Long Beach Rent Reasonableness

Rent reasonableness is a mandated federal requirement by the U.S. Department of Housing and Urban Development the make sure that rent is fair, reasonable, and comparable to units that are similar in the open market. This process is essential to the voucher program, which aims to prevent high rent charges and to ensure federal subsidies are used properly.

The voucher program entails:

• HUD requires HACLB pays rental rates appropriate for each neighborhood

• A tenant’s rate should be based upon a household paying 30% of their total income on rent, with HACLB paying the remainder of the rent due

• When a lease is executed, tenants may pay up to 40% of their income towards rent if they choose

• Rent approval is always subject to the usual Rent Reasonableness process and considers factors such as: location, size/layout, condition, amenities, and included utilities.

Rent reasonableness encourages ‘market fairness’ by maintaining an equal housing market by ensuring that properties leased to voucher holders similarly priced for unassisted units, thus creating a diversity of housing available to families regardless of income level. Compliance with HUD regulations is needed to continue to operate and fund the Housing Choice Voucher program.

The maximum allowable rent increase is 8.8% annually, effective July 1, 2023. It is the City of Long Beach’s position that HUD subsidies administered by the Housing Authority are not exempt from this law, thus, the Housing Authority will not process any rent increases beyond 8.8% of the current rent and will not accept any 90-day notices without cause.