Proposed Fiscal Year 2011 Fair Market Rents

The proposed Fiscal Year (FY) 2011 Fair Market Rents (FMRs) were published in the Federal Register on Wednesday, August 4, 2010. A 30-day comment period has been provided to ensure that final FMRs are published by October 1. Subject to public comment, the proposed 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 the 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 2011 FMRs, 18 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 announces the FMRs for the small area FMR demonstration project in Dallas, TX (provided in an addendum to the Schedule B table). These FMRs will be used to operate the Section 8 voucher program in the Dallas HMFA (HUD Metro FMR area); for all other programs, the area-wide FMR listed in Schedule B should be used. Comments on the small area FMR demonstration project that were collected under a notice published May 18, 2010 will be discussed in a forthcoming notice specifically on the small area FMRs.

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.