HUD Announces FY 2020 FMRs that Incorporate for Local Trends

Requests for Reassessment of Metropolitan Area or County FMRs Due by September 30

On August 30, the U.S. Dept. of Housing and Urban Development (HUD) announced through its Federal Register the FY20 Fair Market Rents (FMRs). Click here for the FY 2020 FMR Summary for New Jersey. As a basis of comparison, click here for the Final FY2019 New Jersey FMRs.

This summary of New Jersey 2020 FMRs breaks down FMRs by both 11 Metropolitan Areas that are located in or include part of New Jersey and also by each of New Jersey’s 21 counties.  FMRs for efficiency, 1-BR, 2-BR, 3-BR and 4-BR apartments are available for each Metropolitan Area and county. 
 
FMRs are used to determine payment standards for the Housing Choice Voucher (HCV) program, initial renewal rents for some expiring project-based Section 8 contracts, initial rents in the Moderate Rehabilitation Single Room Occupancy program and rent ceilings for the HOME Investment Partnerships program and the Emergency Solutions Grants program.  FMRs also calculate flat rents in public housing. 
 
After looking at the local FY 2020 FMRs for the Metropolitan Area or county where your local community is located, do you think that the FMR is not correct?  There is an opportunity for you to request a review of the concerning FMR(s.)  Public housing agencies (PHAs) and other interested parties may comment on the FY 2020 FMRs and request a reevaluation within 30 days of their publication.
 
FMRs are based on the most recent American Community Survey (ACS) data, trended to 2020. 
 
To better reflect regional difference across the United States, this year, HUD modified its methodology to incorporate more local and regional trend factors rather than one national trend factor.  This modification to HUD’s methodology may help assist areas of New Jersey were the rental market is affected by local and regional trends
 
To give a little historical background about the reevaluation of FMRs, in the fall of 2018, twelve Metropolitan Areas and counties across the U.S. requested reevaluations of their FY 2019 FMRs.  And in April 2019, FMRs in ten of those Metropolitan Areas and counties were revised.  (Please note that the two areas who did have their FMRs revised did not supply the data needed to reevaluate the areas’ FMR.)
 
Here a few important things to keep in mind when considering making a request for reevaluation of your FMR:
 
  • PHAs representing at least half of the voucher tenants in multi-jurisdictional FMR areas must agree that the reevaluation is necessary; 
  • The requestor must be able to supply HUD with data more recent than the 2017 ACS on gross rents of standard quality rental units; and 
  • HUD will use the data provided to them to reevaluate FMRs.

This is the timeline for requesting reevaluations of your local FY 2020 FMRs:

  • Monday, September 30, 2019 – Deadline for reevaluation requests must be submitted by September 30, 2019, the end of the 30-day comment period. 
  • Wednesday, October 2, 2019 (on or around this date) – HUD will post a list of areas requesting reevaluations, keeping FY19 FMRs in effect in those areas. 
  • January 10, 2020  – Deadline for data for reevaluations to be supplied to HUD 
  • January 13, 2020 – HUD will post a list of areas failing to deliver data 
  • Announcement of any revisions to FMRS to follow
Does your community have questions about how to conduct FMR surveys (data collection)? Contact Marie L. Lihn or Peter B. Kahn of the Program Parameters and Research Division at pprd@hud.gov
 
Comments and requests for reevaluations must be submitted here or by mail to: HUD Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street, SW, Room 10276, Washington, DC 20410-0500. HUD does encourage electronic submissions.
 
The FY20 FMRs and related documents are available here.
 
Click here for the June 2019 HUD notice with local and regional trend factors to determine FMRs from HUD that outlines the proposed changes.