HUD recently released its proposed fiscal year (FY) 2014 fair market rents (FMRs) for the Housing Choice Voucher (HCV) and Moderate Rehabilitation Single Room Occupancy programs. The primary uses of FMRs are to determine payment standards for the HCV program, to determine initial renewal rents for some expiring project-based Section 8 contracts, to determine initial rents for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy program, and to serve as rent ceilings in the HOME program. FMRs are also used in the calculation of maximum award amounts for Continuum of Care grantees.
The FY 2014 FMRs are based on 5-year, 2007–2011 data collected by the American Community Survey (ACS). These data are updated by one-year ACS data for areas where statistically valid one-year ACS data is available. The Consumer Price Index (CPI) rent and utility indexes are used to further update the data from 2011 to the end of 2012. HUD continues to use ACS data in different ways according to the statistical reliability of rent estimates for areas of different population sizes and counts of rental units.
The proposed FY 2014 FMRs reflect several updates to the methodology used to calculate FMRs, including updated FMRs in Puerto Rico, which are now based on 2007–2011 Puerto Rico Community Survey (PRCS) data (the PRCS is a part of the ACS program). In addition, HUD is using Consumer Price Index data calculated specifically for Puerto Rico rather than using South Census Region CPI data. Additionally, these FMRs continue to use the annually updated trend factor calculation methodology which is based on the change in national gross rents from 2006 to 2011.
Comments on the proposed FY 2014 FMRs are due Wednesday, September 4, 2013.