contract renewal execution and Rent Reasonableness determination, owners or management companies must submit individual rent increase requests to HPD for each assisted unit, as leases renew. If the unit is subject to rent stabilization rules, the rent for the unit may not exceed the legal registered rent. All requests must be uploaded to the DTR Portal for review and processing.