[Federal Register Volume 87, Number 169 (Thursday, September 1, 2022)]
[Notices]
[Pages 53761-53773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18905]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6343-N-01]
Fair Market Rents for the Housing Choice Voucher Program,
Moderate Rehabilitation Single Room Occupancy Program, and Other
Programs, Fiscal Year 2023
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, Department of Housing and Urban Development, HUD.
ACTION: Notice of Fiscal Year (FY) 2023 Fair Market Rents (FMRs).
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SUMMARY: The United States Housing Act of 1937 (USHA), as amended by
the Housing Opportunities Through Modernization Act of 2016 (HOTMA),
requires the Secretary to publish FMRs not less than annually, adjusted
to be effective on October 1 of each year. This notice announces the
availability of FY 2023 FMRs, describes the methods used to calculate
the FY 2023 FMRs, responds to comments submitted on the notice of
Proposed Changes to the Methodology Used for Calculating Fair Market
Rents, and enumerates the procedures for Public Housing Agencies (PHAs)
and other interested parties to request reevaluations of their FMRs as
required by HOTMA.
DATES:
Comment Due Date: October 3, 2022.
FY 2023 Fair Market Rents Effective Date: October 1, 2022, unless
HUD receives a valid request for reevaluation of specific area FMRs as
described below.
ADDRESSES: HUD invites interested persons to submit comments regarding
the FMRs and to request reevaluation of the FY 2023 FMRs.
Communications must refer to the above docket number and title and
should contain the information specified in the ``Request for Public
Comments and FMR Reevaluations'' section. There are two methods for
submitting public comments:
1. Electronic Submission of Comments. Interested persons may submit
comments or reevaluation requests electronically through the Federal
eRulemaking Portal at https://www.regulations.gov. HUD strongly
encourages commenters to submit comments or reevaluation requests
electronically. Electronic submission of comments or reevaluation
requests allows the author maximum time to prepare and submit a comment
or reevaluation request, ensures timely receipt by HUD, and enables HUD
to make them immediately available to the public. Comments or
reevaluation requests submitted electronically through the https://www.regulations.gov website can be viewed by other submitters and
interested members of the public. Commenters or reevaluation requestors
should follow instructions provided on that site to submit comments or
reevaluation requests electronically.
2. Submission of Comments by Mail. Members of the public may submit
comments or requests for reevaluation by mail to the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500.
Due to security measures at all federal agencies, however, submission
of comments by standard mail often results in delayed delivery. To
ensure timely receipt of comments or reevaluation requests, HUD
recommends that comments or requests submitted by standard mail be
submitted at least two weeks in advance of the deadline. HUD will make
all comments or reevaluation requests received by mail available to the
public at https://www.regulations.gov.
Note: To receive consideration as public comments or
reevaluation requests, comments or requests must be submitted
through one of the two methods specified above. Again, all
submissions must refer to the docket number and title of the notice.
No Facsimile Comments or Reevaluation Requests. HUD does not accept
facsimile (FAX) comments or requests for FMR reevaluation.
FOR FURTHER INFORMATION CONTACT: Questions on this notice may be
addressed to Adam Bibler, Director, Program Parameters and Research
Division, Office of Economic Affairs, Office of Policy Development and
Research, HUD Headquarters, 451 7th Street SW, Room 8208, Washington,
DC 20410, telephone number (202)-402-6057; or via email at
[email protected]. Persons with hearing or speech impairments may access HUD
numbers through TTY by calling the Federal Relay Service at 800-877-
8339 (toll-free number). 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
USER website at https://www.huduser.gov/portal/datasets/fmr.html.
Questions related to the use of FMRs or voucher payment standards
should be directed to the respective local HUD program staff or the
Office of Public and Indian Housing Customer Service Center at https://www.hud.gov/program_offices/public_indian_housing/about/css. Questions
on how to conduct FMR surveys may be addressed to the electronic
mailbox for the Program Parameters and Research Division at
[email protected].
Electronic Data Availability. This Federal Register notice and
files containing FMR values will be available electronically from the
HUD User page at https://www.huduser.gov/portal/datasets/fmr.html.
Federal Register notices also are available electronically from https://www.federalregister.gov/, the U.S. Government Printing Office website.
Complete documentation of the methods and data used to compute each
area's FY 2023 FMRs is available at https://www.huduser.gov/portal/datasets/fmr.html#2023_query. FY 2023 FMRs are available in a variety
of electronic formats at https://www.huduser.gov/portal/datasets/fmr.html, including in PDF and Microsoft Excel. Small Area FMRs for all
metropolitan FMR areas are available in Microsoft Excel format at:
https://www.huduser.gov/portal/datasets/fmr/smallarea/index.html. For
informational purposes, HUD also publishes 50th percentile rents for
all FMR areas at https://www.huduser.gov/portal/datasets/50per.html.
SUPPLEMENTARY INFORMATION: Section 8(c)(1) of the United States Housing
Act of 1937 (USHA), as amended by the Housing Opportunities Through
Modernization Act of 2016 (HOTMA), requires the Secretary to publish
FMRs not less than annually, adjusted to be effective on October 1 of
each year.
I. Background
Section 8 of the USHA (42 U.S.C. 1437f) authorizes housing
assistance to aid lower-income families in renting safe and decent
housing. Housing assistance payments are limited by FMRs established by
HUD for different geographic areas. In the Housing Choice Voucher (HCV)
program, the FMR is the basis for determining the ``payment standard
amount'' used to calculate the maximum monthly subsidy for an assisted
family. See 24 CFR 982.503. HUD also uses the FMRs to determine initial
renewal rents for some expiring
[[Page 53762]]
project-based Section 8 contracts, initial rents for housing assistance
payment contracts in the Moderate Rehabilitation Single Room Occupancy
program, rent ceilings for rental units in both the HOME Investment
Partnerships program and the Emergency Solution Grants program,
calculation of maximum award amounts for Continuum of Care recipients
and the maximum amount of rent a recipient may pay for property leased
with Continuum of Care funds, and calculation of flat rents in Public
Housing units. In general, the FMR for an area is the amount that a
tenant would need to pay the gross rent (shelter rent plus utilities)
of privately owned, decent, and safe rental housing of a modest (non-
luxury) nature with suitable amenities. The FMR is also used to
determine the Performance Based Contract Administration Fee in
Multifamily Housing. HUD's FMR calculations represent HUD's best effort
to estimate the 40th percentile gross rent \1\ paid by recent movers
into standard quality units in each FMR area. In addition, all rents
subsidized under the HCV program must meet reasonable rent standards.
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\1\ HUD also calculates and posts 50th percentile rent estimates
for the purposes of Success Rate Payment Standards as defined at 24
CFR 982.503(e) (estimates available at: https://www.huduser.gov/portal/datasets/50per.html).
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On July 13, 2022, HUD published a notice of Proposed Changes to the
Methodology Used for Calculating Fair Market Rents.\2\ For FY 2023
FMRs, HUD is implementing the two proposed changes described in that
notice. The first affects how HUD determines the ``recent mover
adjustment factor'' to meet its regulatory objective of setting the FMR
from the distribution of rental units occupied by recent movers. The
second change affects how HUD inflates the recent mover rent to the
most recent full calendar year using a Gross Rent Inflation Adjustment
Factor. The methodology used in each of these steps is described in
more detail in the following section and will apply only to FY 2023
FMRs.
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\2\ 87 FR 41739.
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II. Procedures for the Development of FMRs
Section 8(c)(1) of the USHA,\3\ as amended by HOTMA (Pub. L. 114-
201, enacted July 29, 2016), requires the Secretary of HUD to publish
FMRs not less than annually. Section 8(c)(1)(A) states that each FMR
``shall be adjusted to be effective on October 1 of each year to
reflect changes, based on the most recent available data trended so the
rentals will be current for the year to which they apply. . . .''
Section 8(c)(1)(B) requires that HUD publish, not less than annually,
new FMRs on the World Wide Web or in any other manner specified by the
Secretary, and that HUD must also notify the public of when it
publishes FMRs by Federal Register notice. After notification, the FMRs
``shall become effective no earlier than 30 days after the date of such
publication,'' and HUD must provide a procedure for the public to
comment and request a reevaluation of the FMRs in a jurisdiction before
the FMRs become effective. Consistent with the statute, HUD is issuing
this notice to notify the public that FY 2023 FMRs are available at
https://www.huduser.gov/portal/datasets/fmr.html and will become
effective on October 1, 2022. This notice also provides procedures for
FMR reevaluation requests.
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\3\ 42 U.S.C. 1437f.
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III. FMR Methodology
This section provides a brief overview of how HUD computes the FY
2023 FMRs. For complete information on how HUD derives each area's
FMRs, see the online documentation at https://www.huduser.gov/portal/datasets/fmr.html#2023_query.
A. Geographic Area Definitions
The FY 2023 FMRs are based on the updated metropolitan area
definitions published by the Office of Management and Budget (OMB) on
September 14, 2018 and first incorporated by the Census Bureau into the
2019 American Community Survey (ACS) data, and the corresponding FY
2022 FMRs. The FY 2023 FMRs include two newly created non-metropolitan
county-equivalents in Alaska: Chugach Census Area and Copper River
Census Area; and the corresponding abolishment of the Valdez-Cordova
Census Area, AK.
B. Base Year Rents
For FY 2023 FMRs, HUD uses the U.S. Census Bureau's 5-year ACS data
collected between 2016 and 2020 as the ``base rents'' for the FMR
calculations. These data are the most current ACS data available at the
time that HUD calculates the FY 2023 FMRs. HUD pairs a ``margin of
error'' test \4\ with an additional requirement based on the number of
survey observations supporting the estimate to improve the statistical
reliability of the ACS data used in the FMR calculations. The Census
Bureau does not provide HUD with an exact count of the number of
observations supporting the ACS estimate; rather, the U.S. Census
Bureau provides HUD with categories of the number of survey responses
underlying the estimate, including whether the estimate is based on
more than 100 observations. Using these categories, HUD requires that,
in addition to the ``margin of error'' test, ACS rent estimates must be
based on at least 100 observations to be used as base rents.
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\4\ HUD's margin of error test requires that the margin of error
of the ACS estimate is less than half the size of the estimate
itself.
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For areas in which the 5-year ACS data for two-bedroom, standard
quality gross rents do not pass the statistical reliability tests
(i.e., have a margin of error ratio greater than 50 percent or fewer
than 100 observations), HUD will use an average of the base rents over
the three most recent years \5\ (provided that there is data available
for at least two of these years),\6\ or if such data are not available,
using the two-bedroom rent data within the next largest geographic
area. For a metropolitan subarea, the next largest area is its
containing metropolitan area. For a non-metropolitan area, the next
largest area is the state non-metropolitan portion.
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\5\ For FY 2023, the three years of ACS data in question are
2018, 2019 and 2020. HUD adjusts the 2018 and 2019 data to be
denominated in 2020 dollars using the growth in Consumer Price Index
(CPI)-based gross rents measured between 2018 and 2020.
\6\ To be used in the three-year average calculation, the 5-year
estimates must be minimally statistically qualified; that is, the
margin of error of the estimates must be less than half the size of
the estimate.
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C. Measures of Rent Inflation Calculated From Private-Sector Data
As described in the following sections, HUD attempts to make the
FMRs ``as of'' the current fiscal year by accounting for inflation from
the vintage of the ACS estimates to the present. In previous years, HUD
has only used rent inflation as measured by the Consumer Price Index,
as reported by the Bureau of Labor Statistics. In its calculation of FY
2023 FMRs, however, HUD is using the CPI in conjunction with measures
of rent as reported by several private companies to better capture
local rent inflation dynamics, as the CPI is only available at the
metropolitan level for the nation's largest metropolitan areas. The
measures of rent used by HUD are the RealPage (formerly Axiometrics)
average effective rent per unit, Moody's Analytics REIS average market
rent, CoStar Group average effective rent, CoreLogic, Inc. single-
family combined 3-bedroom median rent, ApartmentList Rent Estimates,
and Zillow Observed Rent Index.
In calculating a measure of inflation from these data, HUD first
takes the annual average of each statistic, then its year-to-year
change. HUD then takes the
[[Page 53763]]
mean of changes from all available sources for each area. Next, HUD
takes an average of this private-sector measure of rent inflation with
rent inflation as captured by the CPI for the area, where the private-
sector measure is weighted at 60 percent and the CPI rent inflation
measure is weighted at 40 percent. Finally, HUD averages the result of
this step with the year-to-year change in the CPI housing fuels and
utilities index for the area in order to make the resulting inflation
measure reflective of gross rents.
D. Recent-Mover Factors
Following the assignment of the standard quality two-bedroom rent
described above, HUD applies a recent-mover factor to these rents. HUD
traditionally calculates the recent-mover factor as the change between
the 5-year ACS standard quality two-bedroom gross rent and the 1-year
ACS recent mover gross rent for the recent mover factor area. HUD has
changed the calculation of the FY 2023 recent mover factor from
previous years due to the unavailability of ACS2020 1-year estimates.
The U.S. Census Bureau did not release standard 1-year estimates from
the 2020 American Community Survey (ACS) due to the impacts of the
COVID-19 pandemic on data collection.
To replace missing 2020 ACS 1-year rent data, HUD uses a multi-
prong approach. While the U.S. Census Bureau will not provide 1-year
tabulations of 2020 ACS data at the FMR-area level, the U.S. Census
Bureau does provide a special tabulation of the 5-year ACS data for
2020 of the rents paid for standard quality units by persons who moved
into their units in 2019 and 2020 and responded to the 2019 or 2020 ACS
surveys. This differs from the usual recent mover tabulation of 1-year
ACS data as in the regular tabulation, in which all respondents come
from a single ACS year and are included if they had moved into their
unit during the prior 2 years. While the 40th percentile rents
estimated from these two samples are similar, the estimates from the 5-
year ACS sample tend to be slightly lower than those from the usual 1-
year tabulations.
To correct for the tendency for the recent mover estimate derived
from ACS 5-year data to be lower than that derived from ACS one-year
data, as well as any error that may be introduced by relying heavily on
the part of the 5-year ACS collected in 2020, HUD takes the average of
the recent mover factor calculated with 2019 1-year ACS recent mover
rent inflated by the 2019-2020 gross rent change, and the recent mover
factor from the 2020 5-year ACS recent mover rent. HUD calculates the
2019-2020 gross rent change in different ways depending on the
availability of data. For example, in areas where private sources of
rental data provide sufficient coverage (3 or more sources), HUD uses
the composite private sector and CPI inflation measure described in the
previous section. For areas without private data coverage, HUD uses the
2019-2020 gross rent CPI change.
The ACS rent estimates used in the recent mover factor calculation
must meet the same statistical quality checks used in evaluating the
base rent estimate, specifically, it must have a margin of error of
less than half the estimate, and a sample size of at least 100 survey
cases. If an area's recent mover estimate does not meet these criteria,
HUD uses the estimate for the next larger area of geography containing
the FMR area.
HUD does not allow recent-mover factors to lower the standard
quality base rent; therefore, the recent mover factor cannot be less
than 1. Applying the recent-mover factor to the standard quality base
rent produces an ``as of'' 2020 recent mover two-bedroom gross rent for
the FMR area.
E. Other Rent Survey Data
HUD calculates base rents for the insular areas using data
collected during the 2010 decennial census of American Samoa, the
Northern Mariana Islands, and the Virgin Islands beginning with the FY
2016 FMRs.\7\ HUD updates the 2010 base year data to 2020 using the
growth in national ACS data for the FY 2023 FMRs. Note that while the
2010 decennial census also included Guam, HUD uses the result of a more
recent rent survey in calculating the FMRs for Guam, as discussed in
the following paragraph.
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\7\ The ACS is not conducted in the Pacific Islands (Guam,
Northern Mariana Islands and American Samoa) or the US Virgin
Islands. As part of the 2010 Decennial Census, the Census Bureau
conducted ``long-form'' sample surveys for these areas. HUD uses the
results gathered by this long form survey for the FY 2023 FMRs.
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HUD does not use ACS data to establish the base rent or recent-
mover factor in cases where it has locally collected survey data which
are more recent than the 2019 ACS. For larger metropolitan areas that
have valid ACS one-year recent-mover data, survey data may not be any
older than the mid-point of the calendar year for the ACS one-year
data. Since the ACS one-year data used for the FY 2023 FMRs is from
2019, larger areas with valid one-year recent mover data may not use
other survey data collected before June 30, 2019 for the FY 2023 FMRs.
Areas without statistically reliable 1-year ACS data may continue to
use local survey data until the mid-point of the 5-year ACS data is
more recent than the local survey. For FY 2023 FMRs, the following are
Metropolitan Statistical Areas (MSAs), HUD Metro FMR Areas, or non-
metropolitan counties that have FMRs based on local ad hoc surveys:
HUD uses survey data from 2018 to calculate the FMRs for
Coos County, OR; Curry County, OR; and Douglas County, OR.
HUD uses survey data from 2019 to calculate the FMRs for
Kauai County, HI; Eugene-Springfield, OR MSA; Worcester, MA HUD Metro
FMR Area; and Guam.
HUD uses survey data from 2020 to calculate the FMRs for
Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area, Knox County,
ME; Lincoln County, ME; and Waldo County, ME.
HUD uses survey data from 2021 to calculate the FMRs for
Asheville, NC HUD Metro FMR Area; Boston-Cambridge-Quincy, MA-NH HUD
Metro FMR Area; Bremerton-Silverdale, WA MSA; Iron County, UT; New
York, NY HUD Metro FMR Area; Portland, ME HUD Metro FMR Area; Portland-
Vancouver-Hillsboro, OR-WA MSA; San Diego-Carlsbad, CA MSA; Santa
Maria-Santa Barbara, CA MSA; Seattle-Bellevue, WA HUD Metro FMR Area;
and Transylvania County, NC.
HUD uses survey data from 2022 to calculate the FMRs for
Salinas, CA MSA; San Benito County, CA HUD Metro FMR Area; and Santa
Cruz-Watsonville, CA MSA.
F. Gross Rent Inflation Adjustment Factors
HUD ordinarily updates the latest ACS-based rent estimates with one
year of gross rent inflation measured with the 23 local and 4 regional
CPI components rent of primary residence and household fuels and
utilities depending on the location of the FMR area. For FY 2023, HUD
augments the CPI methodology by including available private data
sources along with CPI data in calculating a weighted average gross
rent inflation factor that is used to update the ACS-based ``as of''
2020 rent through 2021. HUD applies a weight of 60 percent to the
average of the change in private data sources and 40 percent to the
annual change in CPI gross rents. For example, in areas without Bureau
of Labor Statistics (BLS) metro CPI data but that do have a sufficient
number of private sector data sources (at least 3), the calculation of
the gross rent inflation factor includes the weighted average change in
private rent data (60 percent) along with regional CPI data (40
[[Page 53764]]
percent). In areas covered by BLS Class A metropolitan CPI data, HUD
calculates the inflation adjustment as the weighted average of changes
in rents from all available private data sources for the area (60
percent) and the change in rents measured by the metropolitan CPI (40
percent). In places without sufficient private rent data sources, the
actual inflation adjustment process using regional CPI data is
unchanged from FY 2022 and prior FMR vintages. In all cases, rent
change information is blended with CPI fuels and utilities changes to
estimate changes in gross rents.
G. Trend Factor Forecasts
Following the application of the appropriate gross rent inflation
factor, HUD trends the gross rent estimate from 2021 to FY 2023 using a
trend factor which is based on local or regional forecasts of CPI gross
rent data. HUD derived a trend factor for each Class A CPI area and
Class B/C CPI region using time series models based on national inputs
(National Input Model or NIM), local inputs (Local Input Model or LIM)
and historical values of the predicted series (Pure Time Series--PTS).
HUD chose the actual model used for each CPI area's trend factor based
on which model generates the lowest Root Mean Square Error (RMSE)
statistic and applied the trend factors to the corresponding FMR areas.
HUD established the type of model for each forecast (NIM, LIM, or PTS)
for the FY 2020 FMRs and is keeping it constant for 5 years. HUD will
reassess the model selections during the calculation of the FY 2025
FMRs. More details on the trend factor forecasts are available in the
June 5, 2019 Federal Register notice (84 FR 26141) and are available at
https://www.federalregister.gov/documents/2019/06/05/2019-11763/proposed-changes-to-the-methodology-used-for-estimating-fair-market-rents.
H. Bedroom Rent Adjustments
HUD updates the bedroom ratios used in the calculation of FMRs
annually. The bedroom ratios HUD uses in the calculation of FY 2023
FMRs are calculated from three, five-year ACS data series (2014-2018,
2015-2019, and 2016-2020). HUD only uses estimates with a margin of
error ratio of less than 50 percent. If an area does not have reliable
estimates in at least two of the previous three ACS releases, HUD uses
the bedroom ratios for the area's larger parent geography.
HUD uses two-bedroom units for its primary calculation of FMR
estimates. This is generally the most common size of rental unit and,
therefore, the most reliable to survey and analyze. After estimating
two-bedroom FMRs, HUD calculates bedroom ratios for each FMR area which
relate the prices of smaller and larger units to the cost of two-
bedroom units. To ensure an adequate distributional fit in these
bedroom ratio calculations for individual FMR areas, HUD establishes
bedroom interval ranges which set upper and lower limits for bedroom
ratios nationwide, based on an analysis of the range of such intervals
for all areas with large enough samples to permit accurate bedroom
ratio determinations.
In the calculation of FY 2023 FMR estimates, HUD sets the bedroom
interval ranges as follows: efficiency FMRs are constrained to fall
between 0.67 and 0.87 of the two-bedroom FMR; one-bedroom FMRs must be
between 0.76 and 0.89 of the two-bedroom FMR; three-bedroom FMRs (prior
to the adjustments described below) must be between 1.12 and 1.31 of
the two-bedroom FMR; and four-bedroom FMRs (again, prior to adjustment)
must be between 1.25 and 1.58 of the two-bedroom FMR. Given that these
interval ranges partially overlap across unit bedroom counts, HUD
further adjusts bedroom ratios for a given FMR area, if necessary, to
ensure that higher bedroom-count units have higher rents than lower
bedroom-count units within that area.
HUD also further adjusts the rents for three-bedroom and larger
units to reflect HUD's policy to set higher rents for these units.\8\
This adjustment is intended to increase the likelihood that the largest
families, who have the most difficulty in leasing units, will be
successful in finding eligible program units. The adjustment adds 8.7
percent to the unadjusted three-bedroom FMR estimates and adds 7.7
percent to the unadjusted four-bedroom FMR estimates.
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\8\ As mentioned above, HUD applies the interval ranges for the
three-bedroom and four-bedroom FMR ratios prior to making these
adjustments. In other words, the adjusted three- and four-bedroom
FMRs can exceed the interval ranges but the unadjusted FMRs cannot.
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HUD derives FMRs for units with more than four bedrooms by adding
15 percent to the four-bedroom FMR for each extra bedroom. For example,
the FMR for a five-bedroom unit is 1.15 times the four-bedroom FMR, and
the FMR for a six-bedroom unit is 1.30 times the four-bedroom FMR.
Similarly, HUD derives FMRs for single-room occupancy units by
subtracting 25 percent from the zero-bedroom FMR (i.e., they are set at
0.75 times the zero-bedroom (efficiency) FMR).\9\
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\9\ As established in the interim rules implementing the
provisions of the Quality Housing and Work Responsibility Act of
1998 (Title V of the FY 1999 HUD Appropriations Act; Pub. L. 105-
276) in 24 CFR 982.604.
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I. Minimum FMRs
All FMRs are subject to a minimum rent based on state or national
non-metropolitan area median rent. HUD calculates a population-weighted
median two-bedroom FMR across all non-metropolitan counties or county-
equivalents of each state, which, for the purposes of FMRs, is the
state minimum rent. State-minimum rents for each FMR area are available
in the FY 2023 FMR Documentation System, available at https://www.huduser.gov/portal/datasets/fmr.html#2023_query. HUD also
calculates the population-weighted median FMR rent across all non-
metropolitan areas of the country, which, for the purposes of FMRs, is
the national non-metropolitan rent. For FY 2023, the national non-
metropolitan rent is $826. The applicable minimum rent for a particular
area is the lower of the state or national non-metropolitan median.
Each area's two-bedroom FMR must be no less than the applicable minimum
rent.
J. Limit on FMR Decreases
Within the Small Area FMR final rule published on November 16,
2016,\10\ HUD amended 24 CFR 888.113 to include a limit on the amount
that FMRs may annually decrease. The current year's FMRs resulting from
the application of the bedroom ratios, as discussed in section (E)
above, may be no less than 90 percent of the prior year's FMRs for
units with the same number of bedrooms. Accordingly, if the current
year's FMRs are less than 90 percent of the prior year's FMRs as
calculated by the above methodology, HUD sets the current year's FMRs
equal to 90 percent of the prior year's FMRs. For areas where use of
Small Area FMRs in the administration of their voucher programs is
required, the FY 2023 Small Area FMRs may be no less than 90 percent of
the FY 2022 Small Area FMRs. For all other metropolitan areas, the FY
2023 Small Area FMRs may be no less than 90 percent of the greater of
the FY 2022 metropolitan area wide FMRs or the applicable FY 2022 Small
Area FMR.
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\10\ 81 FR 80567.
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PHAs operating in areas where the calculated FMR is lower than the
published FMR (i.e., those areas where HUD has limited the decrease in
the annual change in the FMR to 10
[[Page 53765]]
percent) may request payment standards below the basic range (24 CFR
982.503(d)) and reference the ``unfloored'' rents (i.e., the
unfinalized FMRs calculated by HUD prior to application of the 10-
percent-decrease limit) depicted in the FY 2023 FMR Documentation
System (available at: https://www.huduser.gov/portal/datasets/fmr.html#2023_query).
IV. Small Area FMRs
HUD lists Small Area FMRs for all metropolitan areas in the Small
Area FMR Schedule. Metropolitan PHAs operating in areas where the use
of Small Area FMRs is not mandated should contact their local HUD field
office to request approval for using Small Area FMRs in the operation
of their Housing Choice Voucher program.
HUD calculates Small Area FMRs directly from the standard quality
gross rents provided to HUD by the Census Bureau for ZIP Code
Tabulation Areas (ZCTAs) when such data are statistically reliable. The
ZCTA two-bedroom equivalent 40th percentile gross rent is analogous to
the standard quality base rents set for metropolitan areas and non-
metropolitan counties. For each ZCTA with statistically reliable gross
rent estimates, using the expanded test of statistical reliability
first used in FY 2018 (i.e., estimates with margins of error ratios
below 50 percent and based on at least 100 observations), HUD
calculates a two-bedroom equivalent 40th percentile gross rent using
the first statistically reliable gross rent distribution data from the
following data sets (in this order): two-bedroom gross rents, one-
bedroom gross rents, and three-bedroom gross rents. If either the one-
bedroom or three-bedroom gross rent data are used because the two-
bedroom gross rent data are not statistically reliable, HUD converts
the one-bedroom or three-bedroom 40th percentile gross rent to a two-
bedroom equivalent rent using the bedroom ratios for the ZCTA's parent
metropolitan area. To increase stability to these Small Area FMR
estimates, HUD averages the latest three years of gross rent
estimates.\11\
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\11\ For example, for FY 2023 Small Area FMRs, HUD averages the
gross rents from 2018, 2019, and 2020 5-Year ACS estimates. The 2018
and 2019 gross rent estimates would be adjusted to 2020 dollars
using the metropolitan area's gross rent CPI adjustment factors.
---------------------------------------------------------------------------
For ZCTAs without usable gross rent data by bedroom size, HUD
calculates Small Area FMRs using the rent ratio method. To calculate
Small Area FMRs using a rent ratio, HUD divides the median gross rent
across all bedrooms for the ZCTA by the similar median gross rent for
the metropolitan area of the ZCTA. If a ZCTA does not have reliable
rent data at the all-bedroom level, HUD will then check to see if the
ZCTA borders other ZCTAs that themselves have reliable rent data. If at
least half of a ZCTA's ``neighbors'' have such data, HUD will use the
weighted average of those estimates as the basis for the Small Area FMR
rather than a county proxy, where the weight is the length of the
shared boundary between the ZCTA and its neighbor. In small areas where
the neighboring ZCTA median gross rents are not statistically reliable,
HUD substitutes the median gross rent for the county containing the ZIP
code in the numerator of the rent ratio calculation. HUD multiplies
this rent ratio by the current two-bedroom FMR for the metropolitan
area containing the small area to generate the current year two-bedroom
FMR for the small area.
HUD continues to use a rolling average of ACS data in calculating
the Small Area FMR rent ratios. HUD believes coupling the most current
data with previous year's data minimizes excessive year-to-year
variability in Small Area FMR rent ratios due to sampling variance.
Therefore, for FY 2023 Small Area FMRs, HUD has updated the rent ratios
to use an average of the rent ratios calculated from the 2014-2018,
2015-2019, and 2016-2020 5-year ACS estimates.
HUD limits each two-bedroom Small Area FMR to be no more than 150
percent of the two-bedroom FMR for the metropolitan area where the ZIP
code is located.
V. Response to Comments on Proposed Changes to FMR Calculation
In response to HUD's July 13, 2022, notice of Proposed Changes to
the Methodology Used for Calculating Fair Market Rents, HUD received 67
public comments. HUD responds to the public comments received below.
A. Public Comments Supporting the Proposed Changes to the Methodology
Used for Calculating FMRs
Numerous commenters expressed support of the proposed changes to
utilize private data sources in the methodology used for calculating FY
2023 FMRs, with some commenters supporting the use of private data
sources in subsequent FMR calculations after FY 2023. Other commenters
expressed general support of changing the methodology used for
calculating FMRs without commenting substantively on the proposed
methodology used for calculating FMRs.
Some commenters expressly stated their belief that private data
sources more accurately reflect the current prices in the rental
market. Other commenters supported the proposed changes to the
methodology used for calculating FMRs because the commenters believe
that current calculation methods cause FMR amounts to consistently lag
behind actual rent amounts. Multiple commenters recommended that HUD
use the proposed inflation adjustment of the average of changes in
rents from all available private data sources for the area and the
change in rents measured by the Bureau of Labor Statistics (BLS)
metropolitan CPI.
One commenter expressed agreement with HUD's proposed strategy to
replace the missing 2020 ACS 1-year rent data. The commenter also
expressed that the 5-year ACS sample tends to be lower than the usual
1-year tabulation and that private data sources can provide sufficient
coverage to more accurately track changes in certain types of rental
markets than CPI. The commenter further stated its agreement with HUD's
proposed strategy to augment the CPI methodology by including private
data sources, along with CPI, in the calculation of the average gross
rent inflation factor in the limited situations proposed by HUD.
HUD Response: For the calculation of FY 2023 FMRs, HUD is
augmenting inflation data from the CPI with measures of rent inflation
calculated from private-sector data. HUD is making this change in
response to the lack of availability of ACS 2020 data and the changes
in rental markets that have occurred following the COVID-19 pandemic.
HUD feels that inflation factors based on the CPI and, where available,
at least three and up to six of the private-sector data sources
previously mentioned will provide the best estimate of the 40th
percentile gross rent paid by recent movers for FY 2023. HUD will
continue to evaluate both the impacts of these specific changes and its
overall FMR calculation methodology and determine the best methodology
to use in future years.
B. Public Comments Recommending Additional Changes or Alterations to
the Proposed Changes to the Methodology Used for Calculating FMRs
i. Suggestions To Use Additional Private Data Sources
Multiple commenters expressed support for the use of additional
private data sources beyond those proposed in the Notice of Proposed
Changes for Calculating Fair Market Rents. Some commenters specifically
requested that HUD consider using additional private
[[Page 53766]]
data sources for both large metropolitan statistical areas (MSA) and
submarkets to MSAs.
HUD Response: The six sources considered by HUD represent a range
of metrics which, when taken together and augmented with the CPI,
should provide a reasonable measure of rent inflation. The measures of
rent used by HUD are the RealPage (formerly Axiometrics) average
effective rent per unit, Moody's Analytics REIS average market rent,
CoStar Group average effective rent, CoreLogic, Inc. single-family
combined 3-bedroom median rent, ApartmentList Rent Estimates, and
Zillow Observed Rent Index. HUD requires at least three private data
sources to ensure that no single source unduly influences the FMR
calculation.
ii. Suggestions To Use Alternative Private Data Sources
One commenter, citing a study conducted by 2M Research (2019),
suggested that HUD use Axiometrics (RealPage) data, rather than Zillow
data, to estimate the Autoregressive Integrated Moving Average. The
commenter advised that this approach lends more geographic resolution
to trend factors and could lead to more accurate FMRs. Further citing
the 2M Research study, the commenter stated that the Axiometrics
(RealPage) data, compared to American Community Survey (ACS) data,
provided results that indicate the Axiometrics (Real Page) measure
``erent'' is a viable option for estimating trends in FMR.
One commenter recommended the use of data produced by Zillow for
setting FMR amounts, while another commenter suggested that data from
Zillow be excluded from use with FMR calculations. One commenter
recommended the use of data sourced from Craigslist for calculating FMR
amounts.
Commenters stated that each year several HCV programs conduct local
rental housing costs surveys to contest HUD's published FMRs. The
commenter suggested that HUD allow these studies to be used for FMR
calculation methodology. Commenters also encouraged HUD to assess the
feasibility of using observed CPI data or private data sources to
adjust rents forward from the 2020 ACS to 2022, rather than 2021.
Another commenter stated that HUD should consider using the
commenter's data in the methodology used for calculating FMRs. The
commenter stated that it collects extensive data that includes hundreds
of data points that corroborate all nine factors required for
comparability in determining if rent is reasonable, as described in 24
CFR 982. The commenter also advised that its data is used by hundreds
of public housing agencies in determining rent reasonableness in the
HCV Program.
HUD Response: As previously stated, the six sources HUD uses in its
FY 2023 FMR calculation should provide a broad measure of rent
inflation. HUD will continue to evaluate these and other sources of
rent data to assess the accuracy of its FMR calculation, although it
should be noted Craigslist does not make available aggregate rent
statistics based on its rental listings to HUD.
HUD continues to use PHA-sponsored survey data in FMR calculation
and PHAs may continue to submit such data. HUD is committed to
continuing to assess its FMR calculation and make improvements when
warranted; however, at this time HUD is not including the private
measures of rent inflation in the trend factor component of FMR
calculation, as the forecasting of rent levels is a complex process and
HUD does not have an evidenced-based method for doing so. In addition,
when HUD established the practice of forecasting local and regional CPI
data for the FY 2020 FMRs, it committed to using the same model
structure initially selected for each area through the FY 2024 FMRs.
Estimating new forecasting models including private rent data would not
be consisten with HUD's previous commitment.
iii. Suggestions Regarding Changes That Should Be Made Based on the
Data in the Private Data Sources Identified in the Proposed Changes to
the Methodology Used for Calculating FMRs
One commenter stated that HUD must calculate utilities in FMRs the
way it has done previously because utility data is not listed within
the private data sources. Another commenter stated that, for each
private data source that uses ACS data that is not available for 2020,
HUD should account for this lag in accurately capturing rising rent
costs.
One commenter expressed concern that HUD's forecast of gross
Consumer Price Index (CPI) as the trend factor should also be augmented
by private data sources. The commenter stated that the private data
sources being used are limited to data using 2020 and 2021 data but not
factoring 2022 and 2023 forecast. The commenter expressed concern that
this lack of factoring will not reflect the necessary increase in FMRs.
Another commenter stated that private data sources may introduce
more volatility in annual FMR changes. The commenter encouraged HUD to
protect participants from the loss of housing due to dramatic declines
of FMRs. One commenter recommended that HUD could use private data
sources, which are collected in real time, to monitor the performance
of the published FMRs. HUD could then use that monitoring data to
update FMRs more frequently than annually, if market data crossed set
thresholds.
HUD Response: Each inflation-adjustment portion of the FMR
calculation is a gross rent adjustment, meaning it is a weighted
average of shelter rent inflation and utility inflation as reported by
the CPI fuels and utilities series. As previously stated, HUD is not
including the private measures of rent inflation in the trend factor
component of FMR calculation as it does not have an evidenced-based
method for doing so. Per HUD regulations, FMRs may not decline by more
than 10 percent from the prior year, in order to protect against
dramatic declines. Additionally, Public Housing Agencies administering
the Housing Choice Voucher program may adopt policies that limit a
decline in payment standards for in-place households.
iv. Suggestions and Comments Regarding Recommendations Related to the
Use of American Community Survey (ACS) Data
One commenter recommended that HUD use more localized data for
calculating FMRs because it provides more accurate information than
that provided by ACS. Some commenters expressed that 5-year ACS data
does not sufficiently capture current rental prices. One commenter
recommended the use of an additional inflation multiplier to account
for the lagged inflationary data. Another commenter stated that the 1-
year ACS adjusted for inflation using the CPI consistently understates
the 40th percentile for gross rents in their locality.
HUD Response: HUD's changes to its calculation methodology
incorporate more local rental market inflation data than it has used in
the past. As described previously, HUD performs a ``recent mover
adjustment'' to all areas to account for the time lag of the 5-year
ACS. The cumulative inflation adjustments used in the FMR calculation
process make the FMRs the best estimate of rents ``as of'' FY 2023;
therefore, HUD feels no further inflation adjustment is warranted.
v. Comments Regarding the Reduction of or Recipient Disagreement With
Calculated FMR Amounts
One commenter encouraged HUD to consider increasing the hold
harmless
[[Page 53767]]
provision to 100 percent of the prior year FMR because of the current
uncertainty in the rental market. Another commenter stated that, for
any areas where the use of private data sources would result in
inflation adjustments lower than the standard CPI adjustment, HUD
should continue to use the CPI data in those instances for FY 2023. A
separate commenter urged HUD to limit any year to year decreases in
FMRs to 5 percent.
Another commenter stated that HUD should consider revisiting the
amount by which FMRs can decrease year over year, but that the
commenter believes that FMR accuracy is the primary concern of HCV
program sponsors. Another commenter stated that HUD should consider
ways to account for the added volatility that could be introduced by
private data sources. The commenter recommended that HUD consider
further tightening the 10 percent yearly FMR decrease floor or to
introduce an additional multi-year limit on the amount an FMR may
decrease.
One commenter expressed concerns that new development properties
placed into service in FY 2023 will not be eligible for the hold
harmless policy, and therefore will see a corresponding decrease in Low
Income Housing Tax Credit rent limits should Income Limits decrease.
One commenter encouraged HUD to allow communities to use private sector
data to supplement FMR survey results when appealing HUD calculated
FMR, while another commenter asked HUD to verify that PHAs will
continue to have the opportunity to use the same FMR reevaluation
process, under 24 CFR 888.115(a), notwithstanding the use of the
proposed methodology. The commenter stated that to evaluate whether an
FMR is accurate, localities will need increased transparency into the
coverage of the private data sources used in calculating the FMR.
HUD Response: Per HUD regulations, FMR may not decline by more than
10 percent from the prior year, in order to protect against dramatic
declines; however, HUD must consider the most recent data available and
may reduce FMRs by up to 10 percent should the data warrant it.
Additionally, Public Housing Agencies administering the Housing Choice
Voucher program may adopt policies that limit a decline in payment
standards for in-place tenants. For the calculation of FY 2023 FMRs,
HUD is using an average of both private sources and CPI to avoid any
undue volatility in the resulting FMR.
With respect to Low Income Housing Tax Credit Rent Limits, HUD
believes that the changes to its FMR methodology for FY 2023 will
produce the best estimate of 40th percentile gross rents paid by recent
movers to support high- and low- housing cost adjustments to income
limits.
PHAs may continue to submit ad hoc rental market surveys in support
of reevaluation requests as described in section VI of this Notice. Ad
hoc surveys provide a measure of the 40th percentile gross rent paid by
recent movers, while the private sources HUD uses in its FY 2023 FMR
calculation provide a measure of rental market inflation.
C. Public Comments Regarding Suggestions for the Methodology Used for
Calculating FMRs After FY 2023
When updating recent mover calculations after FY 2023, commenters
recommend that HUD work with other federal agencies to explore the
feasibility of using existing public data sources as an alternative to
the CPI. Another commenter asked HUD to consider changing the
methodology used for calculating FMRs after FY 2023 in a way that is
more reflective of local realities and the current rental market, such
as using different rental data sets used in private data sources.
Beyond FY 2023, one commenter does not support the use of private
data sources as an alternative to the CPI-based inflation adjustments
because of concerns over the lack of methodological transparency
inherent in the private data sources. Should HUD adopt the use of
private data sources beyond 2023, the commenter stated that the
methodology and estimates of the private data sources should be made
readily available by either HUD or the data provider.
One commenter stated that it did not understand HUD's decision to
make these changes only effective for FY 2023 because the issues
leading to HUD's decision to propose the changes to the methodology
used for calculating FMRs is likely to continue past FY 2023.
HUD Response: HUD will continue to evaluate its FMR calculation and
determine the best methodology and data sources to use each year. This
includes examining current data sources and working with public and
private partners to obtain new data sources. HUD is committed to
transparency in its FMR calculation and maintains a website where
interested parties may see the calculation steps for any area's FMR.
For FY 2023, this includes the average of the private measures of rent
inflation where applicable. HUD is presenting the average in order to
protect the proprietary data of those companies that do not make their
data publicly available.
D. Public Comments Opposing or Expressing Concerns With the Proposed
Changes to the Methodology Used for Calculating FMRs
i. Comments Regarding the Lack of Transparency of Private Data Sources
One commenter expressed skepticism of the utility of the listed
private data sources because of the high cost and lack of transparency
involved with the use of private data, which make it impossible for
industry stakeholders to evaluate the data. According to the commenter,
this lack of transparency means that the statistical reliability is
unknown and data validation is not possible with the private data
proposed for use. Due to the lack of control and transparency of
private data sources, another commenter stated that HUD should work
with other federal agencies to identify and evaluate novel
methodologies to estimate recent mover rents.
One commenter expressed that HUD should make available an
explanation of its criteria on how the private data sources were
selected and will be selected in the future. Commenters encouraged HUD
to increase public access to the private data sources if the private
data sources will continue to be used past FY 2023. One commenter urged
HUD to negotiate data transparency with each of the private data
sources.
Other commenters do not necessarily support the use of private data
indefinitely after FY 2023 because of the lack of transparency and a
lack of public oversight. One commenter expressed concerns with the
lack of transparency of what private data sources are being considered
and how HUD is defining various factors involved in HUD's intentions in
utilizing private data sources, including how ``narrowly,'' how
``limited,'' and what is the meaning of ``statistically valid'' is for
HUD's purpose. The commenter also questions how HUD will determine the
accuracy of private data sources in estimating rental market changes.
Another commenter encouraged HUD to develop transparent, comprehensive
public sources of up-to-date recent mover data to eventually take the
place of private data sources.
A commenter stated that HUD should announce exactly how it plans to
use private sector datasets, how it will apply changes to estimation
and trending approaches, which datasets it plans to use, which
geographic areas these changes may affect, and at least a
[[Page 53768]]
sample of FMRs produced by these changes. One commenter urged HUD to
harmonize the private data sources used in terms of anomalies such as
rent concessions and control for differences that may appear in the
various sources, as well as share publicly how it adjusts for the
differences.
HUD Response: Both HUD's research and external research has shown
that the private sources of data HUD is using for FY 2023 are a
reasonable measure of rent inflation. There are limitations in each
data source, including that they may not cover the entirety of a given
market in terms of geographic area, type of unit, or unit quality. For
these reasons, HUD requires an area to be covered by at least three
private data sources before incorporating any private data sources in
the FMR estimates. Further, HUD takes the average of the private data
sources along with the CPI in constructing a shelter rent inflation
factor. HUD cannot guarantee the accuracy of its FMR calculations as
there is no universally accepted benchmark to compare the FY 2023 FMRs
against. However, HUD feels the methodology it is adopting for FY 2023
FMRs is fundamentally sound and appropriate for producing the best
estimate of the 40th percentile rent paid by recent movers. HUD has
selected the data sources it uses in the FY 2023 FMRs in part by its
past use of such data by HUD field economists, which includes
evaluating the methodology of the data sources and using them to
evaluate rental market conditions throughout the country. HUD is
committed to transparency in its FMR calculation and maintains a
website where interested parties may see the calculation steps for any
area's FMR. For FY 2023, this includes the average of the private
measures of rent inflation where applicable. HUD is presenting the
average in order to protect the proprietary data of those companies
that do not make their data publicly available.
ii. Comments Recommending Alternative Approaches and Expressing
Concerns Regarding the Proposed Changes to the Methodology Used for
Calculating FMRs
Commenters recommended use of the CPI without the private data
sources to trend FMRs to the current year and to calculate Recent-Mover
factors without using private data sources. The commenters recommend
two alternative methodology approaches from that proposed. First, the
commenters said one method to calculate FMRs is to take the Recent-
Mover rent from the previous year, 2019 (i.e., the rent obtained by
applying the 2019 Recent-Mover factor to the 2019 base rent) and adjust
it forward to 2020 using a CPI-based inflation factor. Alternatively,
the commenters said FMRs could be determined by calculating base rents
from the 2016-2020 5-year ACS estimates in the usual way, apply a
Recent-Mover factor calculated from the 5-year data, then compensate
for the tendency of 5-year Recent-Mover factors to be lower with data
from the previous year. The Commenters stated that this would mean
multiplying the 2020 Recent-Mover rent by the ratio of the 1-year
Recent-Mover factor to the 5-Year Recent-Mover factor from the previous
year.
Another commenter stated that a proposed implementation of
localized rent inflation could potentially increase the number of areas
that have been deemed ``lower opportunity areas,'' leading to lower
payment standards and remove rental options in those areas.
HUD Response: With respect to the recent mover factor, HUD is
addressing the lack of the typical 1-year ACS data by using both
inflated 2019 ACS 1-year recent-mover data, and 2020 ACS 5-year recent-
mover data. While HUD is using private sources of rent inflation data
where available, it is always doing so in conjunction with the CPI to
capture as broad a measure as possible of rental market inflation.
HUD is making no designation of ``high'' or ``low'' opportunity
areas in this Notice.
iii. Comments Expressing Concerns That the Private Source Data Is Not
Reflective of the Relevant Rental Markets
One commenter stated that any private data sources selected for use
should be representative of the entire rental housing market.
Commenters expressed concern that the selected data sources may only be
representative of single-family homes or rental listings representative
of the higher end of the rental market.
Another commenter stated their concern that the use of the private
data sources introduces biases into FMRs that may affect HUD's relative
distribution of housing assistance payments. The commenter referenced a
study by the University of Puerto Rico titled ``The Effects of HUD's
Area Median Income and Fair Market Rent Limits on Puerto Rico's Rental
Market, Workforce and Economy'' that the commenter stated the study
determined that the current method for calculating FMRs has had a
positive effect on reducing rent burdens for low-income households. The
commenter stated that the proposed private data sources do not reflect
the rental market of their territory because the percentage of
households classified as non-cash paying renters varies significantly
from many other states. Further, the commenter claimed that a higher
percentage of landlords in their territory own one or two rental units,
meaning these rental units are less likely be captured in private data
sources.
Commenters expressed skepticism over the use of private data
sources in the calculation of FMRs; however, the commenters indicated
their support of the proposal within the Notice of Proposed Changes for
Calculating Fair Market Rents if HUD could demonstrate persuasively
that the use of private data produces a significantly more accurate
estimate of market-based rents.
Commenters expressed concerns with how representative the private
data is of the entirety of rental markets. One commenter identified
that CoreLogic's data does not include multifamily data and should be
combined with other data; Zillow's data is weighted based on how often
properties are viewed on Zillow and the commenter advises that HUD
should adjust for this weighting; and ApartmentList's Rent Estimates
does not make clear if it uses price tiers and HUD should ensure that
low priced units are usually excluded so as to not lead to an
underestimation of rent costs.
Another commenter expressed that the proposed changes to the
methodology used for calculating FMRs will not help voucher recipients
in their area because the private data sources do not include data on
the commenter's rental market.
HUD Response: HUD recognizes the concern that any single measure of
rent inflation may be based on an unrepresentative sample of a market
and may therefore introduce bias into the FMR calculation. HUD attempts
to address this in the calculation of FY 2023 FMRs by requiring at
least three private data sources to ensure that no single source unduly
influences the FMR calculation, and by averaging rent inflation
captured by private sources with the CPI to capture as broad a measure
as possible of rental market inflation.
For Puerto Rico, HUD does not use any private measures of rent
inflation, and instead uses gross rent inflation reported by the Puerto
Rico Department of Labor and Human Resources (DTRH), Bureau of
Statistics.
With respect to the representativeness of the private sources of
rent inflation data, HUD attempts to address this in the calculation of
FY 2023 FMRs by requiring at least three private data sources to ensure
that no single source
[[Page 53769]]
unduly influences the FMR calculation, and by averaging rent inflation
captured by private sources with the CPI to capture as broad a measure
as possible of rental market inflation.
iv. Comments Concerning the Effect of Private Source Data on Flat Rents
Some commenters expressed concern about the effect on Flat Rents
from the use of private data sources for calculating FMRs. The
commenters requested that PHAs be given the ability to freeze Flat
Rents based on the 2022 FMRs/SAFMRs until the ACS is updated and the
impacts of the pandemic have waned from the rental market.
HUD Response: HUD believes that the methodology it is adopting for
the calculation of FY 2023 FMRs produces the best estimates of 40th
percentile gross rents paid by recent movers. PHAs may continue to
apply for exception flat rents as described in PIH Notice 2021-27.
E. Public Comments Concerning the Effective Date and Evaluations
i. Request for Analysis and Evaluation of the Effectiveness of the
Proposed Changes
Some commenters requested that HUD retrospectively evaluate the FY
2023 FMR data to determine if the proposed changes provided more
accurate information on rental markets. One commenter urged HUD to do a
historical comparison of rent trends shown in the private data sources
that are eventually set for FY 2023 with those documented by the 2010
and 2020 Census.
A commenter stated that HUD should assess the effectiveness of the
use of private data sources used in FY 2023 and should discontinue the
use of any private data source that does not further the goal of
improving the accuracy of FMRs. The commenter expressed that the
assessment of the effectiveness of the private data should focus on the
accuracy of the private data sources and the improvement of the leasing
experience for voucher holders. Commenters stated that HUD should make
its assessment of the accuracy of data in setting FMRs public. One
commenter stated that HUD should annually produce a public report
regarding the accuracy of private data sources in setting FMRs. Other
commenters requested that HUD provide funding to PHAs to conduct local
studies on rental data.
HUD Response: Given that FMRs are calculated ahead of each fiscal
year, there is inherent uncertainty in the FMR calculation process. HUD
is committed to assessing the accuracy of its FMR calculations
including through the use of retrospective analysis, backtesting of new
methods and data, and independent research.
HUD's ability to provide funds to PHAs for local rental market
surveys is dependent on the availability of funds and their authorized
uses specified in annual appropriations statutes.
ii. Comments Regarding Impacts to Grant Recipients From the Timing of
the Effective Date of the FY 2023 FMRs
Commenters stated concerns about the timeliness of the publication
of the Notice of Proposed Changes for Calculating Fair Market Rents,
encouraging HUD to implement the proposed changes to the methodology
for calculating FY 2023 FMRs no later than October 1, 2022. One
commenter indicated that, should the FY 2023 FMRs be finalized after
October 1, 2022, FMR amounts should be applied retroactively to the
start of the HUD FY. Another commenter encouraged HUD to publish any
future changes to its FMR methodology in time to permit both thoughtful
public comments and input concerning those comments, to allow for HUD's
consideration of those comments along with potential changes to its
proposals.
One commenter stated that the October 1, 2022 effective date of the
FY 2023 FMRs would generally not allow grants with an application
deadline prior to October 1, 2022 to receive an increase in FMR amounts
caused by the proposed changes. The commenter indicated that grant
awards could be increased based on FMR levels; but said HUD's scoring
system in the Continuum of Care (CoC) competitive process encourages
reallocation of funds. According to the commenter, this scoring process
discourages communities from seeking the full FMR levels because the
community is incentivized to reduce total budget per project. The
commenter also stated that, while grant recipients can seek increases
in FMR levels, the grant awards are based on increases that HUD allows
and sometimes are not raised to the actual FMR levels.
Other commenters stated that the yearly change of FMR amounts in
October does nothing to assist grant recipients for programs that have
already submitted budgets based on a previous year's FMRs. The
commenters encouraged HUD to correct for this situation. One commenter
urged HUD to announce changes to its methodology for FY 2024 in the
first half of calendar year 2023.
HUD Response: This Notice announces new FMRs for 2023 in line with
previous years' publication of FMR updates. HUD is committed to
allowing for public input in future changes to its FMR calculation,
including through comment on this Notice.
Additionally, this Notice is limited to the announcement of new
FMRs, and the methodology used in their calculation. HUD is required by
statute to update FMRs not less than annually and strives to make these
updates effective at the start of each federal fiscal year. Grants
programs, including the Continuum of Care grant program, will provide
separate guidance on the use of FMRs within those programs, and will
consider the appropriate timing of budget submissions with respect to
the annual update of FMRs.
F. Public Comments That Address Alternative FMR Calculations and the
Determination of FMR Amounts
i. Comments Concerning the FMR Amounts
Multiple commenters indicated that FMR values are currently too
low, causing individuals and families to be unable to find housing or
requiring displacement of people, potentially to unsafe and unhealthy
areas.
HUD Response: In the Housing Choice Voucher program, PHAs may set
payment standard amounts at up to 110 percent of the FMR as part of
their normal program operations. Additionally, PHAs have a variety of
options beyond setting payment standards at 110 percent of the FMR.
PHAs may pursue exception payment standards above 110 percent of FMR,
including through the expedited waiver process described in PIH Notice
2021-34. PHAs may apply for success rate payment standards, which allow
for setting payment standards using the 50th percentile estimates of
rent. PHAs may, with HUD approval, establish an exception payment
standard of more than 120 percent of the published FMR if required as a
reasonable accommodation in accordance with 24 CFR part 8 for a family
that includes a person with a disability after approval from HUD.
Finally, PHAs may adopt Small Area FMRs (or use Small Area FMRs as the
basis for exception payment standards), which may allow for payment
standards of up to 160 percent of the metropolitan FMR in high-rent ZIP
Codes.
ii. Comments Suggesting Alternative FMR Calculation Methodology
One commenter stated that HUD should increase the flexibilities
given to
[[Page 53770]]
public housing agencies because local agencies can better match rental
prices than any national methodology. Another commenter recommended
that HUD utilize its regulatory authority or recommend the issuance of
an Executive Order or legislation to declare an emergency 20 percent
increase to all current FMR schedules as they apply to HCV programs.
The commenter advised that this emergency action could be discontinued
after the rental market crisis abates.
One commenter encouraged the use of a ``rent reasonableness''
approach in the setting of FMR amounts, rather than the method
currently used to set FMR rates.
Some commenters recommended that HUD should consider vacancy rates
as part of the methodology used to calculate FMRs to address adverse
rental housing market conditions, as defined by HUD. Another commenter
recommended that FMRs be calculated based on a combination of the
number of persons in a household, number of bedrooms in the household,
the household income, and then multiplied by a percentage of the
household income. One commenter recommended that within every ZIP code,
each PHA should reserve a certain percentage of housing for Section 8
tenants.
Another commenter submitted numerous recommendations for
calculating FMRs and improving housing services for residents,
including: considering household incomes in real time; creating
information for rental programs that detail who is eligible for
programs; establishing diversity in renting rates versus properties
available for rent; establishing market rental rates corelated with the
average income of the state or territory; allocating HUD funding based
on region rather than nationwide; creating affordable housing
opportunities for low and moderate income tenants who are single
parents or young; identifying more viable properties for affordable
housing inventory; creating and promoting educational opportunities for
diverse populations on topics of budget management, student loans,
renting and homeownership; increasing rental program assistance
reflective of actual market conditions; requiring renting counseling as
an eligibility requirement for rental assistance programs; requiring
evidence of job placement searches to receive assistance; promoting job
placement opportunities; establishing specific funds for rental
programs for victims of domestic violence; creating programs that
support local residents by providing tools for rental and
homeownership.
One commenter suggested that entire ZIP codes not be deemed as
``lower opportunity areas'' and that a more defined concept be used to
allow for census tracts to be considered as an option specifically in
these areas so that affordable housing opportunities are not lost.
Another commenter recommended that the methodology used for calculating
FMRs be simplified.
One commenter recommended that, in addition to the number of
bedrooms, FMR calculations should also consider square footage of the
rental unit. The commenter also recommended that there be greater
flexibility for the tenants in making unit selections. Finally, the
commenter stated that setting FMR amounts by ZIP code can lead to
unusual results in that ZIP codes that are geographically next to each
other and contain comparable housing quality will have FMR amounts that
are greatly different.
Another commenter recommended revising FMR and HUD Income Limit
calculation methods by basing the amounts on the current minimum wage
of the respective jurisdiction. A separate commenter urged HUD to
explore more responsive and accurate FMR calculation methodologies that
would consider additional factors, such as vacancy rates. A separate
commenter stated that the current method for calculating FMRs unfairly
punishes housing authorities and tenants who work.
One commenter recommended that HUD revise the FMR methodology to
use more months of actual inflation data and fewer months of trend
factor-based projects. Separately, the commenter stated that HUD should
modify the trend factor to project changes in recent mover rents rather
than rents overall. Finally, the commenter advised that HUD should
allow FMR revisions when new inflation data show that trend factor-
based projections were inaccurate.
One commenter stated that, beginning with FY 2023, HUD should
include internet services in FMR calculations. The commenter expressed
that this change would be in line with the priorities of the current
presidential administration and congress.
HUD Response: With respect to the suggested programmatic changes,
this Notice is limited to the announcement of new FMRs, and the
methodology used in their calculation. HUD will continue to assess the
overall performance of its housing assistance programs and make any
necessary regulatory or policy changes to ensure success of its
mission.
``Rent reasonableness'' generally means comparing the rent of one
unit to comparable units based on unit characteristics. By contrast,
the FMR is meant to be the 40th percentile rent of the distribution of
all units.
While low vacancy rates may be associated with higher rent growth,
HUD believes that its direct calculation of gross rent inflation
adjustment factors is the best approach for FY 2023. HUD will continue
to evaluate its FMR calculation in the future including the use of
other variables.
HUD's regulations allow for separate FMRs for units of different
bedroom counts. Given the heterogeneous nature of housing, units will
necessarily differ by a range of other features, including square
footage. HUD believes that setting the FMR at the 40th percentile of
gross rents will allow for an adequate selection of units by size.
In its calculation of ``trend factors,'' HUD uses the most recent
available inflation data at the time of calculation, which for FY 2023
is the second quarter of 2022.
With respect to ZIP code-level variation in rents for areas
required to use Small Area FMRs, it is possible for rents to vary by
ZIP code even with similar unit quality, as rents often capture other
location amenities. HUD provides the same payment standard
flexibilities for PHAs for areas mandated to use Small Area FMRs as it
does for PHAs not subject to the mandatory use of Small Area FMRs.
The FMR is meant to be a gross rent, and therefore to measure the
cost of the shelter plus the necessary utilities to live in the home.
Internet services are not defined as a utility in HUD's regulations,
nor are the costs included in the gross rent data provided by the
Census Bureau and Bureau of Labor Statistics.
iii. Comments Urging Additional HUD Actions
Commenters encouraged HUD to respond to congressional concerns
regarding the volatility of rents and lagging FMRs by publishing and
responding to the studies that HUD has commissioned to recommend
alternative strategies. A commenter recommended that HUD work in
collaboration with people who are directly impacted by FMR calculations
when addressing FMR calculations for the long term.
HUD Response: HUD is committed to constantly evaluating its FMR
methodology and making all such research available to the public,
including its grant-funded reports. HUD routinely responds to
congressional
[[Page 53771]]
concerns concerning its FMR calculations. HUD is also committed to
working with people who are directly impacted by its FMR calculations,
including by soliciting comments through this Notice.
G. Public Comments Regarding the Methodology Used for Calculating FMRs
in Small Area FMRs, Non-Metropolitan Areas, and Rural Areas
i. Concerns Regarding the Lack of Available Private Data Sources for
Small Area FMRs, Non-Metropolitan Areas, and Rural Communities
One commenter stated that HUD does not adequately describe how the
proposed methodology will be adapted for smaller rural FMR areas, and
that HUD's proposed approach is concerning because the private data
sources are not available for rural geographies and 1-year ACS data
consistently underestimates rent for rural areas.
Other commenters stated that the proposed private data sources will
likely not include rental data for Small Area FMR P.O. Box-only, this
lack of data limits the information to the physical address where the
rental unit exists.
Other commenters stated their concern that they were not able to
vet the proposed private data sources. One commenter said that, except
for one source, all the data were ``pay-walled.'' For the one source
the commenter was able to review, the commenter said that the source
did not provide data even for the largest metropolitan area in the
commenter's state and that worried the commenter.
One commenter encouraged HUD to explore alternative methods for
supplementing the ACS in nonmetro areas where private data sources are
unavailable or scarce, such as modifying the inflation adjustment
calculation to account for the reduced reliability of the private data
or finding ways to incorporate rental data collected by PHAs.
Another commenter stated that data produced by the Census Bureau
and HUD for rural communities in states with concentrations of rural
poverty is not reflecting the reality in these places.
One commenter stated that for Small Area FMRs it is important for
HUD to use data that is both highly accurate and granular to further
strengthen confidence in the final Small Area FMR calculations.
HUD Response: For FY 2023, HUD is using measures of rent inflation
calculated from private-sector sources in conjunction with the CPI as
part of the recent-mover factor and gross rent inflation adjustment
factor portions of the FMR calculation. In areas without at least three
such sources, HUD will use the CPI alone. The CPI remains a reasonable
measure of rent inflation calculated from repeat rents of a
representative sample of housing units.
Assessing the accuracy of FMRs is difficult because at any given
time the true 40th percentile rent paid by recent movers is unknown.
Survey-based estimates of rent are subject to sampling and non-sampling
error, a challenge which is true in both urban and rural areas. For the
Voucher program, HUD's policy addresses these sources of uncertainty by
allowing the payment standard to be set from 90 to110 percent of the
FMR, as well as above 110 percent of the FMR through the use of
exception payment standards.
ii. Comments Suggesting That HUD Employ Alternative Methodology for
Calculating FMRs for Small Area FMRs, Non-Metropolitan Areas, and Rural
Communities
One commenter suggested that HUD engage in a longer term, more
robust project to update the FMR methodology for small metropolitan and
rural FMR areas.
One commenter expressed concern that the proposed changes to the
methodology used for calculating FMRs will have little or no impact on
rural places and that HUD is proposing solutions that only benefit
densely populated portions of America. The commenter was concerned that
the private data will only benefit densely populated cities and may not
even capture all MSAs, let alone more rural regions. The commenter also
stated that the State Nonmetropolitan Median is a specific issue that
impacts disadvantaged rural, persistently impoverished places.
According to the commenter, nonmetropolitan counties, because of the
State Nonmetropolitan Median, are prevented from having dramatically
lower FMRs compared to their neighbors by a state-floor mechanism,
causing states with a concentrated rural poverty to have a depressed
median. The commenter encouraged HUD to review the methodology used for
calculating FMRs with a lens toward rural parity, which the commenter
stated is in line with Executive Order 13987 on Advancing Racial Equity
and Support for Underserved Communities.
HUD Response: HUD is committed to improving the accuracy of its FMR
calculation for all areas, including for rural areas. For FY 2023, HUD
is using inflation factors based on private sources of rental data in
the calculation of recent mover factors and gross rent inflation
factors in cases where at least three of the six data sources provide
data for the FMR area, in conjunction with the area's inflation factor
from the CPI. In cases without such sources, HUD is using a CPI-based
inflation factor for the area's region alone. HUD is using the private
sources of inflation where available because it believes it will
produce a more accurate FMR on average; however, it is not the case
that this ``benefits'' areas with private sources of data, as whether
the resulting FMR is higher or lower than it would be with the CPI
alone depends on the specific rental market dynamics in the area. HUD
has no control over the availability of rental data from the public and
private sources used in FMR calculation and no longer receives a
designated appropriation to conduct its own rent surveys in support of
FMR estimates.
iii. Concerns Regarding the Methodology Used for Calculating FMR
Amounts in Rural Communities That Are Geographically Near Public Lands
or Amenity Regions
One commenter expressed concerns that FMR calculations for non-
metropolitan towns that are located near public lands or amenity
regions that draw large amounts of visitors (described as ``gateway
towns'' by the commenter) are not calculated properly. The commenter
indicated that areas of a county that are less accessible to public
lands or amenities artificially deflate the rent values for gateway
towns, which are more accessible to public lands or amenities and
typically possess higher property values. The commenter stated that
this situation creates an affordability burden on persons who work at
the public lands or amenities regions because they are not able to live
close to their jobs. The commenter expressed that this problem is
further exacerbated because properties in gateway towns are in high
demand and are disproportionately purchased by non-resident wealthy
persons as vacation homes. In addition to concerns over the setting of
the appropriate FMR value in gateway towns, the commenter expressed
environmental justice concerns for residents of gateway towns. The
commenter said that gateway towns located near public lands are
perceived as more climate safe. Commenter said this perception leads to
the displacement of low- and middle-income residents to areas perceived
as less climate safe. To address both the FMR values methodology
calculation concern and the climate justice issues,
[[Page 53772]]
the commenter suggested that the methodology used for calculating FMRs
be altered to include the layering of (1) data related to the year-
over-year growth and/or real estate value increase and (2) the type of
economy that exists in the non-metropolitan county (e.g., mining,
recreation, agriculture). The commenter said the layering of this data
could then be used to apply an FMR boost for certain counties while the
5-year and new move-in data catches up with the actual market
realities.
HUD Response: HUD is changing its methodology for calculating FMRs
for FY 2023 partly in response to the rental market disruptions caused
by the COVID-19 pandemic. HUD remains interested in improving the
accuracy of its FMR calculations, including by evaluating whether land
values and community characteristics are useful indicators of changes
and rents; however, at this time, HUD does not have research indicating
such variables would improve its FMR calculation.
H. Public Comments Regarding Altering the Requirement To Use Mailed
Surveys To Collect FMR Data
Commenters suggested the removal of the requirement to use a mail
survey to collect FMR data, as modern survey collection does not rely
upon mail. Commenters stated that the expense of mail surveys and that
cost savings from removing the mail survey requirement would increase
the number of FMR areas that can afford to embark on a reevaluation and
successfully collect and submit the required data. One commenter
advised that paper post cards could be mailed that directs individuals
to an online survey, rather than mailing the survey itself.
Alternatively, a commenter said HUD could allow each state to develop a
methodology for establishing FMRs in their states, subject to HUD's
approval. The commenter said this approach would allow for local
expertise on the unique rental situations in each state.
HUD Response: HUD requires ad hoc rental market surveys to be
conducted using best practices of survey methodology and based on a
statistically representative sample of households. HUD does not require
a single manner of data collection. Parties interested in conducting ad
hoc rental market surveys should consult the following section of this
Notice for additional information.
VI. Request for Public Comments and FMR Reevaluations
HUD accepts public comments on the methods HUD uses to calculate FY
2023 FMRs and requests for reevaluation of FMRs for specific areas for
30 days after the publication of this notice. HUD lacks the resources
to conduct local surveys of rents to address comments filed regarding
the FMR levels for specific areas. PHAs may continue to fund such
surveys independently, as specified below, using ongoing administrative
fees or their administrative fee reserve if they so choose. HUD
continually strives to calculate FMRs that meet the statutory
requirement of using ``the most recent available data'' while also
serving as an effective program parameter.
FMR Reevaluations
42 U.S.C. 1437f(c)(1)(B) includes the following: ``The Secretary
shall establish a procedure for public housing agencies and other
interested parties to comment on such fair market rentals and to
request, within a time specified by the Secretary, reevaluation of the
fair market rentals in a jurisdiction before such rentals become
effective.''
PHAs or other parties interested in requesting HUD's reevaluation
of their area's FY 2023 FMRs, as provided for under section 8(c)(1)(B)
of USHA, must follow the following procedures:
1. By the end of the 30-day comment period, PHAs or other parties
must submit reevaluation requests through https://www.regulations.gov/
or directly to HUD as described in the Addresses section above. The
area's PHA or, in multi-jurisdictional areas, PHA(s) representing at
least half of the voucher tenants in the FMR area, must agree that the
reevaluation is necessary.
2. The requestor(s) must supply HUD with data more recent than the
2019 ACS data used in the calculation of the FY 2023 FMRs. HUD requires
data on gross rents paid in the FMR area for occupied standard quality
rental housing units. Occupied recent mover units (defined as those who
moved in the past 24 months) provide the best data. The data delivered
must be sufficient for HUD to calculate a 40th and 50th percentile two-
bedroom gross rent.\12\ Should this type of data not be available,
requestors may gather this information using the survey guidance
available at https://www.huduser.gov/portal/datasets/fmr/NoteRevisedAreaSurveyProcedures.pdf and https://www.huduser.gov/portal/datasets/fmr/PrinciplesforPHA-ConductedAreaRentSurveys.pdf.
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\12\ Although there are no longer 50th percentile FMRs, HUD must
calculate 50th percentile rents for the Success Rate Payment
Standard under 24 CFR 982.503(e).
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3. Areas where valid reevaluation requests are submitted must
continue to use FY 2022 FMRs whether the FY 2023 FMRs are lower or
higher than the FY 2022 FMRs. Following the comment period, HUD will
post a list, at https://www.huduser.gov/portal/datasets/fmr.html, of
the areas requesting reevaluations and where FY 2022 FMRs remain in
effect.
4. PHAs or other parties must supply data for reevaluations to HUD
no later than Friday January 6, 2023. All survey responses of rental
units gathered as part of the survey efforts should be delivered to
HUD. In addition to the survey data, HUD requires a current utility
schedule to evaluate the survey responses. Finally, HUD encourages PHAs
to evaluate their survey data to ensure the survey supports their
request. Should PHAs or their contractors undertake this evaluation,
HUD requests that this analysis also be submitted.
HUD will use the data delivered by January 6, 2023 to reevaluate
the FMRs and following the reevaluation, will post revised FMRs in
April of 2023 with an accompanying Federal Register notice stating the
revised FMRs are available, which will include HUD's responses to
comments filed during the comment period for this notice. On Monday,
January 9, 2023, HUD will post at https://www.huduser.gov/portal/datasets/fmr.html a listing of the areas that requested FMR
reevaluations but did not deliver data, making the FY 2023 FMRs
effective in these areas. HUD will incorporate any data supporting a
change in FMRs supplied after January 7, 2023 into FY 2023 FMRs.
Questions on how to conduct FMR surveys may be addressed to the Program
Parameters and Research Division at [email protected].
For small metropolitan areas without one-year ACS data and non-
metropolitan counties, HUD has developed a method using mail surveys
that is discussed on the FMR web page: https://www.huduser.gov/portal/datasets/fmr.html#survey_info. This method allows for the collection of
as few as 100 one-bedroom, two-bedroom, and three-bedroom units.
Other survey methods are acceptable in providing data to support
reevaluation requests if the survey method can provide statistically
reliable, unbiased estimates of gross rents paid of the entire FMR
area. In general, recommendations for FMR changes and supporting data
must reflect the rent levels that exist within the entire FMR area and
should be statistically reliable.
PHAs in non-metropolitan areas are required to get 100 eligible
survey responses which means they should have at least 5,000 rental
units. PHAs may conduct surveys of groups of non-
[[Page 53773]]
metropolitan counties to increase the number of rental units that are
surveyed, but HUD must approve all county-grouped surveys in advance.
HUD cautions that the resulting FMRs may not be identical for the
counties surveyed; each individual FMR area will have a separate FMR
based on the relationship of rents in that area to the combined rents
in the cluster of FMR areas. In addition, HUD advises that in counties
where FMRs are based on the combined rents in the cluster of FMR areas,
HUD will not revise their FMRs unless the grouped survey results show a
revised FMR statistically different from the combined rent level.
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 to be statistically representative of the
entire rental housing stock of the FMR area. Surveys must include units
at 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 current 5-year ACS data
should be used as a means of verifying if a sample is representative of
the FMR area's rental housing stock. Staff from HUD's Program
Parameters and Research Division will work with PHAs in areas
requesting re-evaluations to provide the minimum number of survey cases
required to ensure that data submitted for re-evaluation represent a
statistically valid sample.
A PHA or contractor that cannot obtain the recommended number of
sample responses after reasonable efforts should consult with HUD
before abandoning its survey; in such situations, HUD may find it
appropriate to relax normal sample size requirements, but in no case
will fewer than 100 eligible cases be considered.
Calculating Small Area FMRs Using Rent Distributions
HUD has developed guidance on how to provide data-supported
comments on Small Area FMRs using HUD's special tabulations of the
distribution of gross rents by unit bedroom count for ZIP Code
Tabulation Areas. This guidance is available at https://www.huduser.gov/portal/datasets/fmr.html in the FY 2023 FMR section
under the ``Documents'' tab and should be used by interested parties in
commenting on whether or not the level of Small Area FMRs are too high
or too low (i.e., Small Area FMRs that are larger than the gross rent
necessary to make 40 percent of the units accessible for an individual
ZIP code or that are smaller than the gross rent necessary to make 40
percent of the units accessible for a given ZIP code). HUD will post
revised Small Area FMRs after confirming commenters' calculations.
VII. Environmental Impact
This notice involves the statutorily required establishment of FMR
schedules and related procedures, which does not constitute a
development decision affecting the physical condition of specific
project areas or building sites. Accordingly, under 24 CFR 50.19(c)(6),
this notice is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
Accordingly, the Fair Market Rent Schedules, which will not be
codified in 24 CFR part 888, are available at https://www.huduser.gov/portal/datasets/fmr.html.
Solomon Greene,
Principal Deputy Assistant Secretary for Policy Development and
Research.
Fair Market Rents for the Housing Choice Voucher Program Schedule B--
General Explanatory Notes
Arrangement of FMR Areas and Identification of Constituent Parts
a. The Metropolitan and Non-Metropolitan FMR Area Schedule lists
FMRs alphabetically by state, by metropolitan area and by non-
metropolitan county within each state and are available at https://www.huduser.gov/portal/datasets/fmr.html.
b. The schedule lists the constituent counties (and New England
towns and cities) included in each metropolitan FMR area 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. The schedule lists two non-metropolitan counties alphabetically
on each line of the non-metropolitan county listings.
d. Similarly, the schedule lists the New England towns and cities
included in a non-metropolitan county immediately following the county
name.
[FR Doc. 2022-18905 Filed 8-31-22; 8:45 am]
BILLING CODE 4210-67-P