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This interim rule supersedes a portion of the proposed rule HUD issued on January 6, 2015, which proposed multiple streamlining regulations and regulations conforming to statutory changes made by the FY2014 Appropriations Act, including changes to flat rents for public housing. The FY2015 Appropriations Act, through Section 238, made further changes to the public housing flat rents statute, and this interim rule addresses those changes and advises that this rule supersedes the changes proposed in the January 6, 2015, rule. In addition to the basic requirement that flat rents be set at no less than 80 percent of the applicable fair market rent (FMR), the statute and interim regulation allow public housing agencies (PHAs) to use no less than 80 percent of a FMR that is smaller than the otherwise-applicable FMR to better reflect market conditions or to petition for HUD for an exception to 80 percent FMR based on a market analysis of the relevant rental market.