[Federal Register Volume 60, Number 157 (Tuesday, August 15, 1995)]
[Proposed Rules]
[Pages 42290-42350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19836]




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_______________________________________________________________________

Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 888



Fair Market Rents for the Section 8 Housing Assistance Payments 
Program, Fiscal Year 1996; Proposed Rule

Federal Register / Vol. 60, No. 157 / Tuesday, August 15, 1995 / 
Proposed Rules 

[[Page 42290]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Part 888

[Docket No. FR-3933-N-01]


Fair Market Rents for the Section 8 Housing Assistance Payments 
Program--Fiscal Year 1996

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed Fiscal Year (FY) 1996 Fair Market Rents (FMRs).

-----------------------------------------------------------------------

SUMMARY: Section 8(c)(1) of the United States Housing Act of 1937 
requires the Secretary to publish FMRs annually to be effective on 
October 1 of each year. FMRs are used for the Section 8 Rental 
Certificate program (including space rentals by owners of manufactured 
homes under that program); the Moderate Rehabilitation Single Room 
Occupancy program; housing assisted under the Loan Management and 
Property Disposition programs; payment standards for the Rental Voucher 
program; and any other programs whose regulations specify their use.
    This document provides the proposed FY 1996 FMRs at the 40th 
percentile level. On March 2, 1995, HUD published the proposed rule to 
revise 24 CFR part 888 to change the FMR rent standard from the 45th to 
40th percentile rent level. That change was published in final on 
August 15, 1995 and made effective on September 14, 1995. The final FY 
1995 FMRs at the 40th percentile level also were made effective on the 
same date in a separate document. That document included revised FMRs 
for 131 areas that had submitted public comments HUD determined 
provided a sufficient basis for such revision. In addition five areas 
were added to Schedule D on the basis of surveys submitted on 
manufactured home space rentals.
    Because of the delay in publishing the proposed FY 1996 FMRs, the 
comment period will extend beyond the October 1 statutory date for 
publishing final FMRs. Therefore, there will be two final FY 1996 FMR 
publications. The first publication will make the FMRs contained in 
this document effective, except for the small number of areas with 
proposed FMR decreases, which will continue to use the FY 1995 FMRs 
until the Department has had the opportunity to assess any comments on 
these reductions. The second publication, to be issued early next year, 
will announce revised final FMRs for the areas for which HUD has made a 
determination that the rental housing surveys submitted provided a 
sufficient basis for such revision.

DATES: Comments due date: October 16, 1995.

ADDRESSES: Interested persons are invited to submit comments regarding 
HUD's estimates of the FMRs as published in this Notice to the Office 
of the General Counsel, Rules Docket Clerk, Room 10276, Department of 
Housing and Urban Development, 451 Seventh Street SW, Washington, DC 
20410. Communications should refer to the above docket number and title 
and should contain the information specified in Section VI. To ensure 
that the information is fully considered by all of the reviewers, each 
commenter is requested to submit two copies of its comments, one to the 
Rules Docket Clerk and the other to the Economic and Market Analysis 
Staff in the appropriate HUD Field Office. A copy of each communication 
submitted will be available for public inspection and copying during 
regular business hours (7:30 a.m.-5:30 p.m. Eastern Time) at the above 
address.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Rental Assistance 
Division, Office of Public and Indian Housing, telephone (202) 708-
0477. (TDD: (202) 708-0850). For technical information on the 
development of schedules for specific areas or the method used for the 
rent calculations, contact Michael R. Allard, Economic and Market 
Analysis Division, Office of Economic Affairs, telephone (202) 708-0577 
(TDD: (202) 708-0770). (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION:

I. Background

    Section 8 of the United States Housing Act of 1937 (the Act) (42 
U.S.C. 1437f) authorizes housing assistance to aid lower income 
families in renting decent, safe, and sanitary housing. Assistance 
payments are limited by FMRs established by HUD for different areas. In 
general, the FMR for an area is the amount that would be needed to pay 
the gross rent (shelter rent plus utilities) of privately owned, 
decent, safe, and sanitary rental housing of a modest (non-luxury) 
nature with suitable amenities.

II. Publication of FMRs

    Section 8(c) of the Act requires the Secretary of HUD to publish 
FMRs periodically, but not less frequently than annually. The 
Department's regulations provide that HUD will develop FMRs by 
publishing proposed FMRs for public comment and after evaluating the 
public comments, publish the final FMRs (see 24 CFR 888.115). The 
proposed FY 1996 FMR schedules at the end of this document list the FMR 
levels for the Rental Certificate program (Schedule B), and for the 
areas where the manufactured home space FMRs have had modifications 
approved (Schedule D).

III. Method used to Develop FMRs

FMR Standard

    The FMRs are gross rent estimates; they include shelter rent and 
the cost of utilities, except telephone. HUD sets FMRs to assure that a 
sufficient supply of rental housing is available to program 
participants. To accomplish this objective, FMRs must be both high 
enough to permit a selection of units and neighborhoods and low enough 
to serve as many families as possible. The level at which FMRs are set 
is expressed as a percentile point within the rent distribution of 
standard quality rental housing units. The current definition used is 
the 40th percentile rent, the dollar amount below which 40 percent of 
the standard quality rental housing units rent. The 40th percentile 
rent is drawn from the distribution of rents of units which are 
occupied by recent movers (renter households who moved into their unit 
within the past 15 months). Newly built units less than two years old 
are excluded, and adjustments have been made to correct for the below 
market rents of public housing units included in the data base.

Data Sources

    HUD uses the most accurate and current data available to develop 
the FMR estimates. The sources of survey data used for the base-year 
estimates are:
    (1) the 1990 Census, which provides statistically reliable rent 
data for all FMR areas;
    (2) the Bureau of the Census' American Housing Surveys (AHSs), 
which are used to develop between-Census revisions for the largest 
metropolitan areas and which have accuracy comparable to the decennial 
Census; and
    (3) the Random Digit Dialing (RDD) telephone surveys of individual 
FMR areas, which are based on a sampling procedure that uses computers 
to select statistically random samples of rental housing.
    The base-year FMRs are updated using trending factors based on 
Consumer Price Index (CPI) data for rents and utilities or HUD regional 
rent change factors developed from RDD surveys. Annual average CPI data 
are available individually for 102 

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metropolitan FMR areas. RDD Regional rent change factors are developed 
annually for the metropolitan and nonmetropolitan parts of each of the 
10 HUD geographical regions. The RDD factors are used to update the 
base year estimates for all FMR areas that do not have their own local 
CPI survey.

FY 1996 FMRs

    This document proposes revised FMRs that reflect estimated 40th 
percentile rent levels trended to April 1, 1996. The FMRs have been 
calculated separately for each bedroom size category based on 1990 
Census data. For most FMR areas, the ratios developed from the Census 
for that area were applied to the two-bedroom FMR estimate to derive 
the FMRs for the other bedroom size categories. Exceptions have been 
made for areas with local bedroom size rent intervals below an 
acceptable range. For those areas the bedroom size intervals selected 
were the minimums determined after outliers had been excluded from the 
distribution of bedroom ratios for all metropolitan areas. Higher 
ratios continue to be used for three-bedroom and larger size units than 
would result from using the actual market relationships. This is done 
to assist the largest, most difficult to house families in finding 
program-eligible units.

RDD Surveys

    RDD surveys are used to obtain statistically-reliable FMR estimates 
for selected FMR areas. This survey technique involves drawing random 
samples of renter units occupied by recent movers. RDD surveys exclude 
public housing units, units built in the past two years, seasonal 
units, non-cash rental units, and those owned by relatives. A HUD 
analysis has shown that the slight downward RDD survey bias caused by 
including some rental units that are in substandard condition is almost 
exactly offset by the slight upward bias that results from surveying 
only units with telephones.
    On average, about 8,000 telephone numbers need to be contacted to 
achieve the target survey sample level of at least 400 eligible 
responses. RDD surveys have a high degree of statistical accuracy; 
there is a 95 percent likelihood that the recent mover rent estimates 
developed using this approach are within 3 to 4 percent of the actual 
rent value. Virtually all of the estimates will be within 5 percent of 
the actual value.
    Since last year's proposed FMRs were published (the FY 1995 
proposed FMRs were published on June 23, 1994), HUD has conducted 39 
additional RDD surveys. Based on the results of these surveys, 
increased FMRs were made effective for 14 FMR areas in the separate 
Notice announcing the final FY 1995 FMRs. Today's Notice proposes 
reduced FMRs for the other 25 areas listed as follows:

Atlantic-Cape May, NJ
Bergen-Passaic, NJ
Bridgeport, CT
Dayton-Springfield, OH
Evansville-Henderson, IN-KY
Fitchburg-Leominster, MA
Fort Lauderdale, FL
Hartford, CT
Honolulu, HI
Jackson, MS
Jersey City, NJ
Las Vegas, NV
Miami, FL
Middlesex-Somerset-Hunterdon, NJ
Modesto, CA
Monmouth-Ocean, NJ
Newark, NJ
Omaha, NE-IA
Salinas, CA
Santa Rosa, CA
Stamford, CT
Trenton, NJ
Vallejo-Fairfield-Napa, CA
Ventura, CA
West Palm Beach-Boca Raton, FL

AHS Areas

    AHSs cover the largest metropolitan areas on a four-year cycle, 
encompassing nearly half of the nation's rental housing stock. The 40th 
percentile rents for these areas are calculated from the distributions 
of two-bedroom units occupied by recent movers. Public housing units, 
newly constructed units and units that fail a housing quality test are 
excluded from the rental housing distributions before the FMRs are 
calculated. The proposed FY 1996 FMRs incorporate the results of the 
1993 AHSs. Based on the survey results, the FMRs for 6 of these areas 
are being proposed with decreases in today's Notice:

Boston, MA-NH
Oakland, CA
San Jose, CA
San Francisco, CA
Tampa-St. Petersburg-Clearwater, FL
Washington, DC-MD-VA-WV

    The AHS results for Detroit, MI and Minneapolis-St. Paul, MN-WI, 
indicated that no change was warranted in the baseline FMRs. These two 
areas, therefore, had their FMRs updated in the normal manner.

New MSAs

    This notice includes proposed FMRs for two new metropolitan FMR 
areas based on new metropolitan area definitions made effective by OMB 
on June 30, 1995:

--Grand Junction, CO MSA, which consists of Mesa County; and
--Flagstaff, AZ which consists of Coconino County AZ. The MSA consists 
of Coconino and Kane County, Utah. HUD has determined, however, that 
the Flagstaff FMR area shall consist only of Coconino County AZ. The 
Utah County of Kane is so far removed from the Flagstaff area that it 
is not considered to be part of the housing market area. Kane County 
therefore is identified as a separate metropolitan FMR area under the 
State of Utah listing.
IV. State Minimum FMRs

    In response to numerous public inquiries expressing concern that 
the FMRs in rural areas are too low to operate the program 
successfully, HUD is proposing to implement a new minimum FMR policy. 
The new policy would establish the FMRs at the higher of the local FMR 
or the State-wide average FMR of nonmetropolitan counties, subject to a 
ceiling rent cap of $450 on the nonmetropolitan State averages. In 
proposing this change, HUD is recognizing the difficulty that small 
PHAs in lightly populated rural areas have in developing valid FMR 
appeals and the concern that their FMRs may be affected by small sample 
sizes and a higher incidence of substandard housing and assisted 
housing with below market rents.
    The procedure for setting minimum FMRs now in effect has increased 
the FMRs for areas with fewer than 100 Census interview cases to the 
level of the county in the State with the lowest rent of all counties 
with 100 or more cases. The proposed new procedure to establish FMR 
minimums using the State nonmetropolitan averages would raise the 
minimums considerably above those currently in effect for many 
nonmetropolitan counties. A small number of metropolitan FMR areas also 
would have their FMRs increased. There is precedent for this procedure 
in that HUD already is required by law to use nonmetropolitan State 
median family income averages to set the income limits for the 
Department's assisted housing programs, including the Section 8 
Existing program.

V. FMRs for Puerto Rico

    HUD is in the process of re-benchmarking the FMRs for Puerto Rico. 
While the current FMRs are higher than indicated by the 1990 Census, 
there is concern that strict reliance on the Census data to establish 
the FMRs may 

[[Page 42292]]
not be appropriate because the housing quality measures for Puerto Rico 
are inadequate. To obtain additional information on this matter, HUD 
conducted specially designed RDD surveys of the San Juan, Mayaguez and 
Caugas FMR areas. These surveys were modified by adding housing quality 
questions to account for the greater incidence of substandard rental 
housing in Puerto Rico. The surveys of San Juan and Caugas found FMR 
estimates higher than 1990 Census-based estimates, but lower than the 
current FMRs. The results of the Mayaguez survey suggested that the 
current FMRs were correct.
    Based on the RDD survey results, HUD is proposing reduced FMRs for 
the San Juan and Caugas areas and a small increase reflecting the 
normal inflation adjustment for the Mayaguez area. Pending completion 
of the scheduled RDDs, the FMRs for the Arecibo, Aguadilla, and Ponce 
areas are being proposed with changes similar to those indicated by RDD 
results of the areas in Puerto Rico with comparable rents. The FMRs of 
the nonmetropolitan FMR areas are being held at the current levels, 
except for Isabella and Quebradillas Municipios, which, because they 
are no longer part of a metropolitan area, have their FMRs proposed at 
levels consistent with the other nonmetropolitan areas.
    Because the surveys confirmed the concern about the accuracy of the 
FMRs for Puerto Rico, HUD has decided to conduct additional RDD surveys 
of the three other metropolitan FMR areas--Arecibo, Aguadilla, and 
Ponce--and of the nonmetropolitan areas. Results of these surveys will 
be available in time to be incorporated into the second final 
publication of the FY 1996 FMRs.

VI. Manufactured Home Space FMRs

    Manufactured home space FMRs are 30 percent of the applicable 
Section 8 Rental Certificate program FMR for a two-bedroom unit. HUD 
accepts public comments requesting modifications of these FMRs where 
they are thought to be inadequate to run the program. In order to be 
accepted as a basis for revising the FMRs, such comments must contain 
statistically valid survey data that show the 40th percentile space 
rent (excluding the cost of utilities) for the entire FMR area. This 
program uses the same FMR area definitions as the Section 8 Rental 
Certificate program. Manufactured home space FMR revisions are 
published as final FMRs in Schedule D. Once approved, the revised 
manufactured home space FMRs establish new base year estimates that are 
updated annually using the same data used to update the Rental 
Certificate program FMRs.

VII. FMRs for Federal Disaster Areas

    Under the authority granted in 24 CFR part 899, the Secretary finds 
good cause to waive the regulatory requirements that govern requests 
for geographic area FMR exceptions for areas that are declared disaster 
areas by the Federal Emergency Management Agency (FEMA) during FY 1996. 
HUD is prepared to grant disaster-related exceptions up to 10 percent 
above the applicable FMRs. HUD field offices are authorized to approve 
such exceptions for: (1) single-county FMR areas and for individual 
county parts of multi-county FMR areas that qualify as disaster areas 
under the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act; if (2) the PHA certifies that damage to the rental housing stock 
as a result of the disaster is so substantial that it has increased the 
prevailing rent levels in the affected area. Such exceptions must be 
requested in writing by the responsible PHAs. Once approved by HUD, 
they will remain in effect until superseded by the publication of the 
final FY 1998 FMRs.

VIII. Request for Comments

    HUD seeks public comments on FMR levels for specific areas. 
Comments on FMR levels must include sufficient information (including 
local data and a full description of the rental housing survey 
methodology used) to justify any proposed changes. Changes may be 
proposed in all or any one of the bedroom-size categories on the 
schedule. Recommendations and supporting data must reflect the rent 
levels that exist within the entire FMR area.
    The Department also seeks comments on the proposal to establish 
State minimum FMRs at the State-wide average of FMRs for 
nonmetropolitan counties, subject to a maximum ceiling rent of $450. 
This proposal may be subject to change, based on further analysis and 
public comments.
    HUD recommends use of professionally-conducted Random Digit Dialing 
(RDD) telephone surveys to test the accuracy of FMRs for areas where 
there is a sufficient number of Section 8 units to justify the survey 
cost of $10,000-$12,000. Areas with 500 or more program units usually 
meet this criterion, and areas with fewer units may meet it if the 
actual two-bedroom FMR rent standard is significantly different than 
that proposed by HUD. In addition, HUD has developed a version of the 
RDD survey methodology for smaller, nonmetropolitan PHAs. This 
methodology is designed to be simple enough to be done by the PHA 
itself, rather than by professional survey organizations, at a cost of 
$5,000 or less.
    PHAs in nonmetropolitan areas may, in certain circumstances, do 
surveys of groups of counties. All grouped county surveys must be 
approved in advance by HUD. PHAs are cautioned that the resultant FMRs 
will not be identical for the counties surveyed; each individual FMR 
area will have a separate FMR based on its relationship to the combined 
rent of the cluster of FMR areas.
    PHAs that plan to use the RDD survey technique may obtain a copy of 
the appropriate survey guide by calling HUD USER on 1-800-245-2691. 
Larger PHAs should request ``Random Digit Dialing Surveys; A Guide to 
Assist Larger Public Housing Agencies in Preparing Fair Market Rent 
Comments.'' Smaller PHAs should obtain ``Rental Housing Surveys; A 
Guide to Assist Smaller Public Housing Agencies in Preparing Fair 
Market Rent Comments.''
    HUD prefers, but does not mandate, the use of RDD telephone 
surveys, or the more traditional method described in the small PHA 
survey guide. Other survey methodologies are acceptable as long as the 
surveys submitted provide statistically reliable, unbiased estimates of 
the 40th percentile gross rent. Survey samples should preferably be 
randomly drawn from a complete list of rental units for the FMR area. 
If this is not feasible, the selected sample must be drawn so as to be 
statistically representative of the entire rental housing stock of the 
FMR area. In particular, surveys must include units of all rent levels 
and be representative by structure type (including single-family, 
duplex and other small rental properties), age of housing unit, and 
geographic location. The decennial Census should be used as a starting 
point and means of verification for determining whether the sample is 
representative of the FMR area's rental housing stock.
    Local rental housing surveys conducted with alternative methods 
must include the same type of documentation required of the RDD 
surveys. Specifically, PHA submissions must include:

--Identification of the 40th percentile gross rents (gross rent is rent 
including the cost of utilities) and the actual distribution (or 
distributions if more than one bedroom size is surveyed) of the 
surveyed units rank ordered by gross rent.
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[[Page 42293]]
copy of the survey questionnaire, transmittal letter, and any publicity 
materials.
--An explanation of how the contract rents of the individual units 
surveyed were converted to gross rents. (For RDD surveys HUD requires 
use of the Section 8 utility allowance schedule.)
--An explanation of how the survey excluded units built within two 
years prior to the survey date.
--The date the rent data were collected so that HUD can apply a 
trending factor to update the estimate to April 1, 1996. If the survey 
has already been trended to this date, the date the survey was 
conducted and a description of the trending factor used.
--Copies of all survey sheets.
    Since FMRs are based on standard quality units and units occupied 
by recent movers, both of which are difficult to identify and survey, 
HUD will accept surveys of all rental units and apply appropriate 
adjustments.
    Most surveys cover only two-bedroom units, in which case HUD will 
make the adjustments for other size units consistent with the 
differentials established on the basis of the 1990 Census data for the 
FMR area. When three- and four-bedroom units are surveyed separately to 
determine FMRs for these unit size categories, the commenter should 
multiply the 40th percentile survey rents by 1.087 and by 1.077, 
respectively, to determine the FMRs. The use of these factors will 
produce the same upward adjustments in the rent differentials as those 
used in the HUD methodology.

IX. Other Matters

    A Finding of No Significant Impact with respect to the environment 
as required by the National Environmental Policy Act (42 U.S.C. 4321-
4374) is unnecessary, since the Section 8 Rental Certificate program is 
categorically excluded from the Department's National Environmental 
Policy Act procedures under 24 CFR 50.20(d).
    The undersigned, in accordance with the Regulatory Flexibility Act 
(5 U.S.C. 605(b)), hereby certifies that this Notice does not have a 
significant economic impact on a substantial number of small entities, 
because FMRs do not change the rent from that which would be charged if 
the unit were not in the Section 8 program.
    The General Counsel, as the Designated Official under Executive 
Order No. 12606, The Family, has determined that this Notice will not 
have a significant impact on family formation, maintenance, or well-
being. The Notice amends Fair Market Rent schedules for various Section 
8 assisted housing programs, and does not affect the amount of rent a 
family receiving rental assistance pays, which is based on a percentage 
of the family's income.
    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order No. 12611, Federalism, has determined that this 
Notice will not involve the preemption of State law by Federal statute 
or regulation and does not have Federalism implications. The Fair 
Market Rent schedules do not have any substantial direct impact on 
States, on the relationship between the Federal government and the 
States, or on the distribution of power and responsibility among the 
various levels of government.
    The Catalog of Federal Domestic Assistance program number is 
14.156, Lower-Income Housing Assistance Program (section 8).
    Accordingly, the Fair Market Rent Schedules, which will be codified 
in 24 CFR Part 888, are amended as follows:

    Dated: August 4, 1995.
 Henry G. Cisneros,
Secretary.
Fair Market Rents for the Section 8 Housing Assistance Payments Program

Schedules B and D--General Explanatory Notes

1. Geographic Coverage
    a. The FMRs shown in Schedule B incorporate the Office of 
Management and Budget's (OMB) most current definitions of metropolitan 
areas (with the exceptions discussed in paragraph b). HUD uses the OMB 
Metropolitan Statistical Area (MSA) and Primary Metropolitan 
Statistical Area (PMSA) definitions for FMR areas because they closely 
correspond to housing market area definitions. FMRs are housing market-
wide rent estimates that are intended to provide housing opportunities 
throughout the geographic area in which rental housing units are in 
direct competition.
    b. The exceptions are counties deleted from seven large 
metropolitan areas whose revised OMB definitions were determined by HUD 
to be larger than the housing market areas. The FMRs for the following 
counties (shown by the metropolitan area) are calculated separately and 
are shown in Schedule B within their respective States under the 
``Metropolitan FMR Areas'' listing:
Metropolitan Area and Counties Deleted
Atlanta, GA--Carroll, Pickens, and Walton Counties.
Chicago, IL--DeKalb, Grundy and Kendall Counties.
Cincinnati-Hamilton, OH-KY-IN--Brown County, Ohio; Gallatin, Grant and 
Pendleton Counties in Kentucky; and Ohio County, Indiana.
Dallas, TX--Henderson County.
Lafayette, LA--St. Landry and Acadia Parishes.
New Orleans, LA--St. James Parish.
Washington, DC--Berkeley and Jefferson Counties in West Virginia; and 
Clarke, Culpepper, King George and Warren counties in Virginia.

    c. FMRs also are established for nonmetropolitan counties and for 
county equivalents in the United States, for nonmetropolitan parts of 
counties in the New England states and for FMR areas in Puerto Rico, 
the Virgin Islands, and the Pacific Islands.
    d. FMRs for the areas in Virginia shown in the table below were 
established by combining the Census data for the nonmetropolitan 
counties with the data for the independent cities that are located 
within the county borders. Because of space limitations, the FMR 
listing in Schedule B includes only the name of the nonmetropolitan 
county. The complete definitions of these areas including the 
independent cities are as follows:

Virginia Nonmetropolitan County FMR Area and Independent Cities Included
------------------------------------------------------------------------
              County                               Cities               
------------------------------------------------------------------------
Allegheny........................  Clifton Forge and Covington          
Augusta..........................  Staunton and Waynesboro              
Carroll..........................  Galax                                
Frederick........................  Winchester                           
Greensville......................  Emporia                              
Halifax..........................  South Boston                         
Henry............................  Martinsville                         
Montgomery.......................  Radford                              
Rockbridge.......................  Buena Vista and Lexington            
Rockingham.......................  Harrisonburg                         
Southhampton.....................  Franklin                             
Wise.............................  Norton                               
------------------------------------------------------------------------

    e. FMRs for Section 8 manufactured home spaces are 30 percent of 
the two-bedroom Section 8 Rental Certificate program FMRs, with the 
exception of the areas listed in Schedule D whose manufactured home 
space FMRs have been revised on the basis of public comments. Once 
approved, the revised manufactured home space FMRs establish new base-
year estimates that are updated annually using the same data used to 
estimate the Rental Certificate program FMRs. The FMR area definitions 
used for manufactured home spaces are the same as for the Section 8 
Certificate program.
2. Arrangement of FMR Areas and Identification of Constituent Parts
    a. The FMR areas in Schedule B are listed alphabetically by 
metropolitan 

[[Page 42294]]
FMR area and by nonmetropolitan county within each State. The exception 
FMRs for manufactured home spaces in Schedule D are listed 
alphabetically by State.
    b. The constituent counties (and New England towns and cities) 
included in each metropolitan FMR area are listed immediately following 
the listings of the FMR dollar amounts. All constituent parts of a 
metropolitan FMR area that are in more than one State can be identified 
by consulting the listings for each applicable State.
    c. Two nonmetropolitan counties are listed alphabetically on each 
line of the nonmetropolitan county listings.
    d. The New England towns and cities included in a nonmetropolitan 
part of a county are listed immediately following the county name.
    e. The FMRs are listed by dollar amount on the first line beginning 
with the FMR area name.

BILLING CODE 4210-32-P

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[FR Doc. 95-19836 Filed 8-14-95; 8:45 am]
BILLING CODE 4210-32-P