FY 24 FMRs Increase 12.2 Percent Nationally Over FY 23
On August 31, HUD published the FY 24 Fair Market Rents (FMRs) in the Federal Register, and posted supporting and detail data here. While FY 23 FMR’s were up 10.7 percent nationally over FY 22 levels, the published FY 24 FMRs are 12.2 percent above FY 23 levels nationally. Local experience, of course, will vary.
HUD has continued and slightly expanded on the modified methodology used in 2023, including the use of private sector data. HUD has also attempted to provide further transparency in the process, methods, and data sources utilized in each specific calculation. The FY 23 calculation changes, as well as the additional adjustments for FY 24, are largely consistent with PHADA’s comments on the FY 23 proposed method changes and on the proposed FY 24 FMRs.
The new FMRs are effective October 1, 2023. (The notice incorrectly says the effective date is October 1, 2024. A correction notice will be published on September 1.) Agencies must revise payments standards for any FMR area with a change of 10 percent or more, or if the existing payment standards fall outside of the basic range of 90–110 percent of the FMR. Payment standard changes triggered by changes in the FMR must be made no later than January 1, 2024.
HUD’s procedures for an FMR Reevaluation require agencies to submit a request for a reevaluation via Regulations.gov no later than the comment deadline of October 2, 2023; supporting documentation and local data that is more current that 2021 ACS data and meets various additional requirements must be submitted by January 5, 2024. See the notice for additional details.
The notice also reminds agencies of other flexibilities available when setting payment standards, even beyond the use of Small Area Fair Market Rents (SAFMR). Specifically, agencies can utilize exception payment standards and success rate payment standards.
Supplemental Funding Awarded
HUD has also released $113 million in HCV funding to 118 high-performing housing authorities in 36 states, providing HCV support for an estimated 9,500 additional households. This funding is remaining HAP set-aside funding awarded to agencies with high utilization but below average leasing.
Do the new FMR’s work for your agency? Let us know by sending an email to: email@example.com, and/or joining us September 17–19 in Washington, DC, for PHADA’s Legislative Forum.