Exception Payment Standards: Going Above 110% FMR

In high-cost rental markets, the standard payment standard — typically set between 90% and 110% of the local Fair Market Rent — often isn't enough for voucher holders to actually compete for units. Exception payment standards are HUD's mechanism for allowing PHAs in these markets to go above 110% FMR.

When Exception Standards Are Used

A PHA can request an exception payment standard from HUD when it can demonstrate that the standard FMR is not sufficient to allow voucher holders to lease units in the area with a reasonable success rate. HUD uses "success rate" data — the percentage of issued vouchers that result in a leased unit — as a key indicator.

What the Numbers Mean for Tenants

A higher payment standard means the PHA pays more toward your rent, which expands the range of units you can afford. If the payment standard is 120% FMR instead of 100% FMR, you can potentially access units 20% more expensive — a meaningful difference in high-cost markets.