Section 8 Utility Allowance: How Gross Rent Is Calculated
Updated · Reviewed against current HUD program rules
Under 24 CFR 982.517, your voucher math runs on gross rent, not the rent on the lease. Gross rent equals contract rent (what the owner charges) plus the utility allowance (your PHA's estimate of tenant-paid utilities). The PHA compares that gross figure to the payment standard to decide whether a unit is affordable under your voucher.
This guide walks through Form HUD-52667, works a numeric example, explains tenant-paid versus owner-paid utilities, and includes an estimator below. Dollar figures here are clearly-labeled illustrative examples; only your PHA's published schedule controls your case. For voucher basics, see our Housing Choice Voucher guide.
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The core formula: gross rent
Gross rent = contract rent + utility allowance. If the lease says $1,100 and your PHA's allowance for your bedroom size and utilities is an illustrative $150, the PHA evaluates the unit at $1,250 gross rent. When the owner pays all utilities, the allowance is zero and gross rent equals contract rent.
The payment standard (usually 90 to 110 percent of the local Fair Market Rent) caps the gross rent your voucher supports. If gross rent exceeds the standard, you may still rent the unit by paying the difference, subject to the 40-percent-of-income cap at lease-up. Browse county FMR pages to see the benchmarks behind local standards.
Form HUD-52667 walkthrough
Form HUD-52667 is the worksheet PHAs use to build utility allowance schedules. Follow it line by line. First, identify the unit type (apartment, townhouse, or detached house) and bedroom count, since larger and detached units get higher allowances. Second, mark which utilities and appliances the tenant pays for: heating, cooking, electric, water, sewer, trash, air conditioning, and refrigerator or range charges when the tenant supplies them.
Third, read across to the dollar figure for each tenant-paid item and add them up. Fourth, apply the result as the utility allowance in the gross-rent formula. PHAs update these schedules periodically, so always use the current schedule for your bedroom size and utility mix rather than last year's figures.
Worked example with illustrative numbers
Take a 2-bedroom apartment with contract rent of $1,100 per month. Suppose the tenant pays heating (illustrative $68), electric (illustrative $42), cooking (illustrative $14), and water and sewer (illustrative $38), for a subtotal of $162. Add the illustrative 2-bedroom adjustment of $22, giving an estimated utility allowance of $184.
Gross rent is then $1,100 plus $184, or $1,284. If the PHA payment standard for a 2-bedroom is $1,450, the unit passes comfortably. If the standard were $1,200, the $84 gap would fall on the tenant, subject to the 40-percent cap. Remember: every dollar here is illustrative. Your PHA schedule governs.
Tenant-paid versus owner-paid utilities
Who pays each utility changes the math. Tenant-paid utilities raise the allowance and therefore the gross rent, which can push a unit over the payment standard even when the contract rent looks cheap. Owner-paid utilities lower the allowance (sometimes to zero) and make the same contract rent easier to approve.
When comparing two apartments, always compare gross rents, not lease rents. A $1,050 unit where you pay heat and electric can cost the voucher more than a $1,150 all-utilities-included unit. Ask the landlord exactly which utilities are included before you apply, and confirm the figures against your PHA schedule. If you are still shopping, our application guide and income limits guide help you plan the search.
Try the estimator
Use the calculator below to estimate a utility allowance band, gross rent, and whether the result fits a payment standard. It uses the same illustrative defaults as the worked example and degrades to this explainer text when JavaScript is disabled.
Utility allowance estimator: gross rent equals contract rent plus the utility allowance (24 CFR 982.517). Enable JavaScript to use the interactive tool, or apply the formula manually with your PHA schedule.
Sources
Sources: HUD HCV Guidebook · HUD NSPIRE · 24 CFR 982.517 · HUD housing counseling
Updated 2026-09-05 · Vintage: HUD FY2026 program rules · By SubsidizedHousing.org