Project-Based Section 8 properties have HUD-approved total unit rent levels known as “contract rents,” which are established under rules applicable at the time the original contract or renewal contract was executed. Subsequently, contract rents may be increased, usually annually, according to specific formulas, or on a budget basis, under provisions applicable to the specific subprogram involved. Contract rents reflect the maximum chargeable by the owner, with a portion paid by the tenant under the statutory formula and the remainder covered by the housing assistance payment from HUD.