On August 31, the U.S. Department of Housing and Urban Development (HUD) announced two actions that together will enable more families to rent a healthy, stable home at an affordable cost: publishing Fair Market Rents (FMRs) for Fiscal Year (FY) 2024 and releasing an additional $113 million in Housing Choice Vouchers to public housing agencies to help 9,500 families to meet these growing costs.
Fair Market Rents (FMRs) For Fiscal Year (FY) 2024
HUD is required by law to set fair market rents every year, which go into effect on October 1st. FMRs are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40 percent of the rental housing units in an area. FMRs are used in several HUD programs, including determining the maximum amount a Housing Choice Voucher will cover. Increases in Fair Market Rents help families find homes of their choosing in competitive housing markets. The national mean increase in FMRs is 12.2 percent; this is on top of an approximately 10 percent increase in FY 2023. Click here to view the FY24 FMRs. FAQs on the FY24 FMRs are available here.
Because rents have risen quickly recently, voucher holders are increasingly unable to find units available to rent within HUD payment standards. The new FMR levels announced will enable the voucher program to keep up with rent increases in the private market. These new FMRs will allow voucher holders to access and secure leases in more units so that they can benefit from the housing affordability and stability that vouchers provide.
Texas Metro Areas with Significant Increases in Fair Market Rents (FMR)
WACO, TX HUD METRO
ODESSA, TX MSA
MIDLAND, TX HUD METRO
AUSTIN-ROUND ROCK, TX MSA
EL PASO, TX MSA
Texas receives $33.8 Million in Housing Choice Voucher (HCV) funding
The Office of Public and Indian Housing (PIH) also announced an additional $113 million in Housing Choice Voucher funding awards for 118 high-performing public housing agencies in 36 states. These funds will enable these agencies to provide rental assistance to 9,500 additional households in the coming year.
The Housing Choice Voucher program enables families to afford rental units in the private market. Given recent rental cost increases, families who receive vouchers are experiencing greater difficulty successfully using their vouchers to find affordable, safe, and quality housing. The new FMR levels announced today – on top of an approximately 10 percent increase nationally in FY 2023 – will help the voucher program keep up with rent increases in the private market, expand the number of affordable units, and help more families rent homes at an affordable cost.