HUD Releases 2020 Fair Market Rents
The US Department of Housing & Urban Development (HUD) recently released the 2020 Fair Market Rents (FMRs), which will become effective October 1, 2019 unless HUD receives a valid request for reevaluation of specific area FMRs.
This year’s notice describes the methods used to calculate the FY 2020 FMRs and enumerates the procedures for Public Housing Agencies (PHAs) and other interested parties to request reevaluations of their FMRs as required by the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This notice also discusses the comments received on the Notice of Proposed Changes to the Methodology Used for Estimating Fair Market Rents.
According to the notice, HUD is replacing the national trend factor with local and regional trend factors in order to improve the accuracy of the FMRs. In addition, for Small Area FMRs, HUD is including the “neighboring policy” as the next step when a ZIP Code Tabulation Area (ZCTA) does not have reliable data. This improvement determines if there is reliable data for bordering ZCTAs and uses this data before going to county-based Small Area FMRs.
For questions on FMRs, please contact Colleen Bloom, Director of Housing Operations for LeadingAge, at email@example.com.