On September 8, HUD released their proposed FY 2016 Fair Market Rents (FMRs) for public comment. FMRs vary based on several factors like local housing supply and demand, economic conditions and apartment unit size. For the most part, they are set at the metro or county level. As a demonstration project in limited areas, HUD has also chosen to continue to use the concept of Small Area Fair Market Rents (SAFMRs) that are set at zip code level. As usual, changes vary by jurisdiction - in some cases there was a decrease and in others there was an increase.
NMHC/NAA are pleased that HUD has included instructions for contesting an FMR
in their request for public comment. In addition, we are encouraged that the
department has taken steps to be more transparent in its methodology. We submitted a comment letter thanking
them for making progress towards transparency.
It is important for multifamily owners and operators to review the proposed rents for every jurisdiction in which they operate. Overall, approximately 3,116 of the 4,770 areas included in the two-bedroom FMR count will experience an increase from FY 2015 to FY 2016.
The most notable reductions will occur in 11 areas of the country, including: New Haven, CT -$71; Baltimore, MD -$45; Richmond, VA -$38; Stamford, CT -$34; Santa Barbara, CA -$26; Charleston, SC -$24; Memphis, TN -$15; Las Vegas, NV -$12; Kansas City, MO -$9; Phoenix, AZ -$5; and Tallahassee, FL -$2. FMRs for individual areas for FY 2016 can be viewed by clicking here.
Comments or questions? Please contact NMHC’s Caitlin Walter at email@example.com or (202) 974-2343 before October 5 since HUD is seeking public input by October 8.
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