Portland Metro: 15,000+ HUD Vouchers Support $144 Million Increase in Property Value; Rents to Landlords Increased by $9.3 Million Every Year.

[Revised to correct posting time].
This is the 365th post on this blog; that's more than a post a day since i started the blog last July 7th. (HERE was the first post).

I wanted to make this a special post so I did a little digging to show how an increase in HUD Housing Voucher Fair Market rents increases rent payments to property owners on a ongoing basis and how property values are also increased in the entire Portland Metro area.

[Tease...There will be an even more substantial anniversary post covering state spending for housing during the week of July 7th]

In a prior post I alerted that HUD had published proposed FY 2009 Fair Market Rents; for the Portland metro area the new 2 Bedroom Fair Market Rent is $809, an increase of $52 per month.

This upcoming FMR change provides a good opportunity to estimate the property value supported by the increase in Fair Market Rents for HUD vouchers in the Portland metro area and the increase in rent/subsidy paid to property owners.

Finding the number of vouchers for all the housing authorities in the Portland Metro area took a bit of digging , but with that count in hand the calculation can then be done fairly simply.
My estimates can be found in the PDF file HERE: Some highlights showing the impact of the $52 monthly increase for the 15,012 HUD Vouchers in the Portland Metro area:

1. The increase in the 2 BR Fair Market Rents support an increase of $144 million in property value, using a 6.5% Cap Rate.
2. On a per unit basis, the increase in the 2 BR Fair Market Rents alone will support an increase of $9,600 in property value.
3. The 2 BR Fair Market Rents increase means that rent payments/subsidies to owners of voucher units will now increase every year from now on by more than $9.3 Million. [I.E. Don't think of a FMR increase as a one time bonus, it is the proverbial "gift that keeps on giving"].