8.
City Council Work Session
- Meeting Date:
- 09/11/2018
- From:
- Stacy Saltzburg, City Clerk
- Department:
Co-Submitter:
TITLE:
Presentation of Fair Market Rents by U.S. Department of Housing and Urban Development.
DESIRED OUTCOME:
Information only.
EXECUTIVE SUMMARY:
Peter Kahn, Director, Economic and Market Analysis Division, was invited by the Council to present on Fair Market Rents. Mr. Kahn is here to provide that presentation and information regarding Fair Market Rents in Flagstaff and Coconino County.
Fair Market Rents (FMRs) are used to determine payment standard amounts for the Housing Choice Voucher program, the calculation of flat rents in Public Housing units and other housing related payment standards. The U.S. Department of Housing and Urban Development (HUD) annually estimates FMRs for Office of Management and Budget (OMB) defined metropolitan areas such as the Flagstaff AZ Metropolitan Statistical Area, consisting of all of Coconino County.
FMRs are gross rent estimates. They include the shelter rent plus the cost of all tenant-paid utilities, except telephones, cable or satellite television service, and internet service. HUD sets FMRs to assure that a sufficient supply of rental housing is available to program participants. To accomplish this objective, FMRs must be both high enough to permit a selection of units and neighborhoods and low enough to serve as many low-income families as possible.
HUD’s published FMRs have been disconnected with the actual market rental rates in Flagstaff for more than the last eight years. A spring 2018 Rental Attainability Report published by Housing Solutions of Northern Arizona found average rent for a two-bedroom unit was $1,441 and the associated FMR for the same unit is $1,129.
Fair Market Rents (FMRs) are used to determine payment standard amounts for the Housing Choice Voucher program, the calculation of flat rents in Public Housing units and other housing related payment standards. The U.S. Department of Housing and Urban Development (HUD) annually estimates FMRs for Office of Management and Budget (OMB) defined metropolitan areas such as the Flagstaff AZ Metropolitan Statistical Area, consisting of all of Coconino County.
FMRs are gross rent estimates. They include the shelter rent plus the cost of all tenant-paid utilities, except telephones, cable or satellite television service, and internet service. HUD sets FMRs to assure that a sufficient supply of rental housing is available to program participants. To accomplish this objective, FMRs must be both high enough to permit a selection of units and neighborhoods and low enough to serve as many low-income families as possible.
HUD’s published FMRs have been disconnected with the actual market rental rates in Flagstaff for more than the last eight years. A spring 2018 Rental Attainability Report published by Housing Solutions of Northern Arizona found average rent for a two-bedroom unit was $1,441 and the associated FMR for the same unit is $1,129.