Department of Housing and Urban Development August 26, 2016 – Federal Register Recent Federal Regulation Documents

Today's notice announces the FY 2017 Fair Market Rents (FMRs) for all areas that reflect the estimated 40th and 50th percentile rent levels trended to April 1, 2017. The Housing Opportunities Through Modernization Act of 2016 (HOTMA) (Pub. L. 114-201, approved July 29, 2016) revises the procedure by which HUD publishes its annual FMRs. Specifically, HUD is no longer required to publish proposed FMRs for comment in the Federal Register. Rather, HUD may post the FMRs on HUD's Web site and announce such posting by notice published in the Federal Register. In addition, HOTMA provides that HUD's FMRs shall be effective no earlier than 30 days after the date of the publication of HUD's Federal Register notice but that public housing agencies (PHAs) and other interested parties may comment on the FMR and request revevaluation of FMRs in a jurisdiction before such FMRs become effective. This notice announces that HUD's FY 2017 FMRs are available at www.huduser.gov and will take effect as stated in the DATES section of this notice unless interested parties request reevaluation of a their FMRs by September 26, 2016. HOTMA also requires HUD to publish proposed material changes to the methodology for comment. This notice also announces that HUD is not changing the methodology for calculating the FY 2017 FMRs estimates from that used to determine the FY 2016 FMRs. This notice, however, requests public comments on defining the scope of material changes that will trigger notice and comment in future calculation of FMRs. The FY 2017 FMRs announced in this notice are based on ``5-year'' data collected by the American Community Survey (ACS) from 2010 through 2014. HUD updated the 5-year data with ``one-year'' 2014 ACS data for areas where statistically valid one-year ACS data is available. HUD continues to use ACS data in different ways according to the statistical reliability of rent estimates. HUD uses actual and forecast Consumer Price Index (CPI) rent and utility price indices to further update the ACS-derived rents to the middle of the FY 2017 fiscal year. The FY 2017 FMRs continue to use the February 28, 2013, OMB metropolitan area definitions. As noted above, the FY 2017 FMRs are calculated in the same manner used to calculate of the FY 2016 FMRs with the only differences being the use of updated data. HUD notes that the only area for which HUD announces Small Area FMRs is the Dallas, TX HUD Metro FMR Area. The Small Area FMR Demonstration project with 5 PHA participants concludes on September 30, 2016. The 5 PHAs that participated in the demonstration may continue to be able set their housing choice voucher payment standards based on Small Area FMRs, as discussed in this notice.