Fair Market Rents are established by HUD each year for the Section 8 Program. For more information about the annual calculation of Fair Market Rents, visit the HUD’s Office of Policy Development and Research.
HOME Rent Limit data are available from FY 1998 to the present.
Per 24 CFR Part 92.252, HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of:
- The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or
- A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions.
In rental projects with five or more HOME-assisted rental units, twenty (20) percent of the HOME-assisted units must be occupied by very low-income families and meet one of following rent requirements:
- The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a).
- The rent does not exceed 30 percent of the family’s adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family’s adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program.
The FMRs for unit sizes larger than 4 bedroom are calculated by adding 15 percent to the 4 bedroom FMR for each extra bedroom. For example, the FMR for a 5 bedroom unit is 1.15 times the 4 bedroom FMR, and the FMR for a 6 bedroom unit is 1.30 times the 4 bedroom FMR, and so on…
- 5 BR = 1.15 x 4 BR FMR
- 6 BR = 1.30 x 4 BR FMR
- 7 BR = 1.45 x 4 BR FMR
- 8 BR = 1.60 x 4 BR FMR
- 9 BR = 1.75 x 4 BR FMR
- 10 BR = 1.90 x 4 BR FMR
- 11 BR = 2.05 x 4 BR FMR
- 12 BR = 2.20 x 4 BR FMR
These HOME rent limits are effective June 1, 2015, and are applicable to new HOME leases and lease renewals after that date.
Attached is an update for state of California. For other states, please sign-in and request for a copy for your state.
Resources at Amazon Corner:
- Real Estate Investment
- Real Estate Finance for Residential and Commercial
- Buying Real Estate Without Cash or Credit
- Buying First Home: Tips, First Home Owners Grant & First Mortgage Guide, Home Buying Process
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