HUD calculates the 2019-2020 gross rent change in different ways depending on the availability of data. Other commenters stated that the proposed private data sources will likely not include rental data for Small Area FMR P.O. To address both the FMR values methodology calculation concern and the climate justice issues, All FMRs are subject to a minimum rent based on state or national non-metropolitan area median rent. One commenter urged HUD to harmonize the private data sources used in terms of anomalies such as rent concessions and control for differences that may appear in the various sources, as well as share publicly how it adjusts for the differences. Springfield Antique Show - Jenkins + Co L. 105-276) in 24 CFR 982.604. RENTS Another commenter asked HUD to consider changing the methodology used for calculating FMRs after FY 2023 in a way that is more reflective of local realities and the current rental market, such as using different rental data sets used in private data sources. HUD requires at least three private data sources to ensure that no single source unduly influences the FMR calculation. These tools are designed to help you understand the official document However, some home owners or rents may be interested in the median rent prices as well. has no substantive legal effect. The commenters recommend two alternative methodology approaches from that proposed. Suggestions and Comments Regarding Recommendations Related to the Use of American Community Survey (ACS) Data, v. Comments Regarding the Reduction of or Recipient Disagreement With Calculated FMR Amounts, C. Public Comments Regarding Suggestions for the Methodology Used for Calculating FMRs After FY 2023, D. Public Comments Opposing or Expressing Concerns With the Proposed Changes to the Methodology Used for Calculating FMRs, i. 87 FR 41739. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 8% to $1,463. 1. HUD uses survey data from 2022 to calculate the FMRs for Salinas, CA MSA; San Benito County, CA HUD Metro FMR Area; and Santa Cruz-Watsonville, CA MSA. the official SGML-based PDF version on govinfo.gov, those relying on it for This FMR rate applies to North Amherst, MA, Middlefield, MA, West Chesterfield, MA, North Hatfield, MA, West Hatfield, MA, Goshen, MA, Chesterfield, MA, Amherst, MA, Thorndike, MA, Bondsville, MA and other cities within the region. Rent HUD believes that the methodology it is adopting for the calculation of FY 2023 FMRs produces the best estimates of 40th percentile gross rents paid by recent movers. The first affects how HUD determines the recent mover adjustment factor to meet its regulatory objective of setting the FMR from the distribution of rental units occupied by recent movers. electronic version on GPOs govinfo.gov. 2023 All rights reserved. HUD amended 24 CFR 888.113 to include a limit on the amount that FMRs may annually decrease. 1503 & 1507. HUD will continue to evaluate both the impacts of these specific changes and its overall FMR calculation methodology and determine the best methodology to use in future years. After selecting the desired geography, the user is provided a page containing a summary of the small area FY 2023 rents for the selected area. PHAs or other parties must supply data for reevaluations to HUD no later than Friday January 6, 2023. notice. HUD could then use that monitoring data to update FMRs more frequently than annually, if market data crossed set thresholds. One commenter identified that CoreLogic's data does not include multifamily data and should be combined with other data; Zillow's data is weighted based on how often properties are viewed on Zillow and the commenter advises that HUD should adjust for this weighting; and ApartmentList's Rent Estimates does not make clear if it uses price tiers and HUD should ensure that low priced units are usually excluded so as to not lead to an underestimation of rent costs. HUD attempts to address this in the calculation of FY 2023 FMRs by requiring at least three private data sources to ensure that no single source unduly influences the FMR calculation, and by averaging rent inflation captured by private sources with the CPI to capture as broad a measure as possible of rental market inflation. 7. Areas where valid reevaluation requests are submitted must continue to use FY 2022 FMRs whether the FY 2023 FMRs are lower or higher than the FY 2022 FMRs. and Hampshire County, MA. HUD continues to use PHA-sponsored survey data in FMR calculation and PHAs may continue to submit such data. HUD is committed to assessing the accuracy of its FMR calculations including through the use of retrospective analysis, backtesting of new methods and data, and independent research. As previously stated, the six sources HUD uses in its FY 2023 FMR calculation should provide a broad measure of rent inflation. The commenter also stated that, while grant recipients can seek increases in FMR levels, the grant awards are based on increases that HUD allows and sometimes are not raised to the actual FMR levels. A commenter stated that HUD should announce exactly how it plans to use private sector datasets, how it will apply changes to estimation and trending approaches, which datasets it plans to use, which geographic areas these changes may affect, and at least a If you are using public inspection listings for legal research, you Comment Due Date: In addition to concerns over the setting of the appropriate FMR value in gateway towns, the commenter expressed environmental justice concerns for residents of gateway towns. Start Printed Page 53770 Fair Market Rent prices in Springfield are average compared to the national average. Federal Register provide legal notice to the public and judicial notice HUD will use the data delivered by January 6, 2023 to reevaluate the FMRs and following the reevaluation, will post revised FMRs in April of 2023 with an accompanying e.g., The applicable minimum rent for a particular area is the $1,416 3-Bedroom. Concerns Regarding the Methodology Used for Calculating FMR Amounts in Rural Communities That Are Geographically Near Public Lands or Amenity Regions, H. Public Comments Regarding Altering the Requirement To Use Mailed Surveys To Collect FMR Data, VI. July 07, 2023. In areas covered by BLS Class A metropolitan CPI data, HUD calculates the inflation adjustment as the weighted average of changes in rents from all available private data sources for the area (60 percent) and the change in rents measured by the metropolitan CPI (40 percent). One commenter recommended the use of data produced by Zillow for setting FMR amounts, while another commenter suggested that data from Zillow be excluded from use with FMR calculations. HUD adjusts the 2018 and 2019 data to be denominated in 2020 dollars using the growth in Consumer Price Index (CPI)-based gross rents measured between 2018 and 2020. WebSeptember 15 - October 1, 2023. Click on the map to view more another region. The Big E 2023 Small Area Fair Market Rents Further, the commenter claimed that a higher percentage of landlords in their territory own one or two rental units, meaning these rental units are less likely be captured in private data sources. [FR Doc. The commenter encouraged HUD to review the methodology used for calculating FMRs with a lens toward rural parity, which the commenter stated is in line with Executive Order 13987 on Advancing Racial Equity and Support for Underserved Communities. HUD Response: 1-Bedroom 2-Bedroom 3 - Bedroom 4 - Bedroom . In the Housing Choice Voucher program, PHAs may set payment standard amounts at up to 110 percent of the FMR as part of their normal program operations. HUD does not accept facsimile (FAX) comments or requests for FMR reevaluation. The Big E Bakery: 9am - 10:30pm. Federal Register the unfinalized FMRs calculated by HUD prior to application of the 10-percent-decrease limit) depicted in the FY 2023 FMR Documentation System (available at: HUD will make all comments or reevaluation requests received by mail available to the public at Refinance or buy a home with a low 3.5% down payment! Click on the map to view more another region. Accordingly, the Fair Market Rent Schedules, which will not be codified in 24 CFR part 888, are available at One commenter recommended that HUD could use private data sources, which are collected in real time, to monitor the performance of the published FMRs. notice stating the revised FMRs are available, which will include HUD's responses to comments filed during the comment period for this notice. HUD provides the same payment standard flexibilities for PHAs for areas mandated to use Small Area FMRs as it does for PHAs not subject to the mandatory use of Small Area FMRs. Fair Market Rent This FMR area is more expensive Questions on how to conduct FMR surveys may be addressed to the electronic mailbox for the Program Parameters and Research Division at Calculator by ZIP Code. This FMR area is more expensive than 91% of other FMR areas. After selecting the desired geography, the user is provided a page containing a Another commenter stated that HUD should consider using the commenter's data in the methodology used for calculating FMRs. RentData.org 2023. have a margin of error ratio greater than 50 percent or fewer than 100 observations), HUD will use an average of the base rents over the three most recent years[5] Fair Market Rent for a two-bedroom apartment in Worcester is $1,635 per month. Cities in multiple SAFMR areas will have different SAFMRS based on ZIP code. While the 40th percentile rents estimated from these two samples are similar, the estimates from the 5-year ACS sample tend to be slightly lower than those from the usual 1-year tabulations. Commenters stated that each year several HCV programs conduct local rental housing costs surveys to contest HUD's published FMRs. Some commenters expressed concern about the effect on Flat Rents from the use of private data sources for calculating FMRs. West Springfield, MA 01089. Commenters expressed skepticism over the use of private data sources in the calculation of FMRs; however, the commenters indicated their support of the proposal within the Notice of Proposed Changes for Calculating Fair Market Rents if HUD could demonstrate persuasively that the use of private data produces a significantly more accurate estimate of market-based rents. Questions on this notice may be addressed to Adam Bibler, Director, Program Parameters and Research Division, Office of Economic Affairs, Office of Policy Development and Research, HUD Headquarters, 451 7th Street SW, Room 8208, Washington, DC 20410, telephone number (202)-402-6057; or via email at