HUD requires PHAs to allow families residing in public housing a choice of rent annually. The choice of rent is based on either the family’s income or is a “flat rent” amount generally based on 80% fair market rents for the PHA’s jurisdiction as determined by HUD. PHAs are required to provide families a choice of rent at the onset of occupancy and at their reexamination. PHAs must determine flat rents annually, generally at no less than 80% of that fiscal year's Fair Market Rent (or Small Area Fair Market Rent). PHAs do not need to seek prior approval to set their flat rent at any level between 80-100% of the Fair Market Rent. PHAs have 90 days from the effective date of that fiscal year's Fair Market Rent to implement its flat rent.

Families paying flat rent and experiencing financial hardship may contact the PHA to request to switch to income-based rent. The Rent Choice fact sheet provides more information on the two choices of rent. 

If the PHA believes that 80% of the Fair Market Rent does not reflect the appropriate market conditions, then a flat rent exception request will be required to set flat rent less than 80%. That request must be approved by HUD before it can be implemented. Beginning in Fiscal Year 2023, HUD has updated its flat rent exception request submission process for new requests and extension requests.

NEW REQUESTS

A new request can be submitted if the PHA has 1) a first-time submission; 2) a flat rent extension that has expired; and 3) no change in local market conditions since the previous flat rent exception approval. 

Submit new requests electronically to HUD’s Flat Rent Team at flatrentexceptionrequests@hud.gov.

• Submit an email to HUD’s Flat Rent Team with the subject format of Flat Rent Exception Request - PHA Code Formal PHA Name - New (example: Flat Rent Exception Request - US101 US Housing Agency - New. Attach a letter signed by the executive director that includes:
  • The name of the PHA property (or properties) subject to the flat rent exception request including AMP number(s)
  • The address of the property (or properties) subject to the flat rent exception request
• Attach the Flat Rent Market Analysis (HUD Form 5880) as an Excel workbook ending in the .xlsx extension
• Attach any supplemental documentation

If a PHA does not have Microsoft Excel, please email flatrentexceptionrequests@hud.gov to discuss an alternative format for completion of the Flat Rent Market Analysis. Do not use the subject format above when requesting technical assistance questions.

EXTENSION REQUESTS

If HUD approved a PHA’s flat rent exception request from a previous fiscal year, the PHA may request an extension of this approval. A PHA is eligible for an extension if the 1) request is for the exact rents as previously approved by HUD; 2) market study accompanying the previously approved request is no more than two years old; and 3) market conditions remain unchanged.

Submit extension requests electronically to flatrentexceptionrequests@hud.gov. The following information must be included in this format:

• Submit an email to HUD’s Flat Rent Team with the subject format of Flat Rent Exception Request - PHA Code Formal PHA Name - Extension (example: Flat Rent Exception Request - US101 US Housing Agency - Extension);
• Attach the original Flat Rent Market Analysis (HUD Form 5880) that was submitted in the previously approved request as an Excel workbook ending in the .xlsx extension, that is no more than two-years-old;
• A copy of the previous HUD approval letter;
• HUD Form 5880 submitted in the previously approved request; and
• A letter signed by the executive director that includes:
  • A request for the previously approved flat rents be extended.
  • The date of the previous market study.
  • The flat rent schedule to be extended.
  • A certification that the market conditions remain unchanged.

HUD will not approve extension requests that include changes or additions to previously approved exception flat rents. Instead, a new request would need to be submitted to make the proposed changes or additions. Do not use the subject format above for technical assistance questions.

If during the two-year renewal period the PHA becomes aware of a change in local market conditions that would impact the market (e.g., a major employer enters or leaves the area, significant private sector redevelopment), the PHA must either:

1. Discontinue the use of the current flat rent exception and implement a flat rent that is at least equal to the lower of 80 percent of the FMR or 80 percent of the SAFMR (or if no SAFMR is available, 80 percent of the unadjusted rent), or
2. Conduct a new market analysis and submit a new flat rent exception request to HUD for approval (if the PHA selects this option, it may continue to use the current flat rent exception amounts until HUD issues its decision).