HUD Releases Proposed FY 2016 FMRs
HUD recently issued its proposed fair market rents, or FMRs, for fiscal year 2016. In general, the FMR for an area is an amount that would be needed to pay the rent and utilities of a privately owned, decent, and safe rental housing unit of a modest nature with suitable amenities. HUD is required to publish the FMRs at least annually to be effective on Oct. 1 of each year. FMRs are used to determine payment standards for the Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, initial rent for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy program, and rent ceilings in the HOME rental assistance program.
In addition, the FMRs influence income and rent limits for the Low-Income Housing Tax Credit (LIHTC) program, tax-exempt bond (TEB) programs, and other affordable housing programs.
The Proposed FY16 FMRs can be viewed here.