On September 18, 2014, H.R. 5632 was introduced in Congress in order to “reform and update the flat rent structure for public housing.” The bill has been referred to the House Committee on Financial Services, and has very little chance of passage during the current Congressional term.
The bill would require all public housing agencies to set minimum rents of no less than $50 per month for public housing residents and voucher holders. Of specific interest to private owners of Section 8 properties, the bill would also require HUD to set minimum rents for project-based Section 8 households at no less than $50. Under current law, PHAs can set monthly minimum rents of up to $50 for public housing and voucher households. Based on available data, 73% of PHAs have $50 minimum rents, 11% have no minimum rent, and the remainder have minimum rent between $0 and $50.
In the project-based Section 8 program, HUD has the discretion to set minimum rents up to $50, but has long held the minimum at $25 per month.