Section 8 housing vouchers can feel confusing when you’re trying to figure out who pays for what. The good news? Once you understand the basic formula, everything else falls into place. Let’s break down exactly what Section 8 covers, what comes out of your pocket, and how to make sure you’re not paying more than you should.

The Basic Payment Formula

Here’s how Section 8 calculates what everyone pays. Your local Public Housing Authority (PHA) sets a payment standard based on your area and family size. This is the maximum amount Section 8 will contribute toward rent in your market.

You’ll typically pay 30% of your adjusted monthly income toward rent and utilities. Section 8 covers the difference between your portion and the actual rent, up to the payment standard. If you choose a place that costs more than the payment standard, you’ll need to cover that extra amount yourself.

Example from a small town: In Lancaster, Pennsylvania, the 2025 payment standard for a two-bedroom is around $1,100. If your adjusted monthly income is $1,500, you’d pay $450 (30% of $1,500). Section 8 would pay $650, bringing the total to $1,100.

Example from a large metro: In San Francisco, California, the two-bedroom payment standard is approximately $3,500. With that same $1,500 monthly income, you’d still pay $450, but Section 8 would contribute $3,050.

What Section 8 Directly Covers

Rent payments are the primary expense Section 8 handles. Your voucher payment goes straight from the housing authority to your landlord each month. You’ll never see this money or handle it yourself.

Initial inspections are also covered by the program. Before you move in, the housing authority sends an inspector to ensure the unit meets Housing Quality Standards (HQS). They’ll check for working smoke detectors, adequate heating, safe electrical systems, and proper plumbing. If repairs are needed, the landlord must fix them before Section 8 approves the unit.

Understanding Utility Allowances

This is where things get interesting. Section 8 recognizes that utility costs are part of your housing expenses, so they build in a utility allowance to help cover them.

Your PHA provides a utility allowance schedule that estimates average utility costs for different unit sizes in your area. These allowances vary based on what utilities you’re responsible for paying.

If utilities are included in your rent (landlord pays everything), you don’t get a separate utility allowance. Your 30% payment covers rent with utilities bundled in.

If you pay utilities separately, Section 8 subtracts the utility allowance from your 30% payment. This means you might pay less toward rent so you’ll have money available for utility bills.

Example: Let’s say your 30% portion is $450 and the utility allowance for your two-bedroom apartment is $150 for gas and electric. If your rent is below the payment standard, you’d pay only $300 toward rent ($450 minus $150). You’d then use that $150 savings to pay your actual utility bills. If your real utilities cost $175, you’d pay the extra $25 out of pocket. If they cost $125, you’d save $25.

What You’re Responsible For Paying

Your tenant portion is non-negotiable. This 30% of your adjusted income must be paid on time every month. Late payments can jeopardize your voucher.

Security deposits come from your own funds. Section 8 doesn’t cover move-in costs. Some housing authorities offer loan programs to help with deposits, so ask your caseworker if assistance is available. In places like Seattle, Washington, some PHAs will advance up to one month’s rent as a deposit loan that you’ll repay over time.

Utilities you’re responsible for must be paid directly to the utility company. Keep these current because unpaid utilities can affect your housing inspection status.

Renter’s insurance is required by most landlords, and you’ll need to budget for this. Policies typically cost $15-30 monthly, depending on coverage and location.

Any rent above the payment standard is your responsibility. If you fall in love with a place that rents for $1,300 but your payment standard is $1,100, you’ll need to cover that $200 difference on top of your 30% portion. Make sure you can truly afford this before signing a lease.

Damage beyond normal wear and tear comes out of your pocket. Section 8 covers standard inspections, but if you accidentally damage the property, those repairs are on you.

Who to Ask When You Have Questions

Contact your housing authority caseworker for anything related to your voucher amount, payment standards, utility allowances, or income reporting. They can explain exactly how your payment was calculated and provide the utility allowance schedule for your area.

Ask your landlord about what’s included in rent, when rent is due, late fees, maintenance responsibilities, and lease terms. Get everything in writing. Your landlord should also clarify which utilities you’re responsible for paying.

Request a rent reasonableness determination from your PHA if you think your landlord is charging too much. Housing authorities must verify that Section 8 rents are comparable to non-subsidized units in the area.

Red Flags to Watch For

Your landlord cannot charge you extra fees just because you have a voucher. Application fees, security deposits, and pet deposits must be the same as what non-voucher tenants pay. If a landlord tries to charge you more, report this to your housing authority immediately.

You’re not responsible for repairs needed to pass the initial HQS inspection. Those fall on the landlord. However, after you move in, you’re responsible for keeping the unit clean and undamaged. Annual reinspections will check this.

Never pay rent directly to a landlord without understanding your portion first. The housing authority will tell you exactly what you owe each month. If a landlord asks for more than your tenant portion, contact your caseworker before paying anything extra.

Keep Your Voucher Active

Report all income changes to your housing authority within 10 days. Your payment portion will be recalculated, and failing to report changes can result in owing back payments or losing your voucher.

Attend annual recertifications on time. Missing these appointments can terminate your assistance. Mark the date on your calendar as soon as you receive the notice.

Understanding what Section 8 covers versus what you’re responsible for helps you budget accurately and avoid surprises. When in doubt, ask your housing authority caseworker directly. Keep their contact information handy, and don’t hesitate to reach out whenever questions arise about your lease or responsibilities.