Recently, the Center on Budget and Policy Priorities and the Poverty and Race Research Action Council published a Small Area Fair Market Rent (FMR) implementation guide titled “A Guide to Small Area Fair Market Rents (SAFMRs): How State and Local Housing Agencies Can Expand Opportunity for Families in All Metro Areas.” The guide provides background on Small Area FMRs–which are FMRs that are calculated over zip codes instead of broader metropolitan areas to incentivize the deconcentration of poverty in metropolitan areas–as well as advice to PHAs on how to effectively implement them.
For those PHAs that are already familiar with HUD’s Guidance on Small Area FMRs and HUD’s Implementing Small Area FMRs Guidebook, there are still some new ideas in this guide. For example, this guidebook notes that to protect families in low-rent zip codes, which will see a decline in FMR, a PHA may apply a portion of the reduction and then hold families harmless after the initial reduction. A footnote helpfully explains that though this option is “not mentioned in HUD’s notice or guidebook . . . [it] is permitted by the applicable regulation. 24 C.F.R. § 982.505(c)(3)(ii) [Hyperlink added].”
The CBPP and PRRAC Small Area FMR Implementation Guide can be found here.