How the Section 8 Voucher Amount Is Calculated
The Housing Choice Voucher subsidy splits rent between you (TTP) and HUD (HAP). Here is the exact math from 24 CFR § 982 and HUD Handbook 7420.10.
1. Adjusted income
Start from gross monthly income, then subtract HUD deductions: $480/year per dependent, $525/year per elderly or disabled household member, dollar-for-dollar non-reimbursed medical (elderly/disabled only) and childcare, and any excluded disability assistance.
2. Tenant payment (TTP)
TTP = the greater of (a) 30% of adjusted income, (b) 10% of gross income, or (c) the PHA minimum rent. This is your share of the rent.
3. Housing Assistance Payment (HAP)
HAP = min(payment standard, total rent including utilities) − TTP. The PHA pays HAP directly to your landlord. The payment standard is usually the HUD Fair Market Rent for your unit size.
4. The 40% first-lease cap
When you first sign a lease, HUD caps TTP at 40% of adjusted income so very low-income households are not rent-burdened above that line. Later, the cap no longer applies.
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Your details
Select your state and county to auto-load the HUD FY2026 Fair Market Rent — no manual FMR entry needed.
Sources & method
FMR: HUD FY2026 Fair Market Rent County Level Data (revised; effective 2026-05-21). Subsidy math: 24 CFR § 982 + HUD Handbook 7420.10. TTP = max(30% adjusted income, 10% gross, PHA minimum); HAP = min(payment standard, total rent) − TTP. First-lease cap at 40% adjusted income. Standard deductions: $480/yr per dependent, $525/yr per elderly/disabled member.
FAQ
What is TTP?
Total Tenant Payment — what you pay toward rent. It is the highest of 30% of adjusted income, 10% of gross income, or a PHA minimum (often $0–$50).
What is HAP?
Housing Assistance Payment — the subsidy HUD pays your landlord. HAP = min(payment standard, total rent) − TTP.
What is the 40% cap?
At your first lease, TTP cannot exceed 40% of adjusted monthly income (the "40% rule"), so very low incomes get a capped TTP and a larger HAP.
Are deductions real?
Yes. HUD allows $480/yr per dependent and $525/yr per elderly/disabled member, plus dollar-for-dollar medical (elderly/disabled) and childcare. These lower adjusted income and your TTP.
About this tool
Maintained by the voucherfig research team. Figures derive from U.S. Department of Housing and Urban Development (HUD) FY2026 Fair Market Rent County Level Data (revised; effective 2026-05-21) and 24 CFR § 982. Calculation methodology reviewed against HUD Handbook 7420.10.
Data retrieved: 2026-08-23. HUD data is public domain (U.S. federal government work).