A business arrangement exists when the monthly required rent or flat fee payment equals
the CMRV of the residence.
Exception in the Second and Seventh circuits and Texas - In the States of Connecticut, New York, Vermont, Illinois, Indiana, Wisconsin, and
Texas, a business arrangement exists when the required rent or flat fee payment equals
or exceeds the applicable presumed maximum value (PMV). If the required rent or flat
fee payment is less than the PMV, the value of a subsidy is the difference between
the required rent or flat fee payment and the lesser of the PMV or the CMRV. For instructions
for processing cases in Texas, please see “Rental Subsidies for Residents of Texas
Effective May 1, 1996” SI DAL00835.380.