The real estate industry submitted comments to HUD on May 14 expressing concerns with changes related to how property rents are set in the Department’s Section 8 Renewal Guide Proposal. The changes would set subsidy limits that do not reflect market conditions, are based on outdated information, and are not adjusted for current economic realities.
Specifically, instead of using Fair Market Rent as a basis of comparison for the rents set in a comparability study, HUD has proposed to compare rents based on zip-code-level median gross rents from the Census Bureau’s American Community Survey.
Research commissioned by the NMHC/NAA and our industry partners shows that the new benchmark will likely require more HUD-commissioned third-party studies, actually causing HUD’s costs to rise, and resulting in fewer affordable housing units.
NMHC/NAA joined a coalition of real estate groups in providing the comments on the renewal guide, as well as a copy of our industry research. To view the comments and the industry research, please click here.