HUD Updates Fair Market Rents: Mean Narional Increase 12.2% for the upcoming fiscal year...latest update is on top of an approximately 10% increase in fiscal 2023

 

AFFORDABLE HOUSING FINANCE HUD Updates Fair Market Rents The national mean increase is 12.2% for the upcoming fiscal year. READ MORE

___________________________________________________________________________________

FAIR MARKET RENTS (40TH PERCENTILE RENTS)

Dataset/Fair Market Rents (40th PERCENTILE RENTS)

HUD’s Office of Policy Development and Research (PD&R) is pleased to announce that Fair Market Rents and Income Limits data are now available via an application programming interface (API). With this API, developers can easily access and customize Fair Market Rents and Income Limits data for use in existing applications or to create new applications. To create an account and get an access token, please visit the API page here: https://www.huduser.gov/portal/dataset/fmr-api.html.

Fair Market Rents (FMRs) are used to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts, to determine initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program (Mod Rehab), rent ceilings for rental units in both the HOME Investment Partnerships program and the Emergency Solution Grants program, calculation of maximum award amounts for Continuum of Care recipients and the maximum amount of rent a recipient may pay for property leased with Continuum of Care funds, and calculation of flat rents in Public Housing units. The U.S. Department of Housing and Urban Development (HUD) annually estimates FMRs for Office of Management and Budget (OMB) defined metropolitan areas, some HUD defined subdivisions of OMB metropolitan areas and each nonmetropolitan county. 42 USC 1437f requires FMRs be posted at least 30 days before they are effective and that they are effective at the start of the federal fiscal year (generally October 1). Fair Market Rents, as defined in 24 CFR 888.113 are estimates of 40th percentile gross rents for standard quality units within a metropolitan area or nonmetropolitan county.

Fair Market Rents: Overview (*.pptx, 1.66MB), (*.pdf, 706KB)

___________________________________________________________________________________

AFFORDABLE HOUSING FINANCE

HUD Updates Fair Market Rents

The national mean increase is 12.2% for the upcoming fiscal year.

Fair market rents (FMRs) for fiscal 2024 will increase an average of approximately 12% in fiscal 2024, increasing the number of units that families with housing vouchers can access, announced the Department of Housing and Urban Development (HUD).

"Increases in fair market rents help families find homes of their choosing in competitive housing markets,” said Solomon Greene, principal deputy assistant secretary for policy development and research at HUD. “This year, we are continuing improvements we made last year to how we calculate fair market rents to make sure they are keeping up with rising rents. We’ve already seen these improvements help more voucher holders find housing that is affordable, and we expect these new updates will help even more families."

HUD is required by law to set FMRs every year, which go into effect Oct. 1. 

• FMRs are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40% of the rental housing units in an area. 
• They are used in several HUD programs, including determining the maximum amount a Housing Choice Voucher will cover.

Many metro areas with significant rent increases recently will have large increases to FMRs—for example, 21% in Miami and 19% in Denver.

Click here to view the fiscal 2024 FMRs.

The latest update is on top of an approximately 10% increase in fiscal 2023.
In another move, HUD released an additional $113 million in Housing Choice Vouchers to 118 public housing agencies to help 9,500 families.
"Housing choice vouchers are some of the strongest tools we have to help families find stable and affordable housing," said HUD secretary Marcia L. Fudge. "This year, HUD found that rents rose once again, accentuating the strain on costs for American families. These updated Fair Market Rents and our funding will ensure households can utilize vouchers in a competitive rental market."