HUD Publishes FY 2015 Proposed Fair Market Rents
On August 15, 2014, the U.S. Department of Housing and Urban Development (HUD) published the Fiscal Year (FY) 2015 Proposed Fair Market Rents (FMR) in the Federal Register. By law, HUD is required to issue FMRs annually by October 1 and solicit public comments in advance of publishing the final FMRs, which are primarily used to determine payment standards for the Housing Choice Voucher (HCV) program, initial renewal rents for some expiring project-based Section 8 contracts and Mod-Rehab contracts, and to serve as rent ceilings in the HOME program.
The FY 2015 FMRs are based on five-year data collected by the American Community Survey (ACS) from 2008 to 2012. These data are updated by one-year ACS data for areas where statistically valid data is available. The Consumer Price Index (CPI) rent and utility indexes were used to further update the data from 2012 to the end of 2013.
On average, across all metropolitan and non-metropolitan areas, two-bedroom FMRs increased by less than three percent in 2015. However, individually there were some large swings in both directions. FMRs declined by more than five percent in 93 metro areas and 256 non-metropolitan areas. Some, but not all, of the larger declines occurred in small metro areas.
Interested persons are invited to submit comments regarding the proposed FMRs at www.regulations.gov by September 15, 2014.
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