What is the difference between income-based rent and flat rent in public housing?
Income-based and flat rents are both defined in 24 CFR 960.253. An income-based rent is a tenant rent that is based on the family’s income and the PHA’s rent policies for determination of such rent. A PHA’s rent policies may specify that the PHA will use a percentage of family income or some other reasonable system. In no case, may the income-based rent exceed the total tenant payment (TTP) for the family minus any applicable utility allowance for tenant-paid utilities. Unlike income-based rents, flat rents do not fluctuate with changes in family income. Flat rents are based on the market rent charged for comparable units in the private unassisted rental market. It is equal to the estimated rent for which the PHA could promptly lease the unit. The flat rent is designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient.
