Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs; Fiscal Year 2025, 66127-66133 [2024-18002]
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the use of appropriate automated,
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technological collection techniques or
other forms of information technology,
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Millicent Brown Wilson,
Records Management Branch Chief, Office
of the Chief Administrative Officer, Mission
Support, Federal Emergency Management
Agency, Department of Homeland Security.
[FR Doc. 2024–18143 Filed 8–13–24; 8:45 am]
BILLING CODE 9111–19–P
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DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6479–N–01]
Fair Market Rents for the Housing
Choice Voucher Program, Moderate
Rehabilitation Single Room Occupancy
Program, and Other Programs; Fiscal
Year 2025
Office of the Assistant
Secretary for Policy Development and
Research, Department of Housing and
Urban Development, HUD.
ACTION: Notice of fiscal year (FY) 2025
Fair Market Rents (FMRs).
AGENCY:
Section 8(c)(1) of the United
States Housing Act of 1937 (USHA), as
amended by the Housing Opportunities
Through Modernization Act of 2016
(HOTMA), requires the Secretary to
publish FMRs not less than annually,
adjusted to be effective on October 1 of
each year. This notice describes the
methods used to calculate the FY 2025
FMRs and lists the procedures for
Public Housing Agencies (PHAs) to
request reevaluations of their FMRs as
required by HOTMA.
DATES:
Comment Due Date: October 1, 2024.
Implementation Date of Revised
FMRs: October 1, 2024, unless HUD
receives a valid request for reevaluation
of specific area FMRs as described
below.
SUMMARY:
HUD invites interested
persons to submit comments regarding
the FMRs and to request reevaluation of
the FY 2025 FMRs. Communications
must refer to the above docket number
and title and should contain the
information specified in the ‘‘Request
for Public Comments and FMR
Reevaluations’’ section. There are two
methods for submitting public
comments or reevaluation requests:
1. Electronic Submission of
Comments. Interested persons may
submit comments or reevaluation
requests electronically through the
Federal eRulemaking Portal at https://
www.regulations.gov. HUD strongly
encourages commenters to submit
comments or reevaluation requests
electronically. Electronic submission of
comments or reevaluation requests
allows the author maximum time to
prepare and submit a comment or
reevaluation request, ensures timely
receipt by HUD, and enables HUD to
make them immediately available to the
public. Comments submitted
electronically through the https://
www.regulations.gov website can be
viewed by other submitters and
interested members of the public.
ADDRESSES:
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Commenters or reevaluation requestors
should follow the instructions provided
on that site to submit comments or
reevaluation requests electronically.
2. Submission of Comments by Mail.
Members of the public may submit
comments or requests for reevaluation
by mail to the Regulations Division,
Office of General Counsel, Department
of Housing and Urban Development,
451 7th Street SW, Room 10276,
Washington, DC 20410–0500.
fmr.html, including in PDF and
Microsoft Excel. Small Area FMRs for
all metropolitan FMR areas and
nonmetropolitan areas are available in
Microsoft Excel format at: https://
www.huduser.gov/portal/datasets/fmr/
smallarea/. For informational
purposes, HUD also publishes 50th
percentile rents for all FMR areas at
https://www.huduser.gov/portal/
datasets/50per.html.
SUPPLEMENTARY INFORMATION:
Note: To receive consideration as public
comments or reevaluation requests,
comments or requests must be submitted
through one of the two methods specified
above. Again, all submissions must refer to
the docket number and title of the notice.
I. Background
Section 8 of the USHA (42 U.S.C.
1437f) authorizes housing assistance to
aid lower-income families in renting
safe and decent housing. Housing
assistance payments are limited by
FMRs established by HUD for different
geographic areas. In the Housing Choice
Voucher (HCV) program, the FMR is the
basis for determining the ‘‘payment
standard amount’’ used to calculate the
maximum monthly subsidy for an
assisted family. See 24 CFR 982.503.
HUD also uses the FMRs to determine
initial renewal rents for some expiring
project-based Section 8 contracts, initial
rents for housing assistance payment
contracts in the Moderate Rehabilitation
Single Room Occupancy program, rent
ceilings for rental units in both the
HOME Investment Partnerships program
and the Emergency Solution Grants
program, calculation of maximum
award amounts for Continuum of Care
recipients and the maximum amount of
rent a recipient may pay for property
leased with Continuum of Care funds,
and calculation of flat rents in Public
Housing units. The FMR is also used to
determine the Performance Based
Contract Administration Fee in
Multifamily Housing. In general, the
FMR for an area is the amount that a
tenant would need to pay the gross rent
(shelter rent plus utilities) of privately
owned, decent, and safe rental housing
of a modest (non-luxury) nature with
suitable amenities. HUD’s FMR
calculations represent HUD’s best effort
to estimate the 40th percentile gross rent
paid by recent movers into standard
quality units in each FMR area. In
addition, all rents subsidized under the
HCV program must meet reasonable rent
standards.
HUD’s methodology for calculation
FMRs is described in Section III. HUD
first adopted this methodology for the
calculation of FY 2024 FMRs, and it is
unchanged for FY 2025.
No Facsimile Comments or
Reevaluation Requests. HUD does not
accept facsimile (FAX) comments or
requests for FMR reevaluation.
FOR FURTHER INFORMATION CONTACT: For
technical information on the
methodology used to develop FMRs or
a listing of all FMRs, please call the
HUD USER information line at 800–
245–2691 or access the information on
the HUD USER website at https://
www.huduser.gov/portal/datasets/
fmr.html. HUD welcomes and is
prepared to receive calls from
individuals who are deaf or hard of
hearing, as well as from individuals
with speech or communication
disabilities. To learn more about how to
make an accessible telephone call,
please visit https://www.fcc.gov/
consumers/guides/telecommunicationsrelay-service-trs.
Questions related to the use of FMRs
or voucher payment standards should
be directed to the respective local HUD
program staff or the Office of Public and
Indian Housing Customer Service
Center at https://www.hud.gov/
program_offices/public_indian_
housing/about/css. Questions on how to
conduct FMR surveys may be addressed
to the electronic mailbox for the
Program Parameters and Research
Division at pprd@hud.gov.
Electronic Data Availability. This
Federal Register notice will be available
electronically from the HUD User page
at https://www.huduser.gov/portal/
datasets/fmr.html. Federal Register
notices also are available electronically
from https://www.federalregister.gov/,
the U.S. Government Publishing Office
website. Complete documentation of the
methods and data used to compute each
area’s FY 2025 FMRs is available at
https://www.huduser.gov/portal/
datasets/fmr.html#2025_query. FY 2025
FMRs are available in a variety of
electronic formats at https://
www.huduser.gov/portal/datasets/
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II. Publication of FMRs
Section 8(c)(1) of the USHA,1 as
amended by HOTMA (Pub. L. 114–201,
1 42
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enacted July 29, 2016), requires the
Secretary of HUD to publish FMRs not
less than annually. Section 8(c)(1)(A)
states that each FMR ‘‘shall be adjusted
to be effective on October 1 of each year
to reflect changes, based on the most
recent available data trended so the
rentals will be current for the year to
which they apply. . . .’’ Section
8(c)(1)(B) requires that HUD publish,
not less than annually, new FMRs on
the World Wide Web or in any other
manner specified by the Secretary, and
that HUD must also notify the public of
when it publishes FMRs by Federal
Register notice. After notification, the
FMRs ‘‘shall become effective no earlier
than 30 days after the date of such
publication,’’ and HUD must provide a
procedure for the public to comment
and request a reevaluation of the FMRs
in a jurisdiction before the FMRs
become effective. Consistent with the
statute, HUD is issuing this notice to
notify the public that FY 2025 FMRs are
available at https://www.huduser.gov/
portal/datasets/fmr.html and will
become effective on October 1, 2024.
This notice also provides procedures for
FMR reevaluation requests.
III. FMR Methodology
This section provides a brief overview
of how HUD computes the FY 2025
FMRs. For complete information on
how HUD derives each area’s FMRs, see
the online documentation at https://
www.huduser.gov/portal/datasets/
fmr.html#2025_query.
A. Geographic Area Definitions
The FY 2025 FMRs are based on the
updated metropolitan area definitions
published by the Office of Management
and Budget (OMB) on September 14,
2018 and first incorporated by the
Census Bureau into the 2019 American
Community Survey (ACS) data, and the
corresponding FY 2022 FMRs. On July
21, 2023, OMB published Bulletin No.
23–01 which contains revisions to
metropolitan area definitions. However,
the Census Bureau has not yet
incorporated these revisions into the
data available to HUD, and therefore
HUD is not using these new definitions
for FY 2025.
Pursuant to section 107(a) of HOTMA
(Pub. L. 114–201) for FY 2025, HUD is
adding Westchester County, NY to the
New York, NY HUD Metropolitan Fair
Market Rent Area. Westchester County,
NY will remain a separate median
family income and income limit area
pursuant to 42 U.S.C. 1437(b)(2)(D).
B. Base Year Rents
For FY 2025 FMRs, HUD uses the U.S.
Census Bureau’s 5-year ACS data
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collected between 2018 and 2022 as the
‘‘base rents’’ for the FMR calculations.
These data are the most current ACS
data available at the time that HUD
calculates the FY 2025 FMRs. HUD
pairs a ‘‘margin of error’’ test 2 with an
additional requirement based on the
number of survey observations
supporting the estimate to improve the
statistical reliability of the ACS data
used in the FMR calculations. The
Census Bureau does not provide HUD
with an exact count of the number of
observations supporting the ACS
estimate; rather, the Bureau provides
HUD with categories of the number of
survey responses underlying the
estimate, including whether the
estimate is based on more than 100
observations. Using these categories,
HUD requires that, in addition to
meeting the ‘‘margin of error’’ test, ACS
rent estimates must be based on at least
100 observations to be used as base
rents.
For areas in which the 5-year ACS
data for two-bedroom, standard quality
gross rents do not pass the statistical
reliability tests (i.e., have a margin of
error ratio greater than 50 percent or
fewer than 100 observations), HUD uses
an average of the base rents over the
three most recent years 3 (provided that
there is data available for at least two of
these years),4 or if such data are not
available, using the two-bedroom rent
data within the next largest geographic
area. For a metropolitan subarea, the
next largest area is its containing
metropolitan area. For a nonmetropolitan area, the next largest area
is the state non-metropolitan portion.
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C. Recent-Mover Factors
Following the assignment of the
standard quality two-bedroom rent
described above, HUD applies a recentmover factor to these rents. HUD
calculates the recent-mover factor as the
change between the 5-year 2018–2022
standard quality two-bedroom gross rent
and the 1-year 2022 recent mover gross
rent for the recent mover factor area.
HUD does not allow recent-mover
factors to lower the standard quality
base rent; therefore, if the 5-year
2 HUD’s margin of error test requires that the
margin of error of the ACS estimate is less than half
the size of the estimate itself.
3 For FY 2025, the three years of ACS data in
question are 2020, 2021 and 2022. HUD adjusts the
2020 and 2021 data to be denominated in 2022
dollars using the growth in Consumer Price Index
(CPI)-based gross rents measured between those
years and 2022.
4 To be used in the three-year average calculation,
the 5-year estimates must be minimally statistically
qualified; that is, the margin of error of the
estimates must be less than half the size of the
estimate.
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standard quality rent is larger than the
comparable 1-year recent mover rent,
HUD sets the recent-mover factor to 1.
When the recent-mover factor is greater
than one and calculated for the same
geographic area as the base rent, HUD is,
in effect, replacing the base rent with
the recent-mover rent for that area.
In determining the recent mover
factor, HUD first considers the rents of
households who moved into their unit
only in the current ACS year. For ACS
2022, this means that the maximum
length of time for a household to have
lived in its current unit and still be
considered a recent mover under this
definition would be 11 months. HUD
applies the same two statistical
reliability checks to each ACS recent
mover estimate as it does for the base
rent estimate. First, the estimate must be
supported by at least 100 sample cases
from the ACS. Second, the estimate
must have a margin of error that is
smaller than half the estimate itself.
HUD first considers the estimate for
two-bedroom units, then for units of all
bedroom sizes. For areas without an
ACS estimate meeting these criteria,
HUD next checks the estimate tabulated
from two-year recent movers. If the local
two-year recent mover estimates are not
reliable, HUD considers the estimates
for increasingly larger areas of
geography.
D. Other Rent Survey Data
HUD calculates base rents for the
insular areas using data collected during
the 2010 decennial census of American
Samoa, the Northern Mariana Islands,
and the Virgin Islands beginning with
the FY 2016 FMRs.5 HUD updates the
2010 base year data to 2022 using the
growth in national ACS data for the FY
2025 FMRs. Note that while the 2010
decennial census also included Guam,
HUD uses the result of a more recent
rent survey in calculating the FMRs for
Guam, as discussed in the following
paragraph. HUD is working with the
Census Bureau to provide special
tabulations of the 2020 Island Area
Census and hopes to include these data
in FY 2026 FMRs.
HUD does not use ACS data to
establish the base rent or recent-mover
factor in cases where it has locally
collected survey data which are more
recent than the 2022 ACS. For larger
metropolitan areas that have valid ACS
one-year recent-mover data, survey data
5 The ACS is not conducted in the Pacific Islands
(Guam, Northern Mariana Islands and American
Samoa) or the US Virgin Islands. As part of the 2010
Decennial Census, the Census Bureau conducted
‘‘long-form’’ sample surveys for these areas. HUD
uses the results gathered by this long form survey
for the FY 2025 FMRs.
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may not be any older than the mid-point
of the calendar year for the ACS oneyear data. Since the ACS one-year data
used for the FY 2025 FMRs is from
2022, larger areas with valid one-year
recent mover data may not use other
survey data collected before June 30,
2022 for the FY 2025 FMRs. Areas
without statistically reliable 1-year ACS
data may continue to use local survey
data until the mid-point of the 5-year
ACS data is more recent than the local
survey. For FY 2025 FMRs, the
following are Metropolitan Statistical
Areas (MSAs), HUD Metro FMR Areas,
or non-metropolitan counties that have
FMRs based on local ad hoc surveys:
(1) HUD uses survey data from 2019
to calculate the FMRs for Guam.
(2) HUD uses survey data from 2021
to calculate the FMRs for Iron County,
UT; Knox County, ME; Lincoln County,
ME; Transylvania County, NC; and
Waldo County, ME.
(3) HUD uses survey data from 2022
to calculate the FMRs for Grand RapidsWyoming, MI HUD Metro FMR Area;
Hawaii County, HI; Hood River County,
OR; Salinas, CA MSA; Seattle-Bellevue,
WA HUD Metro FMR Area; and Wasco
County, OR.
(4) HUD uses survey data from 2023
to calculate the FMRs for San Benito
County, CA HUD Metro FMR Area;
Santa Cruz-Watsonville, CA MSA; and
Urban Honolulu, HI MSA.
E. Gross Rent Inflation Adjustment
Factors
The ACS recent mover rent estimates
as described above produce a rent value
that is ‘‘as of’’ 2022. To account for
inflation, HUD adjusts this value using
an inflation factor that captures rent
growth from 2022 to 2023. HUD uses a
local measure of private rent inflation
for markets that are covered by at least
three of the six available sources of
private rent data. HUD combines this
local measure of rent inflation with
either the local metropolitan area CPI
rent of primary residence for the 23
areas where such data exist, or the
regional CPI rent in areas without a
local index.
HUD uses both private data and the
CPI in an attempt to fully and accurately
measure recent mover rent inflation.
Research has shown that private data
often provide a timelier measure of
recent mover rent inflation than the CPI,
which is constructed by measuring the
rents of both in-place and new tenants.
However, the CPI provides other
advantages as a measure of rent
inflation, such as consisting of a
representative sample of all housing
units, measuring rent in the same units
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over time (a ‘‘repeat rent’’ sample), and
adjusting for the aging of units.
The private measures of rent used by
HUD are the ApartmentList Rent
Estimate, CoStar Group average effective
rent, CoreLogic, Inc., single-family
combined 3-bedroom median rent,
Moody’s Analytics REIS average market
rent, RealPage average effective rent per
unit, and Zillow Observed Rent Index.
In calculating a measure of inflation
from these data, HUD first takes the
annual average of each statistic, then its
year-to-year change. HUD then takes the
mean of the changes from all available
sources for each area.
Next, HUD takes an average of this
private-sector measure of rent inflation
with rent inflation as captured by the
CPI for the area, where the privatesector measure is weighted at
approximately 75 percent and the CPI
rent inflation measure is weighted at
approximately 25 percent. HUD has
determined and updated these weights
by comparing the national average of the
private rent changes and changes in CPI
rent of primary residence to changes in
the national average of recent mover
rents from the ACS from 2018 through
2022. HUD weights the private data
averages and overall CPI rent of primary
residence in such a way as to minimize
the root mean squared error between the
resulting average and the ACS recent
mover rents. For future FMRs, HUD will
continue update the weights by adding
the most recent years of ACS recent
mover rents, private rent data, and CPI
rent of primary residence to the
analysis.
For areas without at least three of the
six private rent data sources available,
HUD uses a regional average of private
rent inflation factors alongside the
regional CPI rent of primary residence
using the nationally derived weights
described above. HUD constructs the
regional average by taking the rental
unit weighted average of the change in
rents of each area in a region that does
have private rent data coverage. This
ensures that smaller areas which are not
covered by the private sources directly
still have current rental market
conditions taken into account in the
calculation of the rent inflation factor
for such areas.
Finally, HUD averages the result of
this step with the year-to-year change in
the CPI housing fuels and utilities index
for the area in order to make the
resulting inflation measure reflective of
gross rents. The results of this step are
gross rent estimates that are ‘‘as of’’
2023.
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F. Trend Factor Forecasts
Following the application of the
appropriate gross rent inflation factor,
HUD trends the gross rent estimate from
2023 to FY 2025 using a trend factor
which is based on local or regional
forecasts of CPI gross rent data. HUD
derived a trend factor for each Class A
CPI area and Class B/C CPI region using
time series models based on national
inputs (National Input Model or NIM),
local inputs (Local Input Model or LIM),
and historical values of the predicted
series (Pure Time Series—PTS). HUD
chose the actual model used for each
CPI area’s trend factor based on which
model generates the lowest Root Mean
Square Error (RMSE) statistic and
applied the trend factors to the
corresponding FMR areas. HUD
established the type of model for each
forecast (NIM, LIM, or PTS) for the FY
2020 FMRs. HUD had previously stated
it would reassess the model selections
during the calculation of the FY 2025
FMRs. However, due to the high degree
of volatility that occurred in rental
markets from 2020–2023, HUD believes
that evaluating model performance
during this period will not result in the
best long term model selection. More
details on the trend factor forecasts are
available in the June 5, 2019 Federal
Register notice (84 FR 26141) and are
available at https://
www.federalregister.gov/documents/
2019/06/05/2019-11763/proposedchanges-to-the-methodology-used-forestimating-fair-market-rents.
G. Bedroom Rent Adjustments
HUD uses two-bedroom units for its
primary calculation of FMR estimates.
This is generally the most common size
of rental unit and, therefore, the most
reliable to survey and analyze. After
estimating two-bedroom FMRs, HUD
calculates bedroom ratios for each FMR
area, which relate the prices of smaller
and larger units to the cost of twobedroom units. The bedroom ratios
HUD uses in the calculation of FY 2025
FMRs are calculated from three five-year
ACS data series (2016–2020, 2017–2021,
and 2018–2022). HUD only uses
estimates with a margin of error ratio of
less than 50 percent. If an area does not
have reliable estimates in at least two of
the previous three ACS releases, HUD
uses the bedroom ratios for the area’s
larger parent geography.
To ensure an adequate distributional
fit in these bedroom ratio calculations
for individual FMR areas, HUD
establishes bedroom interval ranges
which set upper and lower limits for
bedroom ratios nationwide, based on an
analysis of the range of such intervals
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for all areas with large enough samples
to permit accurate bedroom ratio
determinations. In the calculation of FY
2025 FMR estimates, HUD sets the
bedroom interval ranges as follows:
efficiency FMRs are constrained to fall
between 0.69 and 0.87 of the twobedroom FMR; one-bedroom FMRs must
be between 0.76 and 0.90 of the twobedroom FMR; three-bedroom FMRs
(prior to the adjustments described
below) must be between 1.11 and 1.29
of the two-bedroom FMR; and fourbedroom FMRs (again, prior to
adjustment) must be between 1.23 and
1.56 of the two-bedroom FMR. Given
that these interval ranges partially
overlap across unit bedroom counts,
HUD further adjusts bedroom ratios for
a given FMR area, if necessary, to ensure
that higher bedroom-count units have
higher rents than lower bedroom-count
units within that area.
HUD further adjusts the rents for
three-bedroom and larger units to reflect
HUD’s policy to set higher rents for
these units.6 This adjustment is
intended to increase the likelihood that
the largest families, who have the most
difficulty in leasing units, will be
successful in finding eligible program
units. The adjustment adds 8.7 percent
to the unadjusted three-bedroom FMR
estimates and adds 7.7 percent to the
unadjusted four-bedroom FMR
estimates.
HUD derives FMRs for units with
more than four bedrooms by adding 15
percent to the four-bedroom FMR for
each extra bedroom. For example, the
FMR for a five-bedroom unit is 1.15
times the four-bedroom FMR, and the
FMR for a six-bedroom unit is 1.30
times the four-bedroom FMR. Similarly,
HUD derives FMRs for single-room
occupancy units by subtracting 25
percent from the zero-bedroom FMR
(i.e., they are set at 0.75 times the zerobedroom (efficiency) FMR).7
H. Minimum FMRs
All FMRs are subject to a minimum
rent based on state or national nonmetropolitan area median rent. HUD
calculates a population-weighted
median two-bedroom FMR across all
non-metropolitan counties or countyequivalents of each state, which, for the
purposes of FMRs, is the state minimum
6 As mentioned above, HUD applies the interval
ranges for the three-bedroom and four-bedroom
FMR ratios prior to making these adjustments. In
other words, the adjusted three- and four-bedroom
FMRs can exceed the interval ranges but the
unadjusted FMRs cannot.
7 As established in the interim rules
implementing the provisions of the Quality Housing
and Work Responsibility Act of 1998 (Title V of the
FY 1999 HUD Appropriations Act; Pub. L. 105–276)
in 24 CFR 982.604.
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rent. State-minimum rents for each FMR
area are available in the FY 2025 FMR
Documentation System, available at
https://www.huduser.gov/portal/
datasets/fmr.html#2025_query. HUD
also calculates the population weighted
median FMR rent across all nonmetropolitan areas of the country,
which, for the purposes of FMRs, is the
national non-metropolitan rent. For FY
2025, the national non-metropolitan
rent is $933. The applicable minimum
rent for a particular area is the lower of
the state or national non-metropolitan
median. Each area’s two-bedroom FMR
must be no less than the applicable
minimum rent.
percent of the FY 2024 Small Area
FMRs. For newly designated mandatory
Small Area FMR areas under the
October 23, 2023 notice ‘‘Small Area
Fair Market Rents in the Housing Choice
Voucher Program—Metropolitan Areas
Subject to Small Area Fair Market
Rents’’, the FY 2025 Small Area FMRs
may be no less than 90 percent of the
greater of the FY 2024 metropolitan area
wide FMRs or the applicable FY 2024
Small Area FMR, as Small Area FMRs
were not yet in effect for these areas in
FY 2024. For all other metropolitan
areas, the FY 2025 Small Area FMRs
may be no less than 90 percent of the
greater of the FY 2024 metropolitan area
wide FMRs or the applicable FY 2024
Small Area FMR. The following table
demonstrates these scenarios:
Type of area
FY 2025 ‘‘floor’’ for small area FMRs
Areas where the use of Small Area FMRs was
mandatory prior to FY 2025, or have optionally used Small Area FMRs before FY 2025.
Areas where the use of Small Area FMRs is
mandatory as of FY 2025 or optionally begin
to use Small Area FMRs in FY 2025.
All other areas ....................................................
90 percent of FY 2024 Small Area FMRs .......
90 percent of FY 2025 Small Area FMRs.
Higher of 90 percent of FY 2024 Small Area
FMRs and 90 percent of FY 2024 Metropolitan FMRs.
Higher of 90 percent of FY 2024 Small Area
FMRs and 90 percent of FY 2024 Metropolitan FMRs.
90 percent of FY 2025 Small Area FMRs.
PHAs operating in areas where the
calculated FMR is lower than the
published FMR (i.e., those areas where
HUD has limited the decrease in the
annual change in the FMR to 10
percent) may request payment standards
below the basic range (24 CFR
982.503(d)) and reference the
‘‘unfloored’’ rents (i.e., the unfinalized
FMRs calculated by HUD prior to
application of the 10-percent-decrease
limit) depicted in the FY 2025 FMR
Documentation System (available at:
https://www.huduser.gov/portal/
datasets/fmr.html#2025_query).
IV. Small Area FMRs
A. SAFMR Mandatory Use
ddrumheller on DSK120RN23PROD with NOTICES1
I. Limit on FMR Decreases
HUD’s regulations at 24 CFR 888.113
include a limit on the amount that
FMRs may annually decrease. The
current year’s FMRs resulting from the
application of the bedroom ratios, as
discussed in section (E) above, may be
no less than 90 percent of the prior
year’s FMRs for units with the same
number of bedrooms. Accordingly, if the
current year’s FMRs are less than 90
percent of the prior year’s FMRs as
calculated by the above methodology,
HUD sets the current year’s FMRs equal
to 90 percent of the prior year’s FMRs.
For areas where HUD has required the
use of Small Area FMRs in the
administration of their voucher
programs since 2018, the FY 2025 Small
Area FMRs may be no less than 90
66131
HUD lists Small Area FMRs for all
areas in the Small Area FMR Schedule.
PHAs operating in areas where the use
of Small Area FMRs is not mandated
should notify HUD of their use of Small
Area FMRs in the operation of their
Housing Choice Voucher program.
On October 25, 2023, HUD published
the notice ‘‘Small Area Fair Market
Rents in the Housing Choice Voucher
Program—Metropolitan Areas Subject to
Small Area Fair Market Rents’’, which
requires 41 additional metropolitan
areas to use Small Area Fair Market
Rents in the administration of the
Housing Choice Voucher program
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Jkt 262001
beginning in FY 2025.8 These areas are
as follows:
Akron, OH MSA
Augusta-Richmond County, GA-SC HUD
Metro FMR Area
Beaumont-Port Arthur, TX MSA
Birmingham-Hoover, AL HUD Metro FMR
Area
Buffalo-Cheektowaga-Niagara Falls, NY MSA
Charleston-North Charleston, SC MSA
Chattanooga, TN-GA MSA
Cincinnati, OH-KY-IN HUD Metro FMR Area
Cleveland-Elyria, OH MSA
Columbus, OH HUD Metro FMR Area
Dayton-Kettering, OH MSA
Des Moines-West Des Moines, IA HUD Metro
FMR Area
Detroit-Warren-Livonia, MI HUD Metro FMR
Area
Fort Wayne, IN MSA
Greensboro-High Point, NC HUD Metro FMR
Area
Harrisburg-Carlisle, PA MSA
Indianapolis-Carmel, IN HUD Metro FMR
Area
Jersey City, NJ HUD Metro FMR Area
Kansas City, MO-KS HUD Metro FMR Area
Knoxville, TN HUD Metro FMR Area
Los Angeles-Long Beach-Glendale, CA HUD
Metro FMR Area
Louisville, KY-IN HUD Metro FMR Area
Memphis, TN-MS-AR HUD Metro FMR Area
Miami-Miami Beach-Kendall, FL HUD Metro
FMR Area
Mobile, AL HUD Metro FMR Area
8 88 FR 73352, available at: https://
www.huduser.gov/portal/sites/default/files/pdf/
federal-register-notice-2023.pdf.
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FY 2026 ‘‘floor’’ for small area FMRs
Higher of 90 percent of FY 2025 Small Area
FMRs and 90 percent of FY 2025 Metropolitan FMRs.
Montgomery, AL MSA
Nashville-Davidson-Murfreesboro-Franklin,
TN HUD Metro FMR Area
Oklahoma City, OK HUD Metro FMR Area
Omaha-Council Bluffs, NE-IA HUD Metro
FMR Area
Orlando-Kissimmee-Sanford, FL MSA
Oxnard-Thousand Oaks-Ventura, CA MSA
Phoenix-Mesa-Scottsdale, AZ MSA
Raleigh, NC MSA
San Jose-Sunnyvale-Santa Clara, CA HUD
Metro FMR Area
Seattle-Bellevue, WA HUD Metro FMR Area
St. Louis, MO-IL HUD Metro FMR Area
Tucson, AZ MSA
Tulsa, OK HUD Metro FMR Area
Virginia Beach-Norfolk-Newport News, VANC HUD Metro FMR Area
Wichita, KS HUD Metro FMR Area
Winston-Salem, NC HUD Metro FMR Area
B. SAFMR Methodology
Newly for FY 2025, HUD has
calculated SAFMRs for both
metropolitan and non-metropolitan
areas. The methodology for calculating
SAFMRs is as follows:
First, HUD calculates Small Area
FMRs directly from the standard quality
gross rents provided to HUD by the
Census Bureau for ZIP Code Tabulation
Areas (ZCTAs) when such data are
statistically reliable. The ZCTA twobedroom equivalent 40th percentile
gross rent is analogous to the standard
quality base rents set for metropolitan
areas and non-metropolitan counties.
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Federal Register / Vol. 89, No. 157 / Wednesday, August 14, 2024 / Notices
For each ZCTA with statistically reliable
gross rent estimates, using the expanded
test of statistical reliability first used in
FY 2018 (i.e., estimates with margins of
error ratios below 50 percent and based
on at least 100 observations), HUD
calculates a two-bedroom equivalent
40th percentile gross rent using the first
statistically reliable gross rent
distribution data from the following
data sets (in this order): two-bedroom
gross rents, one-bedroom gross rents,
and three-bedroom gross rents. If either
the one-bedroom or three-bedroom gross
rent data are used because the twobedroom gross rent data are not
statistically reliable, HUD converts the
one-bedroom or three-bedroom 40th
percentile gross rent to a two-bedroom
equivalent rent using the bedroom ratios
for the ZCTA’s parent metropolitan or
non-metropolitan area. To increase
stability to these Small Area FMR
estimates, HUD averages the latest three
years of gross rent estimates.9
For ZCTAs without usable gross rent
data by bedroom count, HUD calculates
Small Area FMRs using the rent ratio
method. To calculate Small Area FMRs
using a rent ratio, HUD divides the
median gross rent across all bedrooms
for the ZCTA by the similar median
gross rent for the metropolitan or nonmetropolitan area of the ZCTA. If a
ZCTA does not have reliable rent data
at the all-bedroom level, HUD will then
check to see if the ZCTA borders other
ZCTAs that themselves have reliable
rent data. If at least half of a ZCTA’s
‘‘neighbors’’ have such data, HUD will
use the weighted average of those
estimates as the basis for the Small Area
FMR rather than a county proxy, where
the weight is the length of the shared
boundary between the ZCTA and its
neighbor. In small areas where the
neighboring ZCTA median gross rents
are not statistically reliable, HUD
substitutes the median gross rent for the
county containing the ZIP code in the
numerator of the rent ratio calculation.
HUD multiplies this rent ratio by the
current two-bedroom FMR for the
metropolitan or non-metropolitan area
containing the small area to generate the
current year two-bedroom FMR for the
small area.
HUD continues to use a rolling
average of ACS data in calculating the
Small Area FMR rent ratios. HUD
believes coupling the most current data
with previous year’s data minimizes
excessive year-to-year variability in
9 For example, for FY 2025 Small Area FMRs,
HUD averages the gross rents from 2020, 2021, and
2022 5-Year ACS estimates. The 2020 and 2021
gross rent estimates would be adjusted to 2022
dollars using the metropolitan area’s gross rent CPI
adjustment factors.
VerDate Sep<11>2014
18:22 Aug 13, 2024
Jkt 262001
Small Area FMR rent ratios due to
sampling variance. Therefore, for FY
2025 Small Area FMRs, HUD has
updated the rent ratios to use an average
of the rent ratios calculated from the
2016–2020, 2017–2021, and 2018–2022
5-year ACS estimates.
HUD limits each two-bedroom Small
Area FMR to be no more than 150
percent of the two-bedroom FMR for the
metropolitan or non-metropolitan area
where the ZIP code is located.
V. Request for Public Comments and
FMR Reevaluations
HUD accepts public comments on the
methods HUD uses to calculate FY 2025
FMRs and requests for reevaluation of
FMRs for specific areas for 30 days after
the publication of this notice. HUD
lacks the resources to conduct local
surveys of rents to address comments
filed regarding the FMR levels for
specific areas. PHAs may continue to
fund such surveys independently, as
specified below, using ongoing
administrative fees or their
administrative fee reserve if they so
choose. HUD continually strives to
calculate FMRs that meet the statutory
requirement of using ‘‘the most recent
available data’’ while also serving as an
effective program parameter.
A. FMR Reevaluations
42 U.S.C. 1437f(c)(1)(B) includes the
following: ‘‘The Secretary shall establish
a procedure for public housing agencies
and other interested parties to comment
on such fair market rentals and to
request, within a time specified by the
Secretary, reevaluation of the fair
market rentals in a jurisdiction before
such rentals become effective.’’
PHAs or other parties interested in
requesting HUD’s reevaluation of their
area’s FY 2025 FMRs, as provided for
under section 8(c)(1)(B) of USHA, must
follow the following procedures:
(1) By the end of the 30-day comment
period, PHAs or other parties must
submit reevaluation requests through
https://www.regulations.gov/ or directly
to HUD as described in the ADDRESSES
section above. The area’s PHA or, in
multi-jurisdictional areas, PHA(s)
representing at least half of the voucher
tenants in the FMR area, must agree that
the reevaluation is necessary.
(2) The requestor(s) must supply HUD
with data more recent than the 2022
ACS data used in the calculation of the
FY 2025 FMRs. HUD requires data on
gross rents paid in the FMR area for
occupied standard quality rental
housing units. Occupied recent mover
units (defined as those who moved in
the past 24 months, although a shorter
definition may also be used at the
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Fmt 4703
Sfmt 4703
requestor’s discretion) provide the best
data. The data delivered must be
sufficient for HUD to calculate a 40th
percentile two-bedroom gross rent.
Should this type of data not be
available, requestors may gather this
information using the survey guidance
available at https://www.huduser.gov/
portal/datasets/fmr/NoteRevised
AreaSurveyProcedures.pdf and https://
www.huduser.gov/portal/datasets/fmr/
PrinciplesforPHA-ConductedArea
RentSurveys.pdf.
(3) Areas where valid reevaluation
requests are submitted may continue to
use FY 2024 FMRs, or may use the FY
2025 FMRs. Commenters should
indicate whether they wish to maintain
the FY 2024 or implement the FY 2025
FMR during the revaluation period as
part of their reevaluation request. PHAs
requesting reevaluation in areas newly
designated as SAFMR areas must adopt
SAFMRs, but they may be the FY 2024
SAFMRs or FY 2025 SAFMRs during
the reevaluation period. Following the
comment period, HUD will post a list,
at https://www.huduser.gov/portal/
datasets/fmr.html, of the areas
requesting reevaluations where FY 2024
FMRs remain in effect.
(4) PHAs or other parties must supply
data for reevaluations to HUD no later
than Friday, January 10, 2025. All
survey responses of rental units
gathered as part of the survey efforts
should be delivered to HUD via email.
New for FY 2025, HUD requests that
survey responses include the ZIP Code
or comparable small-area identifier
(such as Census tract) of the housing
unit. In addition to the survey data,
HUD requires a current utility schedule
to evaluate the survey responses.
Finally, HUD encourages PHAs to
evaluate their survey data to ensure the
survey supports their request. Should
PHAs or their contractors undertake this
evaluation, HUD requests that this
analysis also be submitted.
HUD will use the data delivered by
January 10, 2025 to reevaluate the FMRs
and following the reevaluation, HUD
will post revised FMRs in April of 2025
with an accompanying Federal Register
notice stating the revised FMRs are
available, which will include HUD’s
responses to comments filed during the
comment period for this notice. By
January 17, 2025, HUD will post at
https://www.huduser.gov/portal/
datasets/fmr.html a listing of the areas
that requested FMR reevaluations and
continued effect of the FY2024 FMRs,
but did not deliver data, making the FY
2025 FMRs effective in these areas. HUD
will incorporate any data supporting a
change in FMRs supplied after January
10, 2025 into the FY 2026 FMRs.
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Federal Register / Vol. 89, No. 157 / Wednesday, August 14, 2024 / Notices
Questions on how to conduct FMR
surveys may be addressed to the
Program Parameters and Research
Division at pprd@hud.gov.
For small metropolitan areas without
one-year ACS data and nonmetropolitan counties, HUD has
developed a method of using mail
surveys that is discussed on the FMR
web page: https://www.huduser.gov/
portal/datasets/fmr.html#survey_info.
This method allows for the a PHA to
submit a valid survey consisting of as
few as 100 one-bedroom, two-bedroom,
and three-bedroom units.
Other survey methods are acceptable
in providing data to support
reevaluation requests if the survey
method can provide statistically
reliable, unbiased estimates of gross
rents paid throughout the entire FMR
area. In general, recommendations for
FMR changes and supporting data must
reflect the rent levels that exist within
the entire FMR area and should be
statistically reliable.
PHAs in non-metropolitan areas are
required to get 100 eligible survey
responses which means they should
have at least 5,000 rental units, taking
in to account survey non-response rates
and the fact that some units will fail to
qualify. PHAs may conduct surveys of
groups of non-metropolitan counties to
increase the number of rental units that
are surveyed, but HUD must approve all
county-grouped surveys in advance.
HUD cautions that the resulting FMRs
may not be identical for the counties
surveyed; each individual FMR area
will have a separate FMR based on the
relationship of rents in that area to the
combined rents in the cluster of FMR
areas. In addition, HUD advises that in
counties where FMRs are based on the
combined rents in the cluster of FMR
areas, HUD will not revise their FMRs
unless the grouped survey results show
a revised FMR statistically different
from the combined rent level.
Survey samples should preferably be
randomly drawn from a complete list of
rental units for the FMR area. If this is
not feasible, the selected sample must
be drawn to be statistically
representative of the entire rental
housing stock of the FMR area. Surveys
must include units at all rent levels and
be representative by structure type
(including single-family, duplex, and
other small rental properties), age of
housing unit, and geographic location.
The current 5-year ACS data should be
used as a means of verifying if a sample
is representative of the FMR area’s
rental housing stock. HUD staff are
available to work with PHAs in areas
requesting re-evaluations to provide the
minimum number of survey cases
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18:22 Aug 13, 2024
Jkt 262001
required to ensure that data submitted
for re-evaluation represent a statistically
valid sample. In cases where a
submitted sample is not representative,
HUD may attempt to weight the sample
cases prior to calculating 40th percentile
rent estimates.
A PHA or contractor that cannot
obtain the recommended number of
sample responses after reasonable
efforts should consult with HUD before
abandoning its survey; in such
situations, HUD may find it appropriate
to relax normal sample size
requirements, but in no case will fewer
than 100 eligible cases be considered.
VI. Environmental Impact
This notice involves the
establishment of FMR schedules, which
do not constitute a development
decision affecting the physical
condition of specific project areas or
building sites. Accordingly, under 24
CFR 50.19(c)(6), this notice is
categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
Accordingly, the Fair Market Rent
Schedules, which will not be codified in
24 CFR part 888, are available at https://
www.huduser.gov/portal/datasets/
fmr.html.
Solomon Greene,
Principal Deputy Assistant Secretary for
Policy Development and Research.
Fair Market Rents for the Housing
Choice Voucher Program
Schedule B—General Explanatory
Notes
Arrangement of FMR Areas and
Identification of Constituent Parts
a. The Metropolitan and NonMetropolitan FMR Area Schedule lists
FMRs alphabetically by state, by
metropolitan area and by nonmetropolitan county within each state
and are available at https://
www.huduser.gov/portal/datasets/
fmr.html.
b. The schedule lists the constituent
counties (and New England towns and
cities) included in each metropolitan
FMR area immediately following the
listings of the FMR dollar amounts. All
constituent parts of a metropolitan FMR
area that are in more than one state can
be identified by consulting the listings
for each applicable state.
c. The schedule lists two nonmetropolitan counties alphabetically on
each line of the non-metropolitan
county listings.
d. Similarly, the schedule lists the
New England towns and cities included
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66133
in a non-metropolitan county
immediately following the county name.
[FR Doc. 2024–18002 Filed 8–13–24; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
[Docket No. FWS–HQ–NWRS–2024–0094;
FXRS12630900000–245–FF09R81000; OMB
Control Number 1018–0102]
Agency Information Collection
Activities; National Wildlife Refuge
Special Use Permit Applications and
Reports
Fish and Wildlife Service,
Interior.
ACTION: Notice of information collection;
request for comment.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995, we,
the U.S. Fish and Wildlife Service
(Service), are proposing to revise an
existing collection of information.
DATES: Interested persons are invited to
submit comments on or before October
15, 2024.
ADDRESSES: Send your comments on the
information collection request (ICR) by
one of the following methods (please
reference ‘‘1018–0102’’ in the subject
line of your comments):
• Internet (preferred): https://
www.regulations.gov. Follow the
instructions for submitting comments
on Docket No. FWS–HQ–NWRS–2024–
0094.
• U.S. mail: Service Information
Collection Clearance Officer, U.S. Fish
and Wildlife Service, 5275 Leesburg
Pike, MS: PRB (JAO/3W), Falls Church,
VA 22041–3803.
FOR FURTHER INFORMATION CONTACT:
Madonna L. Baucum, Service
Information Collection Clearance
Officer, by email at Info_Coll@fws.gov,
or by telephone at (703) 358–2503.
Individuals in the United States who are
deaf, deafblind, hard of hearing, or have
a speech disability may dial 711 (TTY,
TDD, or TeleBraille) to access
telecommunications relay services.
Individuals outside the United States
should use the relay services offered
within their country to make
international calls to the point-ofcontact in the United States.
SUPPLEMENTARY INFORMATION: In
accordance with the PRA and 5 CFR
1320.8(d)(1), we provide the general
public and other Federal agencies with
an opportunity to comment on new,
proposed, revised, and continuing
collections of information. This helps us
SUMMARY:
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]]>Agencies
[Federal Register Volume 89, Number 157 (Wednesday, August 14, 2024)]
[Notices]
[Pages 66127-66133]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18002]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6479-N-01]
Fair Market Rents for the Housing Choice Voucher Program,
Moderate Rehabilitation Single Room Occupancy Program, and Other
Programs; Fiscal Year 2025
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, Department of Housing and Urban Development, HUD.
ACTION: Notice of fiscal year (FY) 2025 Fair Market Rents (FMRs).
-----------------------------------------------------------------------
SUMMARY: Section 8(c)(1) of the United States Housing Act of 1937
(USHA), as amended by the Housing Opportunities Through Modernization
Act of 2016 (HOTMA), requires the Secretary to publish FMRs not less
than annually, adjusted to be effective on October 1 of each year. This
notice describes the methods used to calculate the FY 2025 FMRs and
lists the procedures for Public Housing Agencies (PHAs) to request
reevaluations of their FMRs as required by HOTMA.
DATES:
Comment Due Date: October 1, 2024.
Implementation Date of Revised FMRs: October 1, 2024, unless HUD
receives a valid request for reevaluation of specific area FMRs as
described below.
ADDRESSES: HUD invites interested persons to submit comments regarding
the FMRs and to request reevaluation of the FY 2025 FMRs.
Communications must refer to the above docket number and title and
should contain the information specified in the ``Request for Public
Comments and FMR Reevaluations'' section. There are two methods for
submitting public comments or reevaluation requests:
1. Electronic Submission of Comments. Interested persons may submit
comments or reevaluation requests electronically through the Federal
eRulemaking Portal at https://www.regulations.gov. HUD strongly
encourages commenters to submit comments or reevaluation requests
electronically. Electronic submission of comments or reevaluation
requests allows the author maximum time to prepare and submit a comment
or reevaluation request, ensures timely receipt by HUD, and enables HUD
to make them immediately available to the public. Comments submitted
electronically through the https://www.regulations.gov website can be
viewed by other submitters and interested members of the public.
[[Page 66128]]
Commenters or reevaluation requestors should follow the instructions
provided on that site to submit comments or reevaluation requests
electronically.
2. Submission of Comments by Mail. Members of the public may submit
comments or requests for reevaluation by mail to the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500.
Note: To receive consideration as public comments or
reevaluation requests, comments or requests must be submitted
through one of the two methods specified above. Again, all
submissions must refer to the docket number and title of the notice.
No Facsimile Comments or Reevaluation Requests. HUD does not accept
facsimile (FAX) comments or requests for FMR reevaluation.
FOR FURTHER INFORMATION CONTACT: For technical information on the
methodology used to develop FMRs or a listing of all FMRs, please call
the HUD USER information line at 800-245-2691 or access the information
on the HUD USER website at https://www.huduser.gov/portal/datasets/fmr.html. HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as from
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
Questions related to the use of FMRs or voucher payment standards
should be directed to the respective local HUD program staff or the
Office of Public and Indian Housing Customer Service Center at https://www.hud.gov/program_offices/public_indian_housing/about/css. Questions
on how to conduct FMR surveys may be addressed to the electronic
mailbox for the Program Parameters and Research Division at
[email protected].
Electronic Data Availability. This Federal Register notice will be
available electronically from the HUD User page at https://www.huduser.gov/portal/datasets/fmr.html. Federal Register notices also
are available electronically from https://www.federalregister.gov/, the
U.S. Government Publishing Office website. Complete documentation of
the methods and data used to compute each area's FY 2025 FMRs is
available at https://www.huduser.gov/portal/datasets/fmr.html#2025_query. FY 2025 FMRs are available in a variety of
electronic formats at https://www.huduser.gov/portal/datasets/fmr.html,
including in PDF and Microsoft Excel. Small Area FMRs for all
metropolitan FMR areas and nonmetropolitan areas are available in
Microsoft Excel format at: https://www.huduser.gov/portal/datasets/fmr/smallarea/. For informational purposes, HUD also publishes
50th percentile rents for all FMR areas at https://www.huduser.gov/portal/datasets/50per.html.
SUPPLEMENTARY INFORMATION:
I. Background
Section 8 of the USHA (42 U.S.C. 1437f) authorizes housing
assistance to aid lower-income families in renting safe and decent
housing. Housing assistance payments are limited by FMRs established by
HUD for different geographic areas. In the Housing Choice Voucher (HCV)
program, the FMR is the basis for determining the ``payment standard
amount'' used to calculate the maximum monthly subsidy for an assisted
family. See 24 CFR 982.503. HUD also uses the FMRs to determine initial
renewal rents for some expiring project-based Section 8 contracts,
initial rents for housing assistance payment contracts in the Moderate
Rehabilitation Single Room Occupancy program, rent ceilings for rental
units in both the HOME Investment Partnerships program and the
Emergency Solution Grants program, calculation of maximum award amounts
for Continuum of Care recipients and the maximum amount of rent a
recipient may pay for property leased with Continuum of Care funds, and
calculation of flat rents in Public Housing units. The FMR is also used
to determine the Performance Based Contract Administration Fee in
Multifamily Housing. In general, the FMR for an area is the amount that
a tenant would need to pay the gross rent (shelter rent plus utilities)
of privately owned, decent, and safe rental housing of a modest (non-
luxury) nature with suitable amenities. HUD's FMR calculations
represent HUD's best effort to estimate the 40th percentile gross rent
paid by recent movers into standard quality units in each FMR area. In
addition, all rents subsidized under the HCV program must meet
reasonable rent standards.
HUD's methodology for calculation FMRs is described in Section III.
HUD first adopted this methodology for the calculation of FY 2024 FMRs,
and it is unchanged for FY 2025.
II. Publication of FMRs
Section 8(c)(1) of the USHA,\1\ as amended by HOTMA (Pub. L. 114-
201, enacted July 29, 2016), requires the Secretary of HUD to publish
FMRs not less than annually. Section 8(c)(1)(A) states that each FMR
``shall be adjusted to be effective on October 1 of each year to
reflect changes, based on the most recent available data trended so the
rentals will be current for the year to which they apply. . . .''
Section 8(c)(1)(B) requires that HUD publish, not less than annually,
new FMRs on the World Wide Web or in any other manner specified by the
Secretary, and that HUD must also notify the public of when it
publishes FMRs by Federal Register notice. After notification, the FMRs
``shall become effective no earlier than 30 days after the date of such
publication,'' and HUD must provide a procedure for the public to
comment and request a reevaluation of the FMRs in a jurisdiction before
the FMRs become effective. Consistent with the statute, HUD is issuing
this notice to notify the public that FY 2025 FMRs are available at
https://www.huduser.gov/portal/datasets/fmr.html and will become
effective on October 1, 2024. This notice also provides procedures for
FMR reevaluation requests.
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\1\ 42 U.S.C. 1437f.
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III. FMR Methodology
This section provides a brief overview of how HUD computes the FY
2025 FMRs. For complete information on how HUD derives each area's
FMRs, see the online documentation at https://www.huduser.gov/portal/datasets/fmr.html#2025_query.
A. Geographic Area Definitions
The FY 2025 FMRs are based on the updated metropolitan area
definitions published by the Office of Management and Budget (OMB) on
September 14, 2018 and first incorporated by the Census Bureau into the
2019 American Community Survey (ACS) data, and the corresponding FY
2022 FMRs. On July 21, 2023, OMB published Bulletin No. 23-01 which
contains revisions to metropolitan area definitions. However, the
Census Bureau has not yet incorporated these revisions into the data
available to HUD, and therefore HUD is not using these new definitions
for FY 2025.
Pursuant to section 107(a) of HOTMA (Pub. L. 114-201) for FY 2025,
HUD is adding Westchester County, NY to the New York, NY HUD
Metropolitan Fair Market Rent Area. Westchester County, NY will remain
a separate median family income and income limit area pursuant to 42
U.S.C. 1437(b)(2)(D).
B. Base Year Rents
For FY 2025 FMRs, HUD uses the U.S. Census Bureau's 5-year ACS data
[[Page 66129]]
collected between 2018 and 2022 as the ``base rents'' for the FMR
calculations. These data are the most current ACS data available at the
time that HUD calculates the FY 2025 FMRs. HUD pairs a ``margin of
error'' test \2\ with an additional requirement based on the number of
survey observations supporting the estimate to improve the statistical
reliability of the ACS data used in the FMR calculations. The Census
Bureau does not provide HUD with an exact count of the number of
observations supporting the ACS estimate; rather, the Bureau provides
HUD with categories of the number of survey responses underlying the
estimate, including whether the estimate is based on more than 100
observations. Using these categories, HUD requires that, in addition to
meeting the ``margin of error'' test, ACS rent estimates must be based
on at least 100 observations to be used as base rents.
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\2\ HUD's margin of error test requires that the margin of error
of the ACS estimate is less than half the size of the estimate
itself.
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For areas in which the 5-year ACS data for two-bedroom, standard
quality gross rents do not pass the statistical reliability tests
(i.e., have a margin of error ratio greater than 50 percent or fewer
than 100 observations), HUD uses an average of the base rents over the
three most recent years \3\ (provided that there is data available for
at least two of these years),\4\ or if such data are not available,
using the two-bedroom rent data within the next largest geographic
area. For a metropolitan subarea, the next largest area is its
containing metropolitan area. For a non-metropolitan area, the next
largest area is the state non-metropolitan portion.
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\3\ For FY 2025, the three years of ACS data in question are
2020, 2021 and 2022. HUD adjusts the 2020 and 2021 data to be
denominated in 2022 dollars using the growth in Consumer Price Index
(CPI)-based gross rents measured between those years and 2022.
\4\ To be used in the three-year average calculation, the 5-year
estimates must be minimally statistically qualified; that is, the
margin of error of the estimates must be less than half the size of
the estimate.
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C. Recent-Mover Factors
Following the assignment of the standard quality two-bedroom rent
described above, HUD applies a recent-mover factor to these rents. HUD
calculates the recent-mover factor as the change between the 5-year
2018-2022 standard quality two-bedroom gross rent and the 1-year 2022
recent mover gross rent for the recent mover factor area. HUD does not
allow recent-mover factors to lower the standard quality base rent;
therefore, if the 5-year standard quality rent is larger than the
comparable 1-year recent mover rent, HUD sets the recent-mover factor
to 1. When the recent-mover factor is greater than one and calculated
for the same geographic area as the base rent, HUD is, in effect,
replacing the base rent with the recent-mover rent for that area.
In determining the recent mover factor, HUD first considers the
rents of households who moved into their unit only in the current ACS
year. For ACS 2022, this means that the maximum length of time for a
household to have lived in its current unit and still be considered a
recent mover under this definition would be 11 months. HUD applies the
same two statistical reliability checks to each ACS recent mover
estimate as it does for the base rent estimate. First, the estimate
must be supported by at least 100 sample cases from the ACS. Second,
the estimate must have a margin of error that is smaller than half the
estimate itself. HUD first considers the estimate for two-bedroom
units, then for units of all bedroom sizes. For areas without an ACS
estimate meeting these criteria, HUD next checks the estimate tabulated
from two-year recent movers. If the local two-year recent mover
estimates are not reliable, HUD considers the estimates for
increasingly larger areas of geography.
D. Other Rent Survey Data
HUD calculates base rents for the insular areas using data
collected during the 2010 decennial census of American Samoa, the
Northern Mariana Islands, and the Virgin Islands beginning with the FY
2016 FMRs.\5\ HUD updates the 2010 base year data to 2022 using the
growth in national ACS data for the FY 2025 FMRs. Note that while the
2010 decennial census also included Guam, HUD uses the result of a more
recent rent survey in calculating the FMRs for Guam, as discussed in
the following paragraph. HUD is working with the Census Bureau to
provide special tabulations of the 2020 Island Area Census and hopes to
include these data in FY 2026 FMRs.
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\5\ The ACS is not conducted in the Pacific Islands (Guam,
Northern Mariana Islands and American Samoa) or the US Virgin
Islands. As part of the 2010 Decennial Census, the Census Bureau
conducted ``long-form'' sample surveys for these areas. HUD uses the
results gathered by this long form survey for the FY 2025 FMRs.
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HUD does not use ACS data to establish the base rent or recent-
mover factor in cases where it has locally collected survey data which
are more recent than the 2022 ACS. For larger metropolitan areas that
have valid ACS one-year recent-mover data, survey data may not be any
older than the mid-point of the calendar year for the ACS one-year
data. Since the ACS one-year data used for the FY 2025 FMRs is from
2022, larger areas with valid one-year recent mover data may not use
other survey data collected before June 30, 2022 for the FY 2025 FMRs.
Areas without statistically reliable 1-year ACS data may continue to
use local survey data until the mid-point of the 5-year ACS data is
more recent than the local survey. For FY 2025 FMRs, the following are
Metropolitan Statistical Areas (MSAs), HUD Metro FMR Areas, or non-
metropolitan counties that have FMRs based on local ad hoc surveys:
(1) HUD uses survey data from 2019 to calculate the FMRs for Guam.
(2) HUD uses survey data from 2021 to calculate the FMRs for Iron
County, UT; Knox County, ME; Lincoln County, ME; Transylvania County,
NC; and Waldo County, ME.
(3) HUD uses survey data from 2022 to calculate the FMRs for Grand
Rapids-Wyoming, MI HUD Metro FMR Area; Hawaii County, HI; Hood River
County, OR; Salinas, CA MSA; Seattle-Bellevue, WA HUD Metro FMR Area;
and Wasco County, OR.
(4) HUD uses survey data from 2023 to calculate the FMRs for San
Benito County, CA HUD Metro FMR Area; Santa Cruz-Watsonville, CA MSA;
and Urban Honolulu, HI MSA.
E. Gross Rent Inflation Adjustment Factors
The ACS recent mover rent estimates as described above produce a
rent value that is ``as of'' 2022. To account for inflation, HUD
adjusts this value using an inflation factor that captures rent growth
from 2022 to 2023. HUD uses a local measure of private rent inflation
for markets that are covered by at least three of the six available
sources of private rent data. HUD combines this local measure of rent
inflation with either the local metropolitan area CPI rent of primary
residence for the 23 areas where such data exist, or the regional CPI
rent in areas without a local index.
HUD uses both private data and the CPI in an attempt to fully and
accurately measure recent mover rent inflation. Research has shown that
private data often provide a timelier measure of recent mover rent
inflation than the CPI, which is constructed by measuring the rents of
both in-place and new tenants. However, the CPI provides other
advantages as a measure of rent inflation, such as consisting of a
representative sample of all housing units, measuring rent in the same
units
[[Page 66130]]
over time (a ``repeat rent'' sample), and adjusting for the aging of
units.
The private measures of rent used by HUD are the ApartmentList Rent
Estimate, CoStar Group average effective rent, CoreLogic, Inc., single-
family combined 3-bedroom median rent, Moody's Analytics REIS average
market rent, RealPage average effective rent per unit, and Zillow
Observed Rent Index. In calculating a measure of inflation from these
data, HUD first takes the annual average of each statistic, then its
year-to-year change. HUD then takes the mean of the changes from all
available sources for each area.
Next, HUD takes an average of this private-sector measure of rent
inflation with rent inflation as captured by the CPI for the area,
where the private-sector measure is weighted at approximately 75
percent and the CPI rent inflation measure is weighted at approximately
25 percent. HUD has determined and updated these weights by comparing
the national average of the private rent changes and changes in CPI
rent of primary residence to changes in the national average of recent
mover rents from the ACS from 2018 through 2022. HUD weights the
private data averages and overall CPI rent of primary residence in such
a way as to minimize the root mean squared error between the resulting
average and the ACS recent mover rents. For future FMRs, HUD will
continue update the weights by adding the most recent years of ACS
recent mover rents, private rent data, and CPI rent of primary
residence to the analysis.
For areas without at least three of the six private rent data
sources available, HUD uses a regional average of private rent
inflation factors alongside the regional CPI rent of primary residence
using the nationally derived weights described above. HUD constructs
the regional average by taking the rental unit weighted average of the
change in rents of each area in a region that does have private rent
data coverage. This ensures that smaller areas which are not covered by
the private sources directly still have current rental market
conditions taken into account in the calculation of the rent inflation
factor for such areas.
Finally, HUD averages the result of this step with the year-to-year
change in the CPI housing fuels and utilities index for the area in
order to make the resulting inflation measure reflective of gross
rents. The results of this step are gross rent estimates that are ``as
of'' 2023.
F. Trend Factor Forecasts
Following the application of the appropriate gross rent inflation
factor, HUD trends the gross rent estimate from 2023 to FY 2025 using a
trend factor which is based on local or regional forecasts of CPI gross
rent data. HUD derived a trend factor for each Class A CPI area and
Class B/C CPI region using time series models based on national inputs
(National Input Model or NIM), local inputs (Local Input Model or LIM),
and historical values of the predicted series (Pure Time Series--PTS).
HUD chose the actual model used for each CPI area's trend factor based
on which model generates the lowest Root Mean Square Error (RMSE)
statistic and applied the trend factors to the corresponding FMR areas.
HUD established the type of model for each forecast (NIM, LIM, or PTS)
for the FY 2020 FMRs. HUD had previously stated it would reassess the
model selections during the calculation of the FY 2025 FMRs. However,
due to the high degree of volatility that occurred in rental markets
from 2020-2023, HUD believes that evaluating model performance during
this period will not result in the best long term model selection. More
details on the trend factor forecasts are available in the June 5, 2019
Federal Register notice (84 FR 26141) and are available at https://www.federalregister.gov/documents/2019/06/05/2019-11763/proposed-changes-to-the-methodology-used-for-estimating-fair-market-rents.
G. Bedroom Rent Adjustments
HUD uses two-bedroom units for its primary calculation of FMR
estimates. This is generally the most common size of rental unit and,
therefore, the most reliable to survey and analyze. After estimating
two-bedroom FMRs, HUD calculates bedroom ratios for each FMR area,
which relate the prices of smaller and larger units to the cost of two-
bedroom units. The bedroom ratios HUD uses in the calculation of FY
2025 FMRs are calculated from three five-year ACS data series (2016-
2020, 2017-2021, and 2018-2022). HUD only uses estimates with a margin
of error ratio of less than 50 percent. If an area does not have
reliable estimates in at least two of the previous three ACS releases,
HUD uses the bedroom ratios for the area's larger parent geography.
To ensure an adequate distributional fit in these bedroom ratio
calculations for individual FMR areas, HUD establishes bedroom interval
ranges which set upper and lower limits for bedroom ratios nationwide,
based on an analysis of the range of such intervals for all areas with
large enough samples to permit accurate bedroom ratio determinations.
In the calculation of FY 2025 FMR estimates, HUD sets the bedroom
interval ranges as follows: efficiency FMRs are constrained to fall
between 0.69 and 0.87 of the two-bedroom FMR; one-bedroom FMRs must be
between 0.76 and 0.90 of the two-bedroom FMR; three-bedroom FMRs (prior
to the adjustments described below) must be between 1.11 and 1.29 of
the two-bedroom FMR; and four-bedroom FMRs (again, prior to adjustment)
must be between 1.23 and 1.56 of the two-bedroom FMR. Given that these
interval ranges partially overlap across unit bedroom counts, HUD
further adjusts bedroom ratios for a given FMR area, if necessary, to
ensure that higher bedroom-count units have higher rents than lower
bedroom-count units within that area.
HUD further adjusts the rents for three-bedroom and larger units to
reflect HUD's policy to set higher rents for these units.\6\ This
adjustment is intended to increase the likelihood that the largest
families, who have the most difficulty in leasing units, will be
successful in finding eligible program units. The adjustment adds 8.7
percent to the unadjusted three-bedroom FMR estimates and adds 7.7
percent to the unadjusted four-bedroom FMR estimates.
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\6\ As mentioned above, HUD applies the interval ranges for the
three-bedroom and four-bedroom FMR ratios prior to making these
adjustments. In other words, the adjusted three- and four-bedroom
FMRs can exceed the interval ranges but the unadjusted FMRs cannot.
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HUD derives FMRs for units with more than four bedrooms by adding
15 percent to the four-bedroom FMR for each extra bedroom. For example,
the FMR for a five-bedroom unit is 1.15 times the four-bedroom FMR, and
the FMR for a six-bedroom unit is 1.30 times the four-bedroom FMR.
Similarly, HUD derives FMRs for single-room occupancy units by
subtracting 25 percent from the zero-bedroom FMR (i.e., they are set at
0.75 times the zero-bedroom (efficiency) FMR).\7\
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\7\ As established in the interim rules implementing the
provisions of the Quality Housing and Work Responsibility Act of
1998 (Title V of the FY 1999 HUD Appropriations Act; Pub. L. 105-
276) in 24 CFR 982.604.
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H. Minimum FMRs
All FMRs are subject to a minimum rent based on state or national
non-metropolitan area median rent. HUD calculates a population-weighted
median two-bedroom FMR across all non-metropolitan counties or county-
equivalents of each state, which, for the purposes of FMRs, is the
state minimum
[[Page 66131]]
rent. State-minimum rents for each FMR area are available in the FY
2025 FMR Documentation System, available at https://www.huduser.gov/portal/datasets/fmr.html#2025_query. HUD also calculates the population
weighted median FMR rent across all non-metropolitan areas of the
country, which, for the purposes of FMRs, is the national non-
metropolitan rent. For FY 2025, the national non-metropolitan rent is
$933. The applicable minimum rent for a particular area is the lower of
the state or national non-metropolitan median. Each area's two-bedroom
FMR must be no less than the applicable minimum rent.
I. Limit on FMR Decreases
HUD's regulations at 24 CFR 888.113 include a limit on the amount
that FMRs may annually decrease. The current year's FMRs resulting from
the application of the bedroom ratios, as discussed in section (E)
above, may be no less than 90 percent of the prior year's FMRs for
units with the same number of bedrooms. Accordingly, if the current
year's FMRs are less than 90 percent of the prior year's FMRs as
calculated by the above methodology, HUD sets the current year's FMRs
equal to 90 percent of the prior year's FMRs. For areas where HUD has
required the use of Small Area FMRs in the administration of their
voucher programs since 2018, the FY 2025 Small Area FMRs may be no less
than 90 percent of the FY 2024 Small Area FMRs. For newly designated
mandatory Small Area FMR areas under the October 23, 2023 notice
``Small Area Fair Market Rents in the Housing Choice Voucher Program--
Metropolitan Areas Subject to Small Area Fair Market Rents'', the FY
2025 Small Area FMRs may be no less than 90 percent of the greater of
the FY 2024 metropolitan area wide FMRs or the applicable FY 2024 Small
Area FMR, as Small Area FMRs were not yet in effect for these areas in
FY 2024. For all other metropolitan areas, the FY 2025 Small Area FMRs
may be no less than 90 percent of the greater of the FY 2024
metropolitan area wide FMRs or the applicable FY 2024 Small Area FMR.
The following table demonstrates these scenarios:
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FY 2025 ``floor'' FY 2026 ``floor''
Type of area for small area FMRs for small area FMRs
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Areas where the use of Small 90 percent of FY 90 percent of FY
Area FMRs was mandatory 2024 Small Area 2025 Small Area
prior to FY 2025, or have FMRs. FMRs.
optionally used Small Area
FMRs before FY 2025.
Areas where the use of Small Higher of 90 percent 90 percent of FY
Area FMRs is mandatory as of FY 2024 Small 2025 Small Area
of FY 2025 or optionally Area FMRs and 90 FMRs.
begin to use Small Area percent of FY 2024
FMRs in FY 2025. Metropolitan FMRs.
All other areas............. Higher of 90 percent Higher of 90 percent
of FY 2024 Small of FY 2025 Small
Area FMRs and 90 Area FMRs and 90
percent of FY 2024 percent of FY 2025
Metropolitan FMRs. Metropolitan FMRs.
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PHAs operating in areas where the calculated FMR is lower than the
published FMR (i.e., those areas where HUD has limited the decrease in
the annual change in the FMR to 10 percent) may request payment
standards below the basic range (24 CFR 982.503(d)) and reference the
``unfloored'' rents (i.e., the unfinalized FMRs calculated by HUD prior
to application of the 10-percent-decrease limit) depicted in the FY
2025 FMR Documentation System (available at: https://www.huduser.gov/portal/datasets/fmr.html#2025_query).
IV. Small Area FMRs
A. SAFMR Mandatory Use
HUD lists Small Area FMRs for all areas in the Small Area FMR
Schedule. PHAs operating in areas where the use of Small Area FMRs is
not mandated should notify HUD of their use of Small Area FMRs in the
operation of their Housing Choice Voucher program.
On October 25, 2023, HUD published the notice ``Small Area Fair
Market Rents in the Housing Choice Voucher Program--Metropolitan Areas
Subject to Small Area Fair Market Rents'', which requires 41 additional
metropolitan areas to use Small Area Fair Market Rents in the
administration of the Housing Choice Voucher program beginning in FY
2025.\8\ These areas are as follows:
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\8\ 88 FR 73352, available at: https://www.huduser.gov/portal/sites/default/files/pdf/federal-register-notice-2023.pdf.
Akron, OH MSA
Augusta-Richmond County, GA-SC HUD Metro FMR Area
Beaumont-Port Arthur, TX MSA
Birmingham-Hoover, AL HUD Metro FMR Area
Buffalo-Cheektowaga-Niagara Falls, NY MSA
Charleston-North Charleston, SC MSA
Chattanooga, TN-GA MSA
Cincinnati, OH-KY-IN HUD Metro FMR Area
Cleveland-Elyria, OH MSA
Columbus, OH HUD Metro FMR Area
Dayton-Kettering, OH MSA
Des Moines-West Des Moines, IA HUD Metro FMR Area
Detroit-Warren-Livonia, MI HUD Metro FMR Area
Fort Wayne, IN MSA
Greensboro-High Point, NC HUD Metro FMR Area
Harrisburg-Carlisle, PA MSA
Indianapolis-Carmel, IN HUD Metro FMR Area
Jersey City, NJ HUD Metro FMR Area
Kansas City, MO-KS HUD Metro FMR Area
Knoxville, TN HUD Metro FMR Area
Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Louisville, KY-IN HUD Metro FMR Area
Memphis, TN-MS-AR HUD Metro FMR Area
Miami-Miami Beach-Kendall, FL HUD Metro FMR Area
Mobile, AL HUD Metro FMR Area
Montgomery, AL MSA
Nashville-Davidson-Murfreesboro-Franklin, TN HUD Metro FMR Area
Oklahoma City, OK HUD Metro FMR Area
Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
Orlando-Kissimmee-Sanford, FL MSA
Oxnard-Thousand Oaks-Ventura, CA MSA
Phoenix-Mesa-Scottsdale, AZ MSA
Raleigh, NC MSA
San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area
Seattle-Bellevue, WA HUD Metro FMR Area
St. Louis, MO-IL HUD Metro FMR Area
Tucson, AZ MSA
Tulsa, OK HUD Metro FMR Area
Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area
Wichita, KS HUD Metro FMR Area
Winston-Salem, NC HUD Metro FMR Area
B. SAFMR Methodology
Newly for FY 2025, HUD has calculated SAFMRs for both metropolitan
and non-metropolitan areas. The methodology for calculating SAFMRs is
as follows:
First, HUD calculates Small Area FMRs directly from the standard
quality gross rents provided to HUD by the Census Bureau for ZIP Code
Tabulation Areas (ZCTAs) when such data are statistically reliable. The
ZCTA two-bedroom equivalent 40th percentile gross rent is analogous to
the standard quality base rents set for metropolitan areas and non-
metropolitan counties.
[[Page 66132]]
For each ZCTA with statistically reliable gross rent estimates, using
the expanded test of statistical reliability first used in FY 2018
(i.e., estimates with margins of error ratios below 50 percent and
based on at least 100 observations), HUD calculates a two-bedroom
equivalent 40th percentile gross rent using the first statistically
reliable gross rent distribution data from the following data sets (in
this order): two-bedroom gross rents, one-bedroom gross rents, and
three-bedroom gross rents. If either the one-bedroom or three-bedroom
gross rent data are used because the two-bedroom gross rent data are
not statistically reliable, HUD converts the one-bedroom or three-
bedroom 40th percentile gross rent to a two-bedroom equivalent rent
using the bedroom ratios for the ZCTA's parent metropolitan or non-
metropolitan area. To increase stability to these Small Area FMR
estimates, HUD averages the latest three years of gross rent
estimates.\9\
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\9\ For example, for FY 2025 Small Area FMRs, HUD averages the
gross rents from 2020, 2021, and 2022 5-Year ACS estimates. The 2020
and 2021 gross rent estimates would be adjusted to 2022 dollars
using the metropolitan area's gross rent CPI adjustment factors.
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For ZCTAs without usable gross rent data by bedroom count, HUD
calculates Small Area FMRs using the rent ratio method. To calculate
Small Area FMRs using a rent ratio, HUD divides the median gross rent
across all bedrooms for the ZCTA by the similar median gross rent for
the metropolitan or non-metropolitan area of the ZCTA. If a ZCTA does
not have reliable rent data at the all-bedroom level, HUD will then
check to see if the ZCTA borders other ZCTAs that themselves have
reliable rent data. If at least half of a ZCTA's ``neighbors'' have
such data, HUD will use the weighted average of those estimates as the
basis for the Small Area FMR rather than a county proxy, where the
weight is the length of the shared boundary between the ZCTA and its
neighbor. In small areas where the neighboring ZCTA median gross rents
are not statistically reliable, HUD substitutes the median gross rent
for the county containing the ZIP code in the numerator of the rent
ratio calculation. HUD multiplies this rent ratio by the current two-
bedroom FMR for the metropolitan or non-metropolitan area containing
the small area to generate the current year two-bedroom FMR for the
small area.
HUD continues to use a rolling average of ACS data in calculating
the Small Area FMR rent ratios. HUD believes coupling the most current
data with previous year's data minimizes excessive year-to-year
variability in Small Area FMR rent ratios due to sampling variance.
Therefore, for FY 2025 Small Area FMRs, HUD has updated the rent ratios
to use an average of the rent ratios calculated from the 2016-2020,
2017-2021, and 2018-2022 5-year ACS estimates.
HUD limits each two-bedroom Small Area FMR to be no more than 150
percent of the two-bedroom FMR for the metropolitan or non-metropolitan
area where the ZIP code is located.
V. Request for Public Comments and FMR Reevaluations
HUD accepts public comments on the methods HUD uses to calculate FY
2025 FMRs and requests for reevaluation of FMRs for specific areas for
30 days after the publication of this notice. HUD lacks the resources
to conduct local surveys of rents to address comments filed regarding
the FMR levels for specific areas. PHAs may continue to fund such
surveys independently, as specified below, using ongoing administrative
fees or their administrative fee reserve if they so choose. HUD
continually strives to calculate FMRs that meet the statutory
requirement of using ``the most recent available data'' while also
serving as an effective program parameter.
A. FMR Reevaluations
42 U.S.C. 1437f(c)(1)(B) includes the following: ``The Secretary
shall establish a procedure for public housing agencies and other
interested parties to comment on such fair market rentals and to
request, within a time specified by the Secretary, reevaluation of the
fair market rentals in a jurisdiction before such rentals become
effective.''
PHAs or other parties interested in requesting HUD's reevaluation
of their area's FY 2025 FMRs, as provided for under section 8(c)(1)(B)
of USHA, must follow the following procedures:
(1) By the end of the 30-day comment period, PHAs or other parties
must submit reevaluation requests through https://www.regulations.gov/
or directly to HUD as described in the Addresses section above. The
area's PHA or, in multi-jurisdictional areas, PHA(s) representing at
least half of the voucher tenants in the FMR area, must agree that the
reevaluation is necessary.
(2) The requestor(s) must supply HUD with data more recent than the
2022 ACS data used in the calculation of the FY 2025 FMRs. HUD requires
data on gross rents paid in the FMR area for occupied standard quality
rental housing units. Occupied recent mover units (defined as those who
moved in the past 24 months, although a shorter definition may also be
used at the requestor's discretion) provide the best data. The data
delivered must be sufficient for HUD to calculate a 40th percentile
two-bedroom gross rent. Should this type of data not be available,
requestors may gather this information using the survey guidance
available at https://www.huduser.gov/portal/datasets/fmr/NoteRevisedAreaSurveyProcedures.pdf and https://www.huduser.gov/portal/datasets/fmr/PrinciplesforPHA-ConductedAreaRentSurveys.pdf.
(3) Areas where valid reevaluation requests are submitted may
continue to use FY 2024 FMRs, or may use the FY 2025 FMRs. Commenters
should indicate whether they wish to maintain the FY 2024 or implement
the FY 2025 FMR during the revaluation period as part of their
reevaluation request. PHAs requesting reevaluation in areas newly
designated as SAFMR areas must adopt SAFMRs, but they may be the FY
2024 SAFMRs or FY 2025 SAFMRs during the reevaluation period. Following
the comment period, HUD will post a list, at https://www.huduser.gov/portal/datasets/fmr.html, of the areas requesting reevaluations where
FY 2024 FMRs remain in effect.
(4) PHAs or other parties must supply data for reevaluations to HUD
no later than Friday, January 10, 2025. All survey responses of rental
units gathered as part of the survey efforts should be delivered to HUD
via email. New for FY 2025, HUD requests that survey responses include
the ZIP Code or comparable small-area identifier (such as Census tract)
of the housing unit. In addition to the survey data, HUD requires a
current utility schedule to evaluate the survey responses. Finally, HUD
encourages PHAs to evaluate their survey data to ensure the survey
supports their request. Should PHAs or their contractors undertake this
evaluation, HUD requests that this analysis also be submitted.
HUD will use the data delivered by January 10, 2025 to reevaluate
the FMRs and following the reevaluation, HUD will post revised FMRs in
April of 2025 with an accompanying Federal Register notice stating the
revised FMRs are available, which will include HUD's responses to
comments filed during the comment period for this notice. By January
17, 2025, HUD will post at https://www.huduser.gov/portal/datasets/fmr.html a listing of the areas that requested FMR reevaluations and
continued effect of the FY2024 FMRs, but did not deliver data, making
the FY 2025 FMRs effective in these areas. HUD will incorporate any
data supporting a change in FMRs supplied after January 10, 2025 into
the FY 2026 FMRs.
[[Page 66133]]
Questions on how to conduct FMR surveys may be addressed to the Program
Parameters and Research Division at [email protected].
For small metropolitan areas without one-year ACS data and non-
metropolitan counties, HUD has developed a method of using mail surveys
that is discussed on the FMR web page: https://www.huduser.gov/portal/datasets/fmr.html#survey_info. This method allows for the a PHA to
submit a valid survey consisting of as few as 100 one-bedroom, two-
bedroom, and three-bedroom units.
Other survey methods are acceptable in providing data to support
reevaluation requests if the survey method can provide statistically
reliable, unbiased estimates of gross rents paid throughout the entire
FMR area. In general, recommendations for FMR changes and supporting
data must reflect the rent levels that exist within the entire FMR area
and should be statistically reliable.
PHAs in non-metropolitan areas are required to get 100 eligible
survey responses which means they should have at least 5,000 rental
units, taking in to account survey non-response rates and the fact that
some units will fail to qualify. PHAs may conduct surveys of groups of
non-metropolitan counties to increase the number of rental units that
are surveyed, but HUD must approve all county-grouped surveys in
advance. HUD cautions that the resulting FMRs may not be identical for
the counties surveyed; each individual FMR area will have a separate
FMR based on the relationship of rents in that area to the combined
rents in the cluster of FMR areas. In addition, HUD advises that in
counties where FMRs are based on the combined rents in the cluster of
FMR areas, HUD will not revise their FMRs unless the grouped survey
results show a revised FMR statistically different from the combined
rent level.
Survey samples should preferably be randomly drawn from a complete
list of rental units for the FMR area. If this is not feasible, the
selected sample must be drawn to be statistically representative of the
entire rental housing stock of the FMR area. Surveys must include units
at all rent levels and be representative by structure type (including
single-family, duplex, and other small rental properties), age of
housing unit, and geographic location. The current 5-year ACS data
should be used as a means of verifying if a sample is representative of
the FMR area's rental housing stock. HUD staff are available to work
with PHAs in areas requesting re-evaluations to provide the minimum
number of survey cases required to ensure that data submitted for re-
evaluation represent a statistically valid sample. In cases where a
submitted sample is not representative, HUD may attempt to weight the
sample cases prior to calculating 40th percentile rent estimates.
A PHA or contractor that cannot obtain the recommended number of
sample responses after reasonable efforts should consult with HUD
before abandoning its survey; in such situations, HUD may find it
appropriate to relax normal sample size requirements, but in no case
will fewer than 100 eligible cases be considered.
VI. Environmental Impact
This notice involves the establishment of FMR schedules, which do
not constitute a development decision affecting the physical condition
of specific project areas or building sites. Accordingly, under 24 CFR
50.19(c)(6), this notice is categorically excluded from environmental
review under the National Environmental Policy Act of 1969 (42 U.S.C.
4321).
Accordingly, the Fair Market Rent Schedules, which will not be
codified in 24 CFR part 888, are available at https://www.huduser.gov/portal/datasets/fmr.html.
Solomon Greene,
Principal Deputy Assistant Secretary for Policy Development and
Research.
Fair Market Rents for the Housing Choice Voucher Program
Schedule B--General Explanatory Notes
Arrangement of FMR Areas and Identification of Constituent Parts
a. The Metropolitan and Non-Metropolitan FMR Area Schedule lists
FMRs alphabetically by state, by metropolitan area and by non-
metropolitan county within each state and are available at https://www.huduser.gov/portal/datasets/fmr.html.
b. The schedule lists the constituent counties (and New England
towns and cities) included in each metropolitan FMR area immediately
following the listings of the FMR dollar amounts. All constituent parts
of a metropolitan FMR area that are in more than one state can be
identified by consulting the listings for each applicable state.
c. The schedule lists two non-metropolitan counties alphabetically
on each line of the non-metropolitan county listings.
d. Similarly, the schedule lists the New England towns and cities
included in a non-metropolitan county immediately following the county
name.
[FR Doc. 2024-18002 Filed 8-13-24; 8:45 am]
BILLING CODE 4210-67-P
