Fair Market Rents for Fiscal Year 2007

From: HUD USER News
 
HUD published the Fiscal Year (FY) 2007 Fair Market Rents
(FMRs) in the Federal Register on September 27, 2006.
They are effective as of October 1, 2006. FY2007 FMR
documentation is available at https://www.huduser.gov/datasets/fmr.html.
 
Items of note in FY2007 FMRs:
 
o The methodology for determining FMR subareas of
OMB-defined metropolitan areas was revised slightly
to better accommodate HUD Income Limit estimation.
This change resulted in a decreased two-bedroom FMR
in one area (Manchester, New Hampshire, 1.2 percent
decrease). A detailed explanation of this change is
located in the preamble to the proposed FY2007 FMRs
published in the Federal Register on June 15, 2006.
 
o Random Digit Dialing (RDD) surveys were conducted
in several Gulf Coast housing markets (Beaumont-
Port Arthur, Dallas, Hattiesburg, Houston, Jackson,
Little Rock, San Antonio, and Shreveport). The
survey questionnaire used a shorter period for
recent mover responses (6 months instead of 15
months) to measure the impact of the evacuees from
hurricanes Katrina and Rita on the rental-housing
markets in these areas. The survey results for
nearly all areas indicated that FMRs should be
unchanged from proposed FY2007 FMRs. The RDD survey
for Hattiesburg, Mississippi indicated that the FMR
should be reduced, but HUD elected to leave the
final FMR unchanged from the proposed FY2007 FMR
due to uncertainty in the housing market as demand
pressures increase with rebuilding activity in
Mississippi.
 
o A RDD in Baltimore, Maryland resulted in a decrease
in the FMR. A RDD in Island County, Washington
resulted in an increase in the FMR.
 
o Four FMR areas regained their 50th percentile
status in FY2007. These areas are: Dallas, Texas;
Fort Lauderdale, Florida; San Diego-Carlsbad-San
Marcos, California; and West Palm Beach-Boca Raton,
Florida.
 
FMRs serve as the basis for the payment standards used to
calculate subsidies under the Housing Choice Voucher
program, to determine initial renewal rents for expiring
project-based Section 8 contracts, to determine initial
rents for housing assistance payment contracts in the
Moderate Rehabilitation Single Room Occupancy program,
and to serve as a rent ceiling in the HOME rental
assistance program.
 
The website above provides complete documentation of the
development of the final FY 2007 Fair Market Rents
(FMRs) for any area of the country selected by the user.
After selecting the desired location, the user is
provided a summary of how the final FY 2007 FMRs were
developed and updated starting with the formation of the
final FY 2007 FMR Areas from the metropolitan Core-Based
 Statistical Areas (CBSAs) as established by the Office
 of Management and Budget.
 
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