What 24 CFR 92.252 Sets as the HOME Program Rent Cap

If your building is described as “HOME-assisted,” the federal rule that caps rent on those units — 24 CFR 92.252 — sets a two-tier ceiling, not a single number: a High HOME rent and a Low HOME rent. The High HOME rent is the lesser of the local fair market rent or 30 percent of the adjusted income of a family earning 65 percent of the area median income (24 CFR 92.252). Both tiers cover rent plus utilities, not contract rent alone (24 CFR 92.252). This article explains only what the rule itself settles.

This original record-reading guide is a general reading aid, not cited evidence. It does not depict a source record; the article text and source links provide the facts.

Key points

• Two rent ceilings apply to HOME-assisted units — High HOME rent and Low HOME rent (24 CFR 92.252).
• The High HOME rent formula is set out below under “Calculating the High HOME rent” (24 CFR 92.252).
• The rent limit covers rent plus utilities or a utility allowance, not contract rent alone — see “What the cap covers” (24 CFR 92.252).
• In projects with five or more HOME-assisted units, at least 20 percent must be occupied by very low-income families (24 CFR 92.252).
• HUD’s rent-limit figures update on a schedule; FY 2026 figures took effect June 1, 2026 (HUD User HOME Rent Limits).

Calculating the High HOME rent

The regulation defines the High HOME rent as the lesser of two figures. The first is “the fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111” (24 CFR 92.252). The second is “30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD” (24 CFR 92.252). Whichever of these two figures is lower becomes the High HOME rent ceiling for that unit.

What the cap covers

The rent limit is not just the rent a lease states. As the rule specifies, “the rent limits apply to the rent plus the utilities or utility allowance” (24 CFR 92.252). That means the combined cost of rent and the utilities a tenant pays — or the utility allowance used in place of actual utility costs — must fit within the applicable ceiling.

The 20-percent occupancy requirement

Beyond the High HOME rent, the rule also requires a share of units in larger projects to be occupied by very low-income households. The regulation states: “In rental projects with five or more HOME-assisted rental units, at least 20 percent of the HOME-assisted units must be occupied by very low-income families” (24 CFR 92.252). This 20-percent occupancy requirement applies only once a project has five or more HOME-assisted units.

When these figures are current

The regulatory text in effect carries the citation “[90 FR 873, Jan. 6, 2025]” (24 CFR 92.252), marking the most recent Federal Register update to this section. Separately, HUD’s published rent-limit dataset notes: “Note: The FY 2026 HOME Rent Limits effective date is June 01, 2026” (HUD User HOME Rent Limits). The dollar figures HUD calculates under this formula change on that periodic schedule.

What this article does not answer

This article explains only what 24 CFR 92.252 itself sets as the rent-cap structure. It does not determine whether any particular reader’s unit is actually HOME-assisted, and it does not say which of the two tiers — High HOME rent or Low HOME rent — applies to a specific unit. It does not state the Low HOME rent formula or a dollar figure for either rent tier. It also does not state a dollar utility-allowance figure for any unit or public housing agency, and it does not address how long the affordability period lasts for a given HOME-assisted project. Nor does it address whether state or local rent regulation imposes additional or different limits on top of this federal rule. A renter needing any of these specific answers should ask the property owner, the administering public housing agency, or the state or local HOME participating jurisdiction.

Source links

https://www.ecfr.gov/current/title-24/subtitle-A/part-92/subpart-F/section-92.252 https://www.huduser.gov/portal/datasets/home-rent-limits.html