Payment Standards

Landlords and tenants frequently ask us what the payment standards are and who determines them. Each year HUD issues a Fair Market Rent document for each county. That document contains their determined fair market value for various sized complexes. Since vouchers are issued via bedroom size, the fair market value reflects a combination of apartment, home, and mobile home rates. Generally, Stutsman County receives new rates for efficiency, one, two, three, and four bedroom vouchers. Fair Market Rates include the rent plus utilities. These numbers are released during the summer.

Once a housing authority reviews the fair market rates, the authority board can make adjustments according to their knowledge of the local market. The board can set the “Payment Standard” in a range of 90% to 110% of the fair market rate. Each fall the board must set the payment standard and notify HUD of the adjusted rates. The payment standards are in effect for one year, and again, include rent plus utilities.

Payment standard is not necessarily what SCHA will pay a landlord, rather it is a standard used to determine the maximum SCHA can assist a tenant. SCHA will be issuing new payment standards in the coming weeks.