When determining payment standards, what size is taken into account?

The correct option focuses on the appropriate consideration for payment standards by taking into account both the family unit size and the size of the dwelling unit. This reflects the Housing Choice Voucher program's aim to ensure that families have access to housing that meets their needs without imposing unreasonable financial burdens on them or the housing authority.

By using the lower of the two sizes, the program ensures that families are assigned a payment standard that aligns with their actual housing needs while also adhering to the limits of what is reasonable for available housing. This approach promotes fairness and compliance with regulations, as it allows the payment standard to accommodate various household structures and the limitations often found in the housing market, where some units may not be available in sizes that perfectly match a family's composition.

Thus, this method serves to balance the needs of the family and the realities of the market, ensuring that vouchers do not facilitate a mismatch between the household size and the available housing options. This strategy helps to prevent instances of over-subsidization or potential waste of housing resources.