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HUD Adopts Small Area Fair Market Rents for Major Metropolitans

United States Federal Register
 

On November 16th, the U.S. Department of Housing and Urban Development (HUD) published its final rule providing for the use of Small Area Fair Market Rents (SAFMRs), on the basis of U.S. Postal ZIP codes, in the administration of the Housing Choice Voucher (HCV) program. This rule demonstrates a shift from the metropolitan-wide calculations currently used by public housing authorities (PHAs).

By shifting certain large metropolitans to using SAFMRs, HCV tenants are expected to gain access to cover rents in areas with lower poverty densities.  The current formula uses metropolitan-wide rental prices, which HUD believes has resulted in HCV tenants using their vouchers in areas where rents are low and poverty is high. This metropolitan-wide approach is problematic because in some metropolitan areas rental prices vary greatly from one neighborhood to the next.

According to HUD’s notice, the Hartford-West Hartford-East Hartford metropolitan FMR area is one of the areas subject to SAFMRs. This determination is based on the qualifying requirements of the new rule, as outlined in HUD’s notice.

The HUD notice can be found here

Click here to read more. 

 
 

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