Wednesday, June 6, 2018

MAP: HUD Voucher Zip Code Based Rents Could be Substantially Higher in Some Portland Metro Zip Codes.

HUD’s new small area rent policy allows a housing authority in a metropolitan area to selectively adopt (without requiring any HUD approval) zip code area voucher rents up to 110% of the published small area rent. (HUD's SAFMR web page with resource material is HERE.). 

I assume that even if a housing authority adopts higher zip code based voucher rents, rents for individual units will still be subject to rent reasonable determinations, so higher zip code based rents are not guaranteed for any individual unit or project. 

The trade off for housing authorities with zip code based rents are increased costs and the possibility of fewer families being served vs. increase housing metro wide housing choice for voucher families. 

Note that these SAFMR's can also be used with project based vouchers. This could provide an additional subsidy to help increase the supply of housing units with long term affordability for those very low income households served by the voucher program. (67% of all HUD assisted Oregon is assisted via the voucher program). 

Housing authorities in metropolitan areas of Oregon are not required, and may choose not to, but they do now have the authority to adopt small area rents. 

Embedded below you will see a map I created (which can also be found at this tiny URL:  

Both the link and the map show Portland metro zip codes in Oregon with the maximum allowable small area voucher rents (110% of the SAFMR 2 BR rent). that COULD be adopted by local housing authorities. (for ZIP Codes in Multnomah county Home Forward may have even more discretion as they are HUD designated Moving to Work agency).

You can click on any zip code in the map and see the 110% permissible 2 BR small area rent and the ratio that rent has to the standard 2 BR HUD FMR for the Portland metro area ($1,330).  

The zip codes in neon green have the highest permissible 2 BR rents computed at 110% of the 2 BR small area rents. Zip codes in yellow would have highest permissible 2 BR SAFMR’s that are below 100% of the standard 2 BR fair market rent. (My understanding is that housing authorities can pick and choose the zip codes in which they want to use SAFMR's). 

So for example zip code 97034 in Lake Oswego has a permissible small area 2 BR rent of $2,074 (154% of the standard PDX 2 BR FMR, and 157% of the Clackamas County adopted payment standard of $1,304). [ Apartmentlist data as of June shows the median two bedroom rent (without a utility allowance) in Lake Oswego as $1,950]

Zip code 97231, that includes Sauvie Island, has an even higher permissible rent of $2,200 (165% of the standard FMR).

Originally created and posted on the Oregon Housing Blog.

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