Understanding Housing Vouchers

[Jason Bales]

I get a lot of questions about housing vouchers and how you determine rent amount allowed.

Each housing authority (HA) provides a voucher amount determined by bedroom and some further define it by zip code or city within their covered area. They determine this based on a % of Fair Market Rent (FMR). Some programs are 100% of FMR, some 105% or greater (like the Walker Settlement Voucher in Dallas Housing Authority), some less. Each is different.

Out of that voucher amount, they will have a utility and appliance work sheet that provides a cost for each utility or appliance not provided by a landlord for each bedroom size. So, if your property has all bills paid by the tenant, you will deduct from the voucher amount the set amount by bedroom count for items like water, electric, gas, etc. Then, for example if you don’t provide a fridge (which we recommend you do not), you will deduct the amount for the fridge as well.

Many voucher holders also work and so sometimes they will have a higher amount to spend than someone who doesn’t work because they can pay up to a % of their net income from the HA’s calculations, often 30-40%. Keep in mind not all HAs work the same.