HUD issued a notice seeking public comment on proposed changes to the methodology used for calculating Fair Market Rents (FMRs). HUD is proposing two material changes to the calculation of FMRs for FY 2023 to: (1) deal with the temporary lack of availability of 2020 ACS 1-year data; and (2) provide additional local rent inflation data that better conform FMR estimates to changes in rental markets in the wake of the COVID-19 pandemic. Both proposed changes could narrowly introduce private sector rental data from multiple sources into the FMR calculation process in limited and statistically valid situations where private sector rental data have demonstrated that they more accurately estimate changes in rental markets. These changes would apply only to FY 2023 FMRs. If you would like NAHMA to submit comments on the proposed changes, members should provide NAHMA staff comments by COB August 10, 2022. Members can also submit their feedback individually through the Federal eRulemaking Portal at http://www.regulations.gov.
The Notice on Proposed Changes to Methodology Calculation for FMRs for Fiscal Year 2023 is available here.