The Department of Housing and Urban Development (HUD) has published its Fair Market Rents (FMRs) for fiscal 2023. Nationally, they will increase by an average of approximately 10%, according to the agency.
Published annually, FMRs are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40% of the rental housing units in an area.
Click here to view the fiscal 2023 FMRs.
While the national average increase is about 10%, metros with recent large rent spikes will see corresponding increases to FMRs. For example, FMRs will increase by 33% in Phoenix, 23% in Tampa, Florida, and 15% in Miami, three of the metros that have seen the fastest rent growth since March 2020, according to HUD.
The agency noted that it is using private-sector data to estimate changes in FMRs “to address a temporary data availability challenge and to align with market conditions. The basic methodology that HUD uses to estimate FMRs remains the same.”
“One of the reasons that housing voucher holders are unable to use those vouchers is because the value of their vouchers has not kept up with rapid rent increases,” said HUD Secretary Marcia L. Fudge. “These new FMRs will make it easier for voucher holders facing this challenge to access affordable housing in most housing markets, while expanding the range of housing opportunities available to households. The new FMRs reflect the reality of housing unaffordability for many households, while supporting our efforts to improve affordability and accessibility for all Americans.”
HUD is required by law to set FMRs every year. FMRs, which go into effect Oct. 1, are used in several HUD programs, including to determine the maximum amount that a Housing Choice Voucher will cover.
A fact sheet on the FY23 FMRs is available here.
Source: Affordable Housing Finance