24 C.F.R. § 982.507

Rent to owner: Reasonable rent

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(a) PHA determination. (1) Except as provided in paragraph (c) of this section, the PHA may not approve a lease until the PHA determines that the initial rent to owner is a reasonable rent.

(2) The PHA must redetermine the reasonable rent:

(i) Before any increase in the rent to owner;

(ii) If there is a 10 percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary.

(iii) If directed by HUD.

(3) The PHA may also redetermine the reasonable rent at any other time.

(4) At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or redetermined by the PHA.

(b) Comparability. The PHA must determine whether the rent to owner is a reasonable rent in comparison to rent for other comparable unassisted units. To make this determination, the PHA must consider:

(1) The location, quality, size, unit type, and age of the contract unit; and

(2) Any amenities, housing services, maintenance and utilities to be provided by the owner in accordance with the lease.

(c) Units assisted by low-income housing tax credits or assistance under HUD's HOME Investment Partnerships (HOME) program. (1) General. For a unit receiving low-income housing tax credits (LIHTCs) pursuant to section 42 of the Internal Revenue Code of 1986 or receiving assistance under HUD's HOME Program (for which the regulations are found in 24 CFR part 92), a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME-assisted units in the project that are not occupied by families with tenant-based assistance.

(2) LIHTC. If the rent requested by the owner exceeds the LIHTC rents for non-voucher families, the PHA must determine the rent to owner is a reasonable rent in accordance with paragraph (b) of this section and the rent shall not exceed the lesser of the:

(i) Reasonable rent; and

(ii) The payment standard established by the PHA for the unit size involved.

(3) HOME program. If the rent requested by the owner exceeds the HOME rents for non-voucher families, the PHA must determine the rent to owner is a reasonable rent in accordance with paragraph (b) of this section and the rent shall not exceed the lesser of the:

(i) Reasonable rent; and

(ii) The payment standard established by the PHA for the unit size involved.

(d) Owner certification of rents charged for other units. By accepting each monthly housing assistance payment from the PHA, the owner certifies that the rent to owner is not more than rent charged by the owner for comparable unassisted units in the premises. The owner must give the PHA information requested by the PHA on rents charged by the owner for other units in the premises or elsewhere.

[63 FR 23861, Apr. 30, 1998. Redesignated at 64 FR 26648, May 14, 1999; 79 FR 36164, June 25, 2014; 81 FR 80583, Nov. 16, 2016; 90 FR 894, Jan. 6, 2025; 90 FR 8780, Feb. 3, 2025]

Notes of Decisions

Cited in 8 cases (3 in the last 5 years), 2007–2026 · leading case: Burbank Apts. Tenant Ass'n v. Kargman, 48 N.E.3d 394 (Mass. 2016).

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Burbank Apts. Tenant Ass'n v. Kargman, 48 N.E.3d 394 (Mass. 2016). · cites it 2× “” See 24 C.F.R. § 982.507 (2014); 42 U.S.C. § 1437f(o)(10)(B).”

Matter of Flosar Realty LLC v. New York City Hous. Auth., 127 A.D.3d 147 (N.Y. App. Div. 2015). · cites it 6× “At all times during a Section 8 tenancy, the rent paid to the owner cannot exceed the reasonable rent, as most recently determined by NYCHA (24 CFR 982.507 [a] [4]). In addition to determining the reasonable rent for the initial lease, NYCHA must determine the reasonableness of…”

Montgomery Cnty. v. Glenmont Hills Assocs. Privacy World, 936 A.2d 325 (Md. 2007). “, that it falls within certain HUD-established guidelines set forth in 24 CFR § 982.507 , and (3) that the lease conforms to HUD requirements.”

Williams v. Integrated Cmty. Servs., Inc., 2007 WI App 159 (Wis. Ct. App. 2007). “308 , and 24 C.F.R. § 982.507 . The housing authority then enters into a contract with the owner under which it agrees to make payments to the owner in a specified amount to subsidize the rent.”

Citadel Estates, LLC v. New York City Hous. Auth., 39 Misc. 3d 880 (N.Y. Sup. Ct. 2013). · cites it 2× “The Housing Authority must then *884 determine whether the rent requested by the owner is reasonable in comparison to rent for other comparable, unassisted units (24 CFR 982.507 [a], [b]). The adjustments will take effect commencing at least 60 days after the Housing Authority…”

Matter of People of the State of N.Y. v. Commons West, LLC, 2026 NY Slip Op 01253 (N.Y. App. Div. 2026). “Further, for purposes of assessing whether the rent charged by the landlord is reasonable, the landlord must make available to the PHA its records concerning the apartment in question as well as the amounts of rent it charges for other units, both in the building in question and…”

Savannah Heights Ltd. P'ship v. Dist. of Columbia Hous. Auth. (D.C. Cir. 2022). · cites it 2× “§ 1437f(o)(10)(A); 24 C.F.R. § 982.507 (Rent to owner: Reasonable rent).”

Howitt (D. Mass. 2026). · cites it 2× “Plaintiff alleges Green and Norman replied and “illegally interpreted” 24 CFR 982.507(b)(1)(2), claiming it did not account for any disability or medical requirements.”

— 24 C.F.R. § 982.507(b)(1)(2) — 1 case

Howitt (D. Mass. 2026). “Plaintiff alleges Green and Norman replied and “illegally interpreted” 24 CFR 982.507(b)(1)(2), claiming it did not account for any disability or medical requirements.”

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