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HUD/HUDSEC RIN: 2501-AD74 Publication ID: Fall 2016 
Title: Establishing a More Effective Fair Market Rent (FMR) System; Using Small Area Fair Market Rents (SAFMRs) in Housing Choice Voucher Program Instead of the Current 50th Percentile FMRs (FR-5855) 
Abstract:

Section 8(c)(1) of the United States Housing Act of 1937 (USHA) requires the Secretary to publish Fair Market Rents (FMRs) periodically, but not less than annually, adjusted to be effective on October 1 of each year.  Currently, HUD calculates FMRs based on the 40th percentile of the distribution of gross rents for standard quality units occupied by recent movers.  In some large metropolitan areas where voucher tenants are highly concentrated, however, HUD sets the FMRs at the 50th percentile to provide tenants with additional subsidy to expand the portion of the FMR area in which they can find suitable units.  HUD has determined that setting FMRs at the 50th percentile is not an effective tool for deconcentrating voucher tenants and is difficult to administer for areas moving in and out of 50th percentile status. HUD has instituted a Small Area FMR (SAFMR) demonstration as part of a court settlement to ascertain the efficacy of FMRs set at the ZIP Code level with metropolitan areas instead of metropolitan area-wide FMRs.  This rule removes the 50th percentile FMR rule and replace it with a SAFMR rule. To determine which voucher programs would operate under SAFMRs, HUD would couple a measure of voucher concentration in high poverty neighborhoods with a measure of the variation in rents across the metropolitan area to ensure that SAFMRs would be meaningfully enough different from available voucher program flexibilities to be an effective voucher deconcentration tool.

 
Agency: Department of Housing and Urban Development(HUD)  Priority: Economically Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Yes  Unfunded Mandates: No 
EO 13771 Designation: uncollected 
CFR Citation: 24 CFR 888   
Legal Authority: 42 U.S.C. 1437f    42 U.S.C. 3535(d)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
ANPRM  06/02/2015  80 FR 31332   
ANPRM Comment Period End  07/02/2015 
NPRM  06/16/2016  81 FR 39218   
NPRM Comment Period End  08/15/2016 
Final Action  12/00/2016 
Additional Information: Includes Retrospective Review under Executive Order 13563.
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Marie L. Lihn
Department of Housing and Urban Development
Office of the Secretary
451 7th Street SW.,
Washington, DC 20410
Phone:202 402-5866
Email: marie.l.lihn@hud.gov