What Is the HAP Contract?
The HAP contract is the cornerstone of your Section 8 income. It's a legally binding agreement between you (the landlord) and the Public Housing Authority that obligates the PHA to pay you a specified amount each month for housing a voucher holder.
Key Terms in Every HAP Contract
- Contract rent: The total monthly rent amount (government portion + tenant portion)
- HAP amount: The government's direct payment to you
- Tenant portion: The amount the tenant pays you directly (typically 30% of their adjusted income)
- Contract term: Usually 1 year, with automatic renewal options
- Landlord obligations: Maintain HQS standards, keep the property insured, follow fair housing law
Payment Structure
The PHA calculates the tenant's portion based on their income — generally 30% of adjusted gross income. The difference between contract rent and tenant portion becomes the HAP payment. For very low-income tenants, the government may pay 100% of the contract rent.
Contract Renewal
HAP contracts typically renew automatically each year unless either party gives notice. Rent adjustments happen at renewal and are based on updated FMR tables. You can request a rent increase, but it must be within the PHA's payment standard.
Frequently Asked Questions
Can the PHA terminate the contract?
Only for cause: failure to maintain HQS standards, fraud, or if the tenant moves out. As long as you maintain your property and follow the rules, the contract remains in force.
Can I raise the rent?
Yes, at each renewal period. Your increase request must be within the PHA's current payment standard for your area and unit size.