Preliminary Injunction Orders HUD to Proceed with Small Area Fair Market Rents
The U.S. District Court for the District of Columbia recently granted a preliminary injunction against HUD. The court ruled that that HUD didn’t have the authority or compelling reasons to suspend implementation of the use of Small Area Fair Market Rents (Small Area FMRs or SAFMRs) for two years in 23 metropolitan areas. SAFMRs reflect rents for U.S. Postal ZIP codes, while traditional fair market rents (FMRs) reflect a single rent standard for an entire metropolitan region.