Payment standards are used to calculate the housing assistance payment (HAP) that the IHA pays to the owner on behalf of the family leasing the unit. Under Federal regulations, a housing agency has the discretion to set its payment standards amounts from 90 percent to 110 percent of the published Fair Market Rent (FMR), and may set them higher or lower with HUD approval.

Whenever the FMR increases or decreases, the IHA must ensure that its payment standards remain within the basic range. Prior to the effective date of any new FMRs, the IHA must review its payment standard schedule and amend it as needed to ensure that the payment standards remain within the basic range (90 percent to 110 percent of the new FMR). If the FMR increases, the IHA must be sure that the payment standards for each unit size are at least 90 percent of the new FMR. Similarly, if the FMR decreases, the IHA must be sure that the payment standards are not more than 110 percent of the new FMR.

The maximum rent standard established by the IHA is now at 110% of HUD's current Fair Market Rent.

This is the maximum assistance that will be paid by the IHA.