The family must find a suitable unit – submit the required documents and the MHA must then inspect the unit for compliance with HUD established guidelines. The Payment Standards established by the MHA does not limit or affect the amount of rent an owner can charge or the family may pay; however, the rent must be reasonable. Rent is reasonable when it does not exceed the rent being charged for similar units in the general vicinity of the unit being proposed for assistance.
The family pays rent based upon 10% of gross income, 30% of monthly gross income less deductions to which a family is entitled, whichever is the greater but may never pay more than 40% of monthly gross income less deductions. If the unit rent exceeds the Payment Standard, the family is required to pay the additional amount. The MHA uses a HUD formula to determine the rent subsidy and the family portion of the rent.
The rent subsidy paid by the MHA is generally the lesser of the established Payment Standard minus 30% of the family's adjusted income or the gross rent [owner rent + utility allowance] for the unit minus 30% of monthly adjusted income.