The Department of Housing and Urban Development (HUD) has released the FY17 proposed Fair Market Rents (FMR) for public comment. FMRs are used to determine payment standards for various HUD and state-funded programs, such as the federal Housing Choice Voucher (HCV) program. FMRs are meant to reflect the resources needed to pay rent (including utilities) in the private rental market. For most metro areas, HUD sets the FMRs at the estimated 40th percentile rent levels for the entire metro area. In FY17, Harford and 17 other metro areas across the country will have rents set at the 50th percentile.
Changes to the FMRs result in higher or lower payments to landlords. For voucher recipients, increases in the FMRs provide a wider range of housing choice, allowing them to access housing units with higher rents. Here is the breakdown for the proposed FMRs in Connecticut’s metro areas and how they compare to the FY16 FMRs:
- Bridgeport metro area: a 3% increase in the FMRs would bring the allowable rent for a 2-bedroom unit up to $1,243.
- Colchester-Lebanon area: FMRs would decrease by 4%, reducing the 2-bedroom FMR by $49 to $1,150.
- Danbury area: FMRs would decrease by 22%, with the 2-bedroom FMR decreasing by $398 to $1,377.
- The Harford-West Harford-East Hartford area: the FMRs would remain virtually the same with the 2-bedroom FMR set at $1,212.
- Litchfield County: FMRs would decrease by 2%, with the 2-bedroom FMR set at $1,095.
- The Milford-Ansonia-Seymour area: a 2% increase in FMRs would bring the 2-bedroom FMR up to $1,295.
- The New Haven-Meriden metro area: FMRs would increase by 5%, raising the 2-bedroom FMR by $65 to $1,325.
- Norwich-New London area: a 4% decrease in FMRs would reduce the 2-bedroom FMR to $1,077.
- Southern Middlesex County area: FMRs would increase by 3%, with the 2-bedroom FMR increasing by $43 to $1,367.
- The Stamford-Norwalk metro area: FMRs would increase by 1%, with the 2-bedroom FMR increasing by $26 to $1,958.
- Waterbury area: FMRs would increase by less than 1%, with the 2-bedroom FMR set at $994.
- Windham County: a 0.4% increase in FMRs would bring the 2-bedroom FMR up to $939.
The FY17 FMR’s are based on the 5-year, 2010-2014 American Community Survey (ACS) data. Comments are due by September 26, 2016.
Click here to access the notice in the Federal Register, which includes instructions on how to submit comments.
Click here to access the Proposed FY17 FMRs at the HUDUser website.