The Executive Office of Housing and Livable Communities (HLC) is updating maximum allowable contract rents for Massachusetts Rental Voucher Program (MRVP) project-based vouchers (PBVs). The maximum allowable contract rent for PBVs is 100% area-wide Fair Market Rent (FMR), unless otherwise noted in an award letter and/or Voucher Payment Contract, subject to rent reasonableness. FMRs are determined annually by the United Stated Department of Housing and Urban Development (HUD). This applies both to the initial contract and rent increases.
Note that this guidance supersedes the MRVP Administrative Plan dated August 1, 2017. The guidance only applies to MRVP project-based vouchers.
Initial Rent Levels for PROJECT-BASED Vouchers
The contract rent for project-based vouchers is set by HLC at the time the initial Voucher Payment Contract is signed. Contract rents at initial occupancy shall not exceed 100% FMR, unless otherwise noted in the HLC award letter and/or Voucher Payment Contract. For all projects with an initial Voucher Payment Contract effective on or after September 15, 2026, the FY27 FMR shall be used.
PROJECT-BASED Rent Increases
For all rent increases effective on or after December 1, 2026, maximum allowable contract rent for PROJECT-BASED vouchers:
- May not exceed 100% of FY27 FMR;
- May not increase by more than 3%; and
- Must be rent reasonable.
FY27 FMRs can be found here. Maximum rents may be different if noted in an award letter from HLC and/or the Voucher Payment Contract.
For project-based units, contract rent increases are applied to an entire project at once. All contract rent increases must be requested from the housing agency by the owner. In order to verify that the MRVP PBVs rents requested are not more than comparable market-rate rents at the property, the request must include the HLC Rent Reasonableness Checklist and Certification Form or a similar form. For projects that have numerous kinds of units (various bedrooms sizes, differences in accessibility), the HLC Rent Reasonableness Checklist and Certification Form must be completed for each type of unit (for example, one form for each bedroom size).
Owners may request an increase at any time after the first year of the initial Voucher Payment Contract. Contract rent increases can only be approved once in any twelve (12) month period and not within the first year of the initial Voucher Payment Contract. Because contract rent increases are applied to an entire project at once, the contract rent may be increased during the first year of any individual participant’s lease.
In the case that HUD lowers FMR and the current contract rent for an MRVP project-based unit exceeds the new FMR, no rent increase shall be permitted. The contract rent for the unit will remain the same and does not need to be lowered. That is, if FMR decreases below the current contract rent, the contract rent does not need to be lowered.
Determining Rent Reasonableness
Contract rents must be reasonable. The housing agency may determine rent reasonableness through the Rent Reasonableness Checklist and Certification Form or may use a similar system. Rent reasonableness shall be determined by comparing the unit to other non-assisted units at the property, if any, and in the area. Amenities, unit size, unit quality, and included utilities can affect rent reasonableness. Rent reasonableness shall be determined in a fair and consistent manner and an owner may request documentation of why a rent was not approved.
The housing agency shall provide information on three similar unassisted units, either on the form or as an attachment. The housing agency will then approve none, some, or all of the rent increase requests based on whether the increase is rent reasonable. The housing agency shall notify the owner of its decision and, if requested, provide verification of rent reasonableness.
Note that any rent increase of more than 3% is not reasonable.
Rent Increase Procedures
If a contract rent increase is approved, the housing agency shall send an updated tenant rent share letter to the owner and participant. The housing agency must provide the owner and participant at least 30 days’ advance notice of the contract rent increase. Contract rents cannot be increased retroactively.
Applicability
This guidance supersedes the MRVP Administrative Plan dated August 1, 2017. The guidance only applies to MRVP project-based vouchers.