HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs
C. Section 236, Rent Supplement, and RAP Units
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
In some situations, owners may admit families with incomes that exceed the applicable program income limits to Section 236, Rent Supplement, or RAP units without HUD approval if there are no income-eligible applicants available and fewer than 10% of the units are already occupied by tenants paying market rent.
Any ineligible families that are admitted must pay market rent.
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