Oakland Section 8 - rent increase

[Jessica Yau]

I recently gave my Section 8 tenant a 60 day notice of a rental increase from $1,095 to $1,300. Section 8 reviewed my request and only approved an increase to $1,200. Any one know what my options are from here? I'm working under the assumption that I am allowed to increase the rent to what I deem as market rate (1,300). If the tenant wants to stay, they will have to cover the portion Section 8 doesn't? If they don't want to stay, then we terminate the lease?