Fair Market Rents Proposed for Fiscal Year 2012

Fair Market Rents Proposed for Fiscal Year 2012

The proposed Fiscal Year (FY) 2012 Fair Market Rents (FMRs) were published in the Federal Register on Friday, August 19, 2011. A 30-day comment period is in place to ensure that final FMRs can be published by October 1. After the public comment period, the final FMRs are used in the Housing Choice Voucher, the Moderate Rehabilitation, the project-based voucher, and other programs that require location-specific economic data.

The FMRs are estimated at 40th and 50th percentile rent levels. Some areas are granted higher FMRs (based on the 50th percentile rather than the 40th percentile of local rent distribution) to achieve deconcentration of units in high poverty areas by voucher holders. An area that qualifies for a 50th percentile is set at that level for three years, after which deconcentration progress is evaluated. For the proposed FY 2012 FMRs, 21 FMR areas are eligible for the 50th percentile.

In addition to announcing the period for public comments on all published FMRs, the Federal Register notice lists public comments and HUD responses to a March 9, 2011 Federal Register Notice (76 FR 12985) regarding calculating the trend factor in FMRs. This notice also provides FMRs for the small area FMR demonstration project in Dallas, Texas (provided in an addendum to the Schedule B table). Four applications to participate in this demonstration program are currently being reviewed and further information will be made available at a later date. Finally, this notice announces a request for comments on a proposal to establish a date for publishing HUD’s Median Family Incomes and Income Limits. Comments on this proposal are due September 19, 2011.

Section 8(c)(1) of the United States Housing Act of 1937 requires the Secretary to publish FMRs periodically, but not less than annually, to be effective on October 1 of each year. The tables, documentation system, and a copy of the preamble are available from HUD USER at www.huduser.gov/datasets/fmr.html.