Last month, MPHA’s Board of Commissioners approved increases to the Housing Choice Voucher (HCV) program’s payment standards. And yesterday, the Board approved an increase to utility allowances. These increases are based on the U.S. Department of Housing and Urban Development’s (HUD) Fair Market Rent (FMR) and local market conditions. All HCV participants and applicants are eligible for these adjustments beginning on January 1, 2025. For existing participants, the adjustments will take effect upon annual recertification or with a move to a new unit.

MPHA’s adjusted payment standards for 2025 are as follows:

Annual FMRs are determined by HUD for the Twin Cities region using rent data for standard-quality units. Once HUD updates its FMRs, housing authorities across the region then issue their own payment standards based on the needs of their local community, in a range between 90 and 110 percent of the regional FMR.

The new payment standards are, across all bedroom sizes, an average of four percent higher than last year’s. These increases, expected to cost the agency $5 to $7 million dollars annually, represent an increased investment in housing stability and opportunity. They will both reduce the housing cost burden of voucher-holders and program participants, while aiding new and existing program participants find homes with their Housing Choice Voucher.

It is important to note these payment standards do not necessarily represent reasonable rent, but rather the maximum subsidy amount the housing authority would pay for rental units based on the number of bedrooms. At MPHA, the agency uses the payment standards and household income to determine a voucher-holder’s contribution of rent and the subsidy amount for qualifying units (2025 subsidy tables and utility allowance schedules).

As the housing market locally and nationally has tightened in recent years, MPHA is committed to helping reduce the housing cost burden of its for more than 7,000 voucher-holders and program participants. Beyond reducing the cost burden for those in existing units, this payment standard increase will also expand the number of units voucher-holders will be able to afford with the higher subsidy.

Higher payment standards do not automatically trigger higher subsidy payments to landlords. Instead, landlords request a contract rent increase, which MPHA grants if the requested rent is reasonable considering the rental unit’s location, size, age, condition, amenities, and similar factors.

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Landlords interested in renting to voucher holders can post properties for free on housinglink.org and can contact owneroutreach@mplspha.org to share property details.

Landlords should submit any rent increase–as part of lease renewal or otherwise–through the form on the Contract Rent Increase page. Any questions on this process can be directed to Chad Biggers at cbiggers@mplspha.org.

Participants with questions about this change can contact their HCV Technicians at 612-342-1480 or contacthcv@mplspha.org.