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New Voucher Payment Standards Takes Effect On Oct. 1 After HUD’s Increase Approval

New Voucher Payment Standards Takes Effect On Oct. 1 After HUD's Increase Approval| Investopedia

The U.S. Department of Housing and Urban Development has approved a request from the city of Los Angeles to increase amounts of voucher payment standards that assist low-income and homeless residents with rent payments.

New Voucher Payment Standards Takes Effect On Oct. 1 After HUD’s Increase Approval| Photo: Shopify

The Housing Authority of the City of Los Angeles made the request earlier this year.

The new voucher payment standards will come into effect on October 1st for new contracts. This increase to 120% of the new Fair Market Rents will provide additional support for landlords to house more homeless individuals in Los Angeles.

People who receive housing vouchers, like Section 8 housing, will receive more financial assistance to help with rent and remain in their homes.

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The adjusted payment standard for different types of housing units is as follows:

  • For a studio, the new voucher payment standards will be $2,132, for a one-bedroom the VPS will be $2,407, $3,052 for a two-bedroom, $3,915 for a three-bedroom.
  • For a four-bedroom, the new voucher payment standards will be $4,320, while the new voucher payment standards for a five-bedroom will be $4,968, and $5,616 for a six-bedroom.

The Housing Authority sets Voucher Payment Standards (VPS) based on the Fair Market Rents (FMR) established by HUD. The voucher payment standards represent the maximum subsidy provided by the Housing Authority towards the total rent, including utilities and appliances. If the rent exceeds the voucher payment standards, the family is responsible for paying the difference, according to HACLA.

READ MORE| LA Housing Voucher Programs Receive Boost from Federal Government

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