Final FY 2014 FMRs Released

HUD has released the final FY14 Fair Market Rents (FMRs), following a period of public comments on the proposed FY14 FMRs (see Memo, 8/9). FMRs are used as the basis for determining payment standards in the Housing Choice Voucher (HCV) program and appropriate rents for project-based program. The final FY14 FMRs are effective as of October 1, 2013. Sixty-one percent of FMR areas will see an increase in two-bedroom FMRs from FY13 to FY14, with an average increase of $27. FMRs are lower in 38% of FMR areas, with an average decrease of $33. There are no changes in 16 FMR areas. The FMRs were modified in four areas since the release of the proposed FY14 FMRs. On August 15, 2013 HUD revised the FMRs for Carroll County, Missouri, Sioux County, Nebraska, and De Baca County, New Mexico: the FMR for a two-bedroom home in Carroll County went up $259 while it decreased in Sioux County and De Baca County by $3 and $36, respectively. The FMRs for Danbury, Connecticut were updated to incorporate the results of a survey that was not available for inclusion in the proposed FY14 FMRs. Based on the results of this survey, the FMR for a two-bedroom rental home increased from $1,308 to $1,576. There were 59 public comments regarding the proposed FY14 FMRs. The majority of the comments argued against specific decreases, suggesting that FMRs be held harmless and remain at the FY13 level or some earlier level if it would otherwise be lower, or changes be capped by a certain percent year-to-year. Some comments called for surveys to be conducted. In HUD’s response to these comments they explained that none of the comments requesting changes to FMRs provided statistically valid data to warrant such an action. HUD also wrote that it is statutorily required to use the most recent available data to determine FMR changes and thus caps and other limits cannot be incorporated into FMR methodology. Finally, HUD explained that surveys are expensive and it doesn’t anticipate having the funds to conduct any surveys in FY14.The notice for the final FY14 FMRs, the county level and small area files, and FY14 FMR Documentation are available at: http://bit.ly/aOU9v3