Last month, MPHA’s Board of Commissioners approved increases to the Housing Choice Voucher (HCV) program’s payment standards and utility allowances (for select programs) for 2026. These changes increase the rent-related costs MPHA covers on behalf of HCV participants, reducing the housing cost burden on participants and expanding the number of units participants can afford.
Payment standards indicate the maximum subsidy MPHA will pay on behalf of participants and are determined using the U.S. Department of Housing and Urban Development’s (HUD) Fair Market Rent (FMR) and local market conditions. Utility allowances represent the maximum subsidy for tenant-paid utilities MPHA will pay on behalf of participants and are based on a local utility analysis by Metropolitan Council and MPHA.
Most HCV participants and applicants are eligible for these adjustments beginning on January 1, 2026. For existing participants, the adjustments will take effect upon their annual recertification or when they move to a new unit, whichever happens first.
MPHA’s adjusted payment standards for 2026 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 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 Minneapolis Public Housing Authority’s new payment standards are, across all bedroom sizes, an average of one percent higher than last year’s. These increases, expected to cost the agency $1.5 to $2.5 million dollars annually, represent an increased investment in housing stability and opportunity. This increase will reduce the housing cost burden of HCV participants, while aiding new and existing program participants to find homes with their voucher.
For most HCV participants, rent contributions are calculated by a flat rate subsidy table based on a household’s income. Participants pay the remaining rent (with a minimum payment of $75 and maximum of 50 percent of adjusted monthly income) and utilities. There are no utility allowances for these participants.
For the roughly 2,100 households participating in select special purpose voucher programs, the household pays 30 percent of their adjusted monthly income (minus utility allowances) and MPHA pays the contracted rent or the payment standard, whichever is lower. Due to an increase in natural gas costs in 2025, MPHA has increased its utility allowances for these 2,100 households to lower the cost burden of utilities. This increase ultimately reduces the utility cost burden on participants.
It is important to note these payment standards do not necessarily represent reasonable rent, but rather the maximum subsidy amount MPHA would pay for rental units based on the number of bedrooms. At MPHA, the agency uses the payment standards, household size, and adjusted household income to determine how much rent a voucher-holder pays and how much MPHA pays for qualifying units (2026 subsidy tables and utility allowance schedules).
Higher payment standards do not automatically trigger higher subsidy payments to landlords. Instead, landlords should submit any rent increase—as part of lease renewal or otherwise—through the Notice of Rent Increase Submission form. MPHA will grant a rent increase if the requested rent is reasonable considering the rental unit’s location, size, age, condition, amenities, and similar factors.
As the housing market locally and nationally has tightened in recent years, MPHA is committed to helping reduce the housing cost burden for the more than 7,200 MPHA voucher-holders and program participants.
———
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 Notice of Rent Increase Submission form. 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.
