HUD Announces Proposed 2013 Fair Market Rents
HUD recently released its proposed fair market rents (FMRs) for fiscal year 2013. HUD uses the FMRs to determine payment standard amounts for several programs, include the Housing Choice Voucher and HOME programs.
The proposed FY 2013 FMRs in HUD’s notice reflect several updates to the methodology used to calculate FMRs. First, HUD has updated the bedroom ratios used to calculate 0, one-, three- and four-bedroom FMRs based on the two-bedroom FMR. The new bedroom ratios are constructed using 2006–2010 five-year American Community Survey (ACS) data.
Second, these FMRs reflect a new trend factor calculation methodology, which HUD stated would be implemented in its proposed FY 2012 FMR publication on Aug. 19, 2011. This trend factor is based on national gross rent data and will change annually.
To view the notice, click here. Comments are due on Sept. 4, 2012.