Section 8 Payment Standards NYC 2025: What Landlords Need to Know

Payment standards determine the maximum amount a Housing Authority will pay toward rent on behalf of a Section 8 voucher holder. For NYC landlords, understanding these numbers is essential for pricing units competitively and maximizing rental income while staying within program limits.

This guide covers the current payment standards for NYCHA, HPD, and HCR vouchers, how utility allowances affect your bottom line, and how to request rent increases within the program.

What Are Payment Standards?

Payment standards represent the maximum monthly subsidy a Public Housing Authority (PHA) will pay to a landlord. They're based on HUD's Fair Market Rents (FMR), which HUD publishes annually using rental market data. PHAs can set their payment standards between 90% and 110% of the published FMR.

The payment standard is not the same as the maximum rent you can charge. You can charge more than the payment standard, but the tenant must pay the difference—and their total housing cost (rent plus utilities) cannot exceed 40% of their adjusted gross income at initial lease-up.

For a deeper comparison of how payment standards differ between NYC's three Section 8 administrators, see our guide on HPD vs NYCHA Section 8: Understanding the Differences.

NYCHA Payment Standards (Effective July 1, 2025)

These are the standard Voucher Payment Standards for new rentals, transfers, and annual recertifications:

These figures represent what NYCHA will pay before utility allowances are deducted. The actual HAP payment you receive depends on the tenant's income and which utilities they pay.

Exception Payment Standards (EPS)

NYCHA and HPD have adopted Exception Payment Standards for "high opportunity" neighborhoods—areas with lower poverty rates, lower crime, and better-resourced schools. EPS allows subsidy levels to more closely match higher local rents.

For example, while the standard 1-bedroom payment is $2,762, EPS areas can go up to $4,452 for a 1-bedroom—a difference of nearly $1,700 per month.

EPS applies to:

Voucher holders currently residing in EPS zip codes

New lease-ups in EPS zip codes

To check if your property is in an EPS zone, download NYCHA's Exception Voucher Payment Standards spreadsheet, which lists payment standards by zip code.

How Utility Allowances Work

When tenants pay their own utilities, the PHA deducts a utility allowance from the payment standard. This affects your actual HAP payment.

NYCHA Utility Allowances (Effective January 1, 2025):

Cooking Gas + Electric (no electric stove):

Gas Heat and Hot Water:

Electric Heat and Hot Water:

Example calculation: You have a 2-bedroom unit renting for $3,000. The tenant pays cooking gas and electric. The utility allowance is $177.

• Payment standard: $3,058
• Gross rent: $3,000 (within payment standard)
• Utility allowance: $177
• Adjusted payment standard: $3,058 - $177 = $2,881

If the tenant's share (30% of income) is $900, your HAP payment would be $2,100 ($3,000 - $900).

Landlord tip: Units where you include utilities in the rent don't have utility allowances deducted, which can result in higher HAP payments to you.

HPD and HCR Payment Standards

HPD and HCR also administer Section 8 vouchers in NYC with their own payment standard schedules. While the base FMR is the same, the timing of updates and specific policies may differ.

HPD's payment standards are published on their Subsidy and Payment Standards page. HPD also uses Exception Payment Standards in designated opportunity areas.

For HCR vouchers, contact the Subsidy Services Bureau at 212-480-6672 for current payment standards.

The Rent Reasonableness Requirement

You can't charge whatever you want just because the payment standard is high. HUD requires PHAs to verify that proposed rents are "reasonable"—meaning they don't exceed rents for comparable unsubsidized units in the same area.

NYCHA uses AffordableHousing.com to conduct rent reasonableness evaluations. The system compares your unit to similar unsubsidized units within a ¼ mile radius, considering:

• Unit size and type
• Age of the building
• Location
• Property amenities and services
• Utilities included in rent

If your proposed rent exceeds the reasonable rent range, NYCHA will not approve the lease or rent increase. You can:

Accept the reasonable rent amount

Submit your own rent comparables through AffordableHousing.com for reconsideration

Rent reasonableness applies to new leases, transfers, and rent increase requests.

How to Request a Rent Increase

After the initial lease term, you can request a rent increase at lease renewal. Here's the process:

Step 1: Submit a completed "Landlord Request for Lease Renewal Approval" form at least 60 days before the effective date.

Step 2: Include all required supporting documents (varies by unit type—rent-stabilized units need different documentation than market-rate units).

Step 3: NYCHA conducts a rent reasonableness evaluation.

Step 4: If approved, NYCHA issues a new HAP contract with the updated rent. If denied, you can submit comparables or accept the reasonable rent amount.

Key rules:

No rent increases during the initial lease term

Submit requests at least 60 days before the new lease effective date

Late requests may delay your increase

All increases must comply with local rent laws (including Rent Stabilization and Good Cause Eviction)

For rent-stabilized units, Section 610 of the Private Housing Finance Law (signed December 2022) allows owners to collect up to the full rental subsidy amount, even if it exceeds the legal rent, subject to rent reasonableness. You'll need approval from the lead regulatory agency (HPD, HCR, or HDFC).

The fastest way to submit rent increase requests is through the NYCHA Owner Extranet.

What If the Tenant's Portion Goes Unpaid?

Payment standards and HAP payments are only part of the equation. The tenant is responsible for their portion of the rent, typically 30% of their adjusted income.

If a tenant falls behind on their portion, you have remedies—but you cannot pursue eviction for NYCHA's portion of the rent. See our complete guide on What to Do When Your Section 8 Tenant Isn't Paying Their Portion for step-by-step guidance on collection, communication with the PHA, and legal options.

Payment Standards vs. CityFHEPS

If you're comparing voucher programs, it's worth noting that CityFHEPS (the city-funded voucher program) has its own payment standards, which are indexed to NYCHA's Section 8 FMR. The current CityFHEPS maximums are similar to Section 8:

For a complete breakdown of CityFHEPS requirements and how they compare to Section 8, see our CityFHEPS Landlord Requirements Guide.

How Payment Standards Affect Your Listing Strategy

Understanding payment standards helps you price units competitively for the voucher holder market:

Price at or below the payment standard to attract the widest pool of applicants. Tenants searching with vouchers often filter by what they can afford, and units priced above the standard require them to pay the difference out of pocket.

Consider utilities carefully. A unit priced at $2,800 with tenant-paid utilities might net you less than a unit priced at $2,900 with utilities included, depending on the utility allowance calculation.

Know your neighborhood. If you're in an EPS zip code, you have significantly more pricing flexibility. A 2-bedroom in a high-opportunity zone might support $4,500+ in rent versus $3,058 in a standard zone.

Factor in inspections. Your unit must pass an HQS inspection before the lease can begin. Review our Section 8 Inspection Checklist for NYC to make sure your unit is ready.

Annual Changes and Recertification Impact

Payment standards are updated annually, typically effective July 1 for NYCHA. Utility allowances are updated January 1.

When payment standards increase, existing tenants benefit at their next annual recertification—not immediately. If the new payment standard is higher than your current contract rent, the tenant's portion may decrease while your rent stays the same.

For details on how recertification affects both landlords and tenants, see our guide on Section 8 Annual Recertification in NYC.

Frequently Asked Questions

Can I charge more than the payment standard? Yes, but the tenant must pay the difference, and their total housing cost cannot exceed 40% of their income at initial lease-up. Many voucher holders cannot afford units priced significantly above the standard.

When do new payment standards take effect for existing tenants? At their next annual recertification, not immediately when standards change.

What's the difference between payment standard and contract rent? The payment standard is the maximum subsidy the PHA can pay. The contract rent is what you actually charge. Your HAP payment is the contract rent minus the tenant's portion (which is based on their income).

Why did my HAP payment decrease even though I didn't change the rent? If the tenant's income increased, their portion went up and your HAP went down. The contract rent stays the same—only the split between tenant and PHA changes.

Can I refuse to renew if I want to raise rent above the reasonable amount? You must comply with all applicable laws, including Good Cause Eviction (for covered units) and Rent Stabilization (if applicable). Non-renewal solely to increase rent beyond reasonable limits may not be permitted.

Do payment standards apply to project-based vouchers? Project-based vouchers have different rent determination rules. Contract rents are based on market comparables and cannot exceed 110% of FMR or EPS. Contact HPD at PBV@hpd.nyc.gov for project-based rent questions.

Contact Information

NYCHA:

Customer Contact Center: 718-707-7771

Owner Extranet: eapps.nycha.info/Adorea

Payment Standards FAQ

Rent Reasonableness FAQ

HPD:

Client Services: 917-286-4300

Subsidy and Payment Standards

HCR:

Subsidy Services Bureau: 212-480-6672

---

Ready to list your property? Post your vacancy and connect with voucher holders actively searching for housing in NYC.

Want to maximize your rental income? VoucherMatch Pro helps landlords identify rent increase opportunities based on current Fair Market Rents. Learn more about Pro features.