Section 8 Voucher Estimator

Section 8 is the informal name for the Housing Choice Voucher Programme, a federal rent assistance programme administered by HUD. Qualifying low-income households receive a voucher that covers most of their rent, with the tenant contributing 30% of their adjusted gross income. Landlords receive the balance directly from the local Public Housing Authority. The programme is named after Section 8 of the Housing Act of 1937.

Fair Market Rent (FMR) is the amount HUD determines a unit should rent for in a given area, including utilities. HUD calculates FMRs annually for every metropolitan area and non-metropolitan county in the country using American Community Survey data. PHAs set their Payment Standards based on local FMRs. The national averages used in this tool are approximations; the actual FMR for your city may be significantly higher or lower.

In California, FMRs are significantly above the national average, particularly in the Bay Area, Los Angeles, and San Diego. For example, the FMR for a 2-bedroom in San Francisco is well above $3,000. Your local Housing Authority sets its Payment Standard between 90% and 110% of the local FMR. The voucher covers the difference between the Payment Standard and your rent contribution (30% of adjusted income). High FMRs mean larger vouchers in California, but also more competition for units where landlords accept vouchers.

Texas FMRs vary widely by city. The Dallas-Fort Worth metro has higher FMRs than rural West Texas. Major Texas PHAs include the Dallas, Houston, San Antonio, and Austin Housing Authorities. Texas has a large number of participating landlords, which makes the voucher useful in practice. Enter your income into this tool to estimate your contribution; contact your local Texas PHA for the exact Payment Standard in your area.

New York City’s Housing Authority (NYCHA) administers vouchers, and the city also has its own local CityFHEPS voucher programme. NYC FMRs are among the highest in the country. The waiting list for a federal Section 8 voucher in New York City has been closed for years. Households who receive a voucher can use it across the five boroughs or port it to another city. NYC also has a local emergency rental assistance voucher for qualifying households that operates separately from the federal programme.

To qualify for Section 8, your household income must generally be at or below 50% of the Area Median Income (AMI) for your location. Income limits are set by HUD annually and vary by family size and geography. Most PHAs are required to admit 75% of new voucher holders from households at or below 30% of AMI. HUD publishes income limits at its website. Enter your gross monthly income into this tool to see your estimated 30% rent contribution.

Most Housing Authority waiting lists are years long, and many are closed entirely. Some PHAs use lotteries rather than queues: they open the waiting list for a brief period, collect applications, and then randomly select applicants. The wait time varies from under a year in rural areas to over a decade in high-demand cities like Los Angeles and New York. Apply to as many open waiting lists as you can, including in surrounding areas, and check each PHA’s website regularly for openings.

In some states and cities, landlords are prohibited from refusing to rent to voucher holders under source-of-income discrimination laws. States that ban voucher discrimination include California, Connecticut, Massachusetts, New Jersey, New York, Oregon, and Washington. In states without such protections, landlords can legally decline to participate in the programme. If you believe a landlord refused you because of your voucher, contact your local fair housing organisation to assess whether you have a discrimination claim.

If you choose a unit where the rent exceeds your local Payment Standard, you pay the full overage on top of your standard 30% contribution. Some PHAs allow this if the total tenant share does not exceed 40% of your adjusted gross income. If the rent is significantly above the Payment Standard, the voucher becomes less effective and the unit may not be approved by the Housing Authority inspector. It is usually better to find a unit priced at or near the Payment Standard to get maximum benefit from your voucher.

HUD’s Fair Market Rents include an allowance for utilities. If the landlord pays all utilities, the full FMR applies. If the tenant pays some or all utilities, the PHA provides a Utility Allowance that offsets the tenant’s contribution to reflect this cost. The Utility Allowance is subtracted from the tenant’s rent contribution, effectively giving tenants a credit toward their utility bills. Ask your local Housing Authority for the Utility Allowance schedule for your unit type and location.