The Housing Opportunity through Modernization Act (HOTMA) enacted in 2016 amends several aspects of Multifamily Housing Programs and its implementation has brought material changes that impact property owners and tenants, including income calculation, net family assets and income reviews. In this segment, we highlight one of the benefits at the property level. HOTMA impacts the economics of properties under housing assistance programs. In particular, the implementation of Small Area Fair Markt Rents (SAFMRs) under the Housing Choice Voucher (HCV) program. Rather than the historic standard of using the larger metro Fair Market Rents (FMRs), property owners can now use SAFMR, which reflects rental market conditions more accurately based on rents in specific zip codes. The flexibility to use FMR or SAFMR allows property owners under HCV programs to maximize property revenues to offset rising operating expenses. As such, in determining property-level rents for Section 8, HOME or rents under other HCV programs be sure to review both FMR and SAFMR to ensure you’re underwriting rents at a basis that is most beneficial to the long-term operations of the property. The new flexibility HOTMA has created allows for higher payment standards and allows property owners to invest in property that goes beyond standard capital improvements and repairs and reduce operating costs. Stay tuned for more HOTMA highlights.