The Housing Choice Voucher Program, often referred to as Section 8, is a government initiative designed to assist low-income families, the elderly, and individuals with disabilities in affording decent, safe, and sanitary housing in the private market. A key question for both landlords and tenants is: How Much Does Section 8 Pay? This guide provides a detailed breakdown of voucher payment standards and utility allowances, focusing on the New York City Housing Authority (NYCHA) as an example.
The Voucher Payment Standard (VPS) and Utility Allowance Schedules determine the maximum subsidy NYCHA will provide to the landlord on behalf of the voucher holder. The payment standard is based on the Fair Market Rent (FMR) for each unit size, as established by the Department of Housing and Urban Development (HUD). These standards typically range between 90% and 110% of the published FMR.
Understanding NYCHA’s Voucher Payment Standards
As of April 1, 2025, the Housing Choice Voucher Program Voucher Payment Standards for new rentals, transfers, and annual recertifications are as follows:
| Bedroom Size | Payment Standard ($) |
|---|---|
| 0 | $2,624 |
| 1 | $2,696 |
| 2 | $3,027 |
| 3 | $3,777 |
| 4 | $4,070 |
| 5 | $4,680 |
| 6 | $5,291 |
| 7 | $5,901 |
| 8 | $6,512 |
These figures represent the maximum amount NYCHA will contribute towards the rent. The tenant is responsible for paying the difference between the actual rent and the voucher payment standard, up to a certain limit based on their income.
Delving into Utility Allowance Rates
In addition to the payment standard, Section 8 also provides utility allowances to help cover the costs of utilities such as cooking gas, electricity, oil, and gas. These allowances are adjusted based on the number of bedrooms in the unit and the type of heating and hot water system used. Here’s a look at the utility allowance rates effective January 1, 2025:
Cooking Gas and Electric (No Electric Stove)
| No Bedrooms | 0 | 1 | 2 | 3 | 4 | 5 or more |
|---|---|---|---|---|---|---|
| Cooking Gas ($) | $26 | $29 | $33 | $37 | $41 | $45 |
| Electric ($) | $96 | $109 | $144 | $178 | $213 | $248 |
| Total (w/ Cooking Gas & Electric) ($) | $122 | $138 | $177 | $215 | $254 | $293 |
Oil Heat and Hot Water
| No Bedrooms | 0 | 1 | 2 | 3 | 4 | 5 or more |
|---|---|---|---|---|---|---|
| Oil Hot Water Only ($) | $29 | $34 | $49 | $64 | $79 | $93 |
| Oil Heat Only ($) | $94 | $111 | $127 | $142 | $158 | $174 |
| Total (Oil Heat & Hot Water) ($) | $123 | $145 | $176 | $206 | $237 | $267 |
Gas Heat and Hot Water
| No Bedrooms | 0 | 1 | 2 | 3 | 4 | 5 or more |
|---|---|---|---|---|---|---|
| Gas Hot Water Only ($) | $20 | $23 | $33 | $44 | $54 | $64 |
| Gas Heat Only ($) | $65 | $76 | $88 | $98 | $109 | $119 |
| Total (Gas Heat & Hot Water) ($) | $85 | $99 | $121 | $142 | $163 | $183 |
Electric Heat and Hot Water
| No Bedrooms | 0 | 1 | 2 | 3 | 4 | 5 or more |
|---|---|---|---|---|---|---|
| Electric Hot Water Only ($) | $38 | $45 | $57 | $70 | $82 | $95 |
| Electric Heat Only ($) | $54 | $63 | $84 | $105 | $126 | $147 |
| Total (Electric Heat & Hot Water) ($) | $92 | $108 | $141 | $175 | $208 | $242 |
It’s important to note that the electric heat allowance applies only to Section 8 tenants responsible for paying their own electric heat. Also, these figures don’t include allowances for cooking with gas or electricity, or for electricity used for lighting and appliances.
Electric (Including Electric Cooking Range)
| No Bedrooms | 0 | 1 | 2 | 3 | 4 | 5 or more |
|---|---|---|---|---|---|---|
| Including Electric Cooking Range ($) | $111 | $127 | $170 | $212 | $255 | $298 |
This allowance includes electricity and the use of an electric stove.
Heat Pump
| No Bedrooms | 0 | 1 | 2 | 3 | 4 | 5 or more |
|---|---|---|---|---|---|---|
| All Heat Pumps | $32 | $37 | $41 | $48 | $57 | $67 |
This allowance applies to heat pumps in both apartment buildings and single-family homes.
It’s crucial to remember that these allowances are specific to NYCHA. If you are working with a different government housing partner, you should consult them to confirm the utility allowances they use.
Exception Payment Standards
NYCHA has also implemented Exception Payment Standards (EPS) for high-opportunity neighborhoods. This aims to broaden housing choices for voucher holders and alleviate potential rent burdens in these areas. These EPS, effective January 1, 2024, apply to households currently residing in EPS zip codes and new leases in EPS zip codes. You can find the specific Exception Voucher Payment Standards for new rentals, transfers, and annual recertifications by zip code for 2024 in this Excel sheet.
Factors Influencing How Much Section 8 Pays
Several factors influence how much Section 8 actually pays for a tenant’s rent:
- Fair Market Rent (FMR): HUD determines FMRs for different metropolitan areas and nonmetropolitan counties. These FMRs represent the 40th percentile of gross rents for standard quality rental housing in a given area.
- Payment Standard: The payment standard is typically a percentage of the FMR, usually between 90% and 110%.
- Tenant Income: The tenant’s income plays a crucial role. Generally, tenants pay approximately 30% of their adjusted gross income towards rent and utilities.
- Utility Allowances: As detailed above, these allowances offset the cost of utilities, reducing the tenant’s overall housing expenses.
Navigating the Section 8 Landscape
Understanding how much Section 8 pays involves navigating a complex system of payment standards, utility allowances, and income calculations. While the NYCHA guidelines provide a helpful example, it’s crucial to consult with your local housing authority to determine the specific payment standards and allowances in your area. Doing so ensures accurate budgeting and a clear understanding of your responsibilities as either a tenant or a landlord participating in the Housing Choice Voucher Program.
