Editing Section 8 (housing) (section)

== Fair Market Rents ==
Fair Market Rents (FMRs) are calculated to determine how much a landlord is able to accept for rent of a unit to a Section 8 voucher recipient. FMRs are gross rental rates and dictate the maximum rental rate to be agreed upon in a lease document.<ref name=":2">{{Cite web| title=Fair Market Rents - Introductory Overview | url=https://www.huduser.gov/portal/sites/default/files/pdf/fmr-overview.pdf | archive-url=https://web.archive.org/web/20191028052547/https://www.huduser.gov/portal/sites/default/files/pdf/fmr-overview.pdf | archive-date=2019-10-28}}</ref> The calculation of FMRs is based on a standard quality rent from the five year [[American Community Survey]], as well as a recent mover adjustment, which is the relationship between the standard quality for five years and the one year recent mover rents. FMRs also include a [[Consumer price index|CPI]] adjustment and a trend factor adjustment. The trend factor adjustment is how HUD expects rental rates to grow.<ref name=":1">{{cite web |title=Fair Market Rents {{!}} HUD USER |url=https://www.huduser.gov/portal/datasets/fmr.html |access-date=2019-11-18 |website=www.huduser.gov}}</ref><ref name=":2" />

FMRs include all major utilities (heat, electricity, etc.), but does not include telephone, cable, satellite television, or internet service. Utilities are included in FMRs whether the obligation of payment is under the tenant or the landlord.<ref name=":2" /> FMRs can be found using HUD's Database.

=== Small Area Fair Market Rents ===
The Small Area Fair Market Rents Program (SAFMRP) was officially implemented by HUD in January 2017.<ref name=":4">{{Cite web | url=https://www.huduser.gov/portal/datasets/fmr/fmr2016f/SAFMR-Final-Rule.pdf | title=Department of Housing and Urban Development | website=www.huduser.gov}}</ref> This system is an update to the system HUD uses to calculate Fair Market Rents (FMRs) in metropolitan areas. The purpose is to examine metropolitan area FMRs by ZIP code, as opposed to in total. HUD stated that this program is aimed to allow voucher recipients to move into higher opportunity areas and reduce the concentration of voucher recipients in a given metropolitan area.<ref name=":4" /><ref name=":3">{{cite web |title=Small Area Fair Market Rents - HUD Exchange |url=https://www.hudexchange.info/programs/public-housing/small-area-fair-market-rents/ |access-date=2019-11-18 |website=www.hudexchange.info}}</ref><ref>{{Cite web|url=https://www.theatlantic.com/business/archive/2015/06/section-8-is-failing/396650/|title=America's Shame: How U.S. Housing Policy Is Failing the Country's Poor|last=Semuels|first=Alana|date=2015-06-24|website=The Atlantic|language=en-US|access-date=2019-11-18}}</ref> While the program was originally intended to be mandatory for several metropolitan areas immediately, the requirement for the use of SAFRMs was delayed to October 1, 2019.<ref>{{Cite web| title=Suspension of Small Area Fair Market Rent (FMR) Designations | url=https://www.huduser.gov/portal/portal/sites/default/files/pdf/SecretarysDetermination.pdf | archive-url=https://web.archive.org/web/20191028052457/https://www.huduser.gov/portal/portal/sites/default/files/pdf/SecretarysDetermination.pdf | archive-date=2019-10-28}}</ref> SAFMRs can now be found through the [https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2020_code/select_geography_sa.odn HUD database].

The implementation of this program follows a demonstration project coordinated by HUD in 2010. The project included the following Public Housing Authorities (PHAs): The Housing Authority of the County of Cook (IL), the City of Long Beach (CA) Housing Authority, the Chattanooga (TN) Housing Authority, the Town of Mamaroneck (NY) Housing Authority, and the Housing Authority of Laredo (TX).<ref name=":4" /><ref name=":3" />

An early report states that the effects of this program need to be analyzed over a long period of time before determining results. Vincent Reina, Arthur Acolin, and Raphael W. Bostic published an early examination of the new SAFMRP in 2019. This study finds varied results in the SAFMRP based on different metropolitan areas. Two areas of note are the highest performing city in the study and the lowest, Dallas, TX, and Chattanooga, TN, respectively. The authors argue that Dallas performed well with the SAFMRP because the city was required by court order to implement the program, and the program has been in place for longer than all other cities in the study. The authors state that the benefits of the SAFMRP change over time and analysis of the program must include a time series analysis for all effects.<ref name=":5">{{Cite journal|last1=Reina|first1=Vincent|last2=Acolin|first2=Arthur|last3=Bostic|first3=Raphael W.|date=2019-01-02|title=Section 8 Vouchers and Rent Limits: Do Small Area Fair Market Rent Limits Increase Access to Opportunity Neighborhoods? An Early Evaluation|journal=Housing Policy Debate|volume=29|issue=1|pages=44–61|doi=10.1080/10511482.2018.1476897|s2cid=158926517 |issn=1051-1482}}</ref>

The authors also explain why Chattanooga, TN may have performed the lowest in the study. Two reasons include the fact that most rental units were already inaccessible areas, and most residential areas in Chattanooga are low opportunity, therefore voucher recipients did not have increased choice with the implementation of the program.<ref name=":5" />