Affordable Housing, Announcements, Community Development, Homelessness, Supportive Housing

New HUD Fair Market Rent Rule Seeks to Expand Housing Options

U.S. Department of Housing and Urban Development
 

The U.S. Department of Housing and Urban Development (HUD) newly proposed rule seeks to provide low-income vouchers recipient households living in high poverty concentrated areas access to housing in better neighborhoods. In the new rule, entitled Establishing a More Effective Fair Market Rent System; Using Small Area Fair Market Rents in Housing Choice Voucher Program Instead of the Current 50th Percentile FMRs,  HUD plans to recalculate Fair Market Rent (FMRs) at a zip code level versus a metropolitan area-wide level. This new method might help to create more housing opportunity in low poverty areas for voucher holders.

The Rule outlines criteria metropolitan FMR areas must meet to be eligible for the Small Areas FMRs.

The criteria are as follows:

  • At least 2,500 vouchers need to be under lease; 
  • 20% or more suitable housing units within the metropolitan FMR needs to be in Zip Codes where the Small Area FMR exceeds 110% of the metropolitan FMR;
  • The number of voucher holders living in high poverty areas compared to all renters within these areas is more than 155%. 

Harford-West-Hartford-East Hartford, CT Metropolitan is among 31 metropolitan areas that currently meet the required criteria.

Click here to read the proposed rule.
 

 
 

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