[Federal Register Volume 73, Number 22 (Friday, February 1, 2008)]
[Notices]
[Pages 6197-6198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1911]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5152-N-03]


Final Fair Market Rents for the Housing Choice Voucher Program 
and Moderate Rehabilitation Single Room Occupancy Program for Fiscal 
Year 2008; Revised for Selected Areas

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of Final Fair Market Rents (FMRs) for Fiscal Year 2008, 
Update.

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SUMMARY: This notice updates the FMRs for Gulfport-Biloxi, MS, and 
Pascagoula, MS, to accommodate continuing rental market impacts of 
Hurricane Katrina.

EFFECTIVE DATE: February 1, 2008.

FOR FURTHER INFORMATION CONTACT: For technical information on the 
methodology used to develop FMRs or a listing of all FMRs, please call 
the HUD USER information line at (800) 245-2691 or access the 
information on the HUD Web site, http://www.huduser.org/datasets/fmr.html. Any questions related to use of FMRs or voucher payment 
standards should be directed to the respective local HUD program staff. 
Questions on how to conduct FMR surveys or further methodological 
explanations may be addressed to Marie L. Lihn or Lynn A. Rodgers, 
Economic and Market Analysis Division, Office of Economic Affairs, 
Office of Policy Development and

[[Page 6198]]

Research, telephone (202) 708-0590. Questions about disaster-related 
FMR exceptions should be referred to the respective local HUD office. 
Persons with hearing or speech impairments may access this number 
through TTY by calling the toll-free Federal Information Relay Service 
at (800) 877-8339. (Other than the HUD USER information line and TTY 
numbers, telephone numbers are not toll-free.)

Background

    The coastal Mississippi rental housing markets identified in this 
notice experienced enormous impacts from Hurricane Katrina, with the 
loss of many rental housing units. On December 1, 2007, HUD took over 
day-to-day management of rental assistance payments for the 28,000 
households in rental housing still displaced due to Hurricanes Katrina 
and Rita. Beginning January 2008, HUD will begin working with FEMA to 
transition eligible families out of travel trailers and into rental 
housing in the private market.
    On March 1, 2008, the level of subsidy will begin to be reduced, 
which will gradually lead families toward independence. Program 
participants will pay a portion of the cost, which will begin at $50 
per month and incrementally increase each month thereafter until the 
program concludes on March 1, 2009. Residents in the program will also 
receive case management services coordinated by PHAs to help them get 
back on their feet, including financial education, job training or 
other social services.
    Families and individuals in the program will be given complete 
information, supportive services, resources and ample time to prepare 
themselves for the end of temporary, subsidized housing. Seniors and 
the disabled whose primary source of income is Supplemental Security 
Income or other fixed income that make them eligible to receive 
assistance under existing HUD programs will be protected. HUD, through 
its network of PHAs, will actively work to transition these individuals 
into its existing programs.
    Although new rental stock is being built in the affected areas, it 
will take some time for sufficient numbers of units to be completed to 
stabilize the market. Many single-family homes in the Gulfport-Biloxi, 
MS, and Pascagoula, MS, areas that accepted vouchers were wiped out by 
Katrina and have not been rebuilt. The tight rental market has 
significantly increased pressure on rents in these two areas of 
Mississippi. High hazard insurance rates have sharply increased 
homeowners' and landlords' monthly insurance costs. Although the state 
has provided the State Wind Pool insurance to provide coverage to 
owners, this insurance is often two-to-three times higher than what was 
previously paid.
    American Community Survey data for 2006 show that rents in these 
areas have increased substantially since 2005. These results are 
supported by extensive field work by HUD economists who have been 
researching local market conditions. In order to ensure the successful 
operation of HUD's regular voucher program as well as HUD's new 
responsibilities under the expanded Disaster Housing Assistance Program 
on the Mississippi Gulf Coast, HUD is increasing the Gulfport-Biloxi 
and Pascagoula fiscal year (FY) 2008 FMRs by 20 percent, effective 
immediately. The FMR increases provided, in combination with the 
continuation of flexibility for Public Housing Authorities to set 
payment standards up to 120 percent of FMR without HUD approval, are 
believed adequate to reflect current market circumstances and should 
cover at least part of the expected additional rent increases 
anticipated this year. The Department will continue to monitor this 
situation and modify FMRs if significant further rent increases occur.
    The FY2008 FMRs for the affected areas are increased as follows:

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                                                                             Number of bedrooms
               2008 Fair market rent areas                ------------------------------------------------------
                                                               0          1          2          3          4
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Gulfport-Biloxi, MS MSA..................................       $655       $695       $811     $1,057     $1,086
Pascagoula, MS MSA.......................................        563        643        773      1,064      1,141
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    Dated: January 25, 2008.
Darlene F. Williams,
Assistant Secretary for Policy Development and Research.
[FR Doc. E8-1911 Filed 1-31-08; 8:45 am]
BILLING CODE 4210-67-P