Small Area Fair Market Rent
The fair market rent (FMR) is used as a guideline by public housing authorities (PHA) and other administrators when determining the maximum voucher payment (known as the payment standard) in the Housing Choice Voucher (HCV) program.
Beginning with FY2018 HUD will begin requiring designated areas to use Small Area Fair Market Rent.. With the SAFMRs, HUD is attempting to help create actual incentives for tenants to move out of lower opportunity areas. Unlike the 50th percentile FMRs, the SAFMRs will be based on the actual rent of each zip code.
More information can be found here.
In the DFW area the value of the vouchers, established by SAFMR is below competitive rental rates in many areas. This gap is one reason why some property owners won't accept vouchers. CPSH is working with leaders in the community encourage support of rent studies of local zip codes to show HUD our area needs significant increases in SAFMR. For more information about this project, go here.
"The use of Small Area FMRs is expected to give [Housing Credit Voucher] tenants access to areas of high opportunity and lower poverty areas by providing a subsidy that is adequate to cover rents in those areas, thereby reducing the number of voucher families that reside in areas of high poverty concentration," said HUD in November 2017.