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HUD Proposes Drastic Changes for 2005 Fair Market Rents

The changes came largely as the result of new methodology for calculating the rents that ignored recommendations from NAHB.

The FMRs dropped in more than 750 cases across the country, but rose in others. The largest declines were concentrated in the New England states. The most notable increase took place in San Benito County, CA, where the FMR jumped from $864 to $1,759.

Fair Market Rents — which are calculated annually to reflect what it costs to rent “modest, safe and healthy housing” in specific counties and metro areas — are used in a number of tenant-assisted programs, including Section 8 and HOME.

HUD is required to publish final FMRs for next year by Oct. 1, but it recognizes that adjustments may be needed in some areas. It is working to get better information, which won’t be received in time for that deadline, so a second round of “final” rents will be published after that date.

NAHB is submitting comments, which are due by Sept. 7.

Comments from builders and developers may be more carefully considered this year because of the new methods that have allowed FMRs to change so drastically from one year to the next.

For the full story, which includes guidance on comments and the address to which they should be sent, click here.

For more specific information, e-mail David Ledford at NAHB or call him at 800-368-5242 x8265.

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