HUD Releases Final FY 2015 Fair Market Rents

On Oct. 3, HUD issued the final 2015 Fair Market Rents (FMRs). FMRs are used by HUD to set rents for the Housing Choice Voucher program and the Project-Based Voucher program. Project-based housing assistance payment (HAP) contracts also refer to FMRs for eligibility purposes in the Option 1 Entitlement Mark Up to Market rent increase mechanism. The FY 2015 FMRs are effective as of Oct. 1, 2014.

While the FY 2015 FMRs are based on 2009 Office of Management and Budget (OMB) metropolitan area definitions, HUD expects to incorporate OMB’s updated definitions, which were issued in 2013, in next year’s FMRs. HUD will publish a notice in early 2015 to discuss this implementation and to solicit comments on possible measures to reduce the concentration of voucher tenants, including alternatives to the current 50th percentile program such as Small Area FMRs.