“Today’s action helps realize a dream that has been deferred for too long. By expanding the housing choices of 800,000 households of modest means, HUD is increasing opportunities and working to break down longstanding, harmful systems of segregation” — SECRETARY MARCIA L. FUDGE
The U.S. Department of Housing and Urban Development (HUD) has announced a major policy change that will expand housing and neighborhood choices for more than 800,000 households or 45% of families using Housing Choice Vouchers to find and secure affordable housing. This change will allow voucher holders to access more diverse and opportunity-rich neighborhoods across the country, while breaking down systems of segregation and inequality.
WHAT IS THE POLICY CHANGE?
The policy change requires 41 more metropolitan areas to use Small Area Fair Market Rents (SAFMRs) to calculate the maximum rent that vouchers will cover at the ZIP code level instead of the entire metropolitan area. This means that voucher payments will vary depending on the local market conditions and rents of different neighborhoods, rather than being based on a single average rent for the whole metro area.
Find the list of required metropolitan areas here.
This policy will enable voucher holders to choose from a wider range of neighborhoods that suit their preferences and needs, including higher-rent neighborhoods with better schools, jobs, transportation, health care, and other amenities. It will also ensure that a portion of units in every neighborhood are affordable to tenants renting with a voucher, creating more mixed-income communities and reducing concentrations of poverty.
WHY IS THIS POLICY IMPORTANT?
This policy is important because it will increase opportunities and outcomes for low-income families, especially children, who can benefit from living in low-poverty, well-resourced neighborhoods. Research shows that neighborhoods have a strong impact on families’ health, economic opportunity, and well-being. For instance, when children in low-income families grow up in low-poverty, well-resourced neighborhoods, they are much more likely to attend college and earn more as young adults. They also have lower rates of teen pregnancy, obesity, asthma, and mental health problems.
This policy will also help address the longstanding problem of racial and economic segregation in American cities, which has been exacerbated by historical and current policies and practices that limit the housing choices of low-income people of color. By expanding the housing choices of 800,000 households of modest means, HUD is working to create more inclusive and equitable communities.
HOW WILL THIS POLICY BE IMPLEMENTED?
While 65 metropolitan areas will be required to use Small Area Fair Market Rents to calculate rental assistance, HUD calculates and publishes Small Area Fair Market Rents for all metropolitan areas, which Public Housing Agencies (PHAs) can voluntarily adopt. Under the 2016 rule, PHAs in 24 metropolitan areas were required to use SAFMRs to administer vouchers. Since then, additional PHAs have voluntarily adopted SAFMRs or are utilizing SAFMRs as exception payment standards to increase neighborhood choice for their voucher families.
HUD will provide guidance and technical assistance to PHAs that are required or choose to implement SAFMRs. HUD will also monitor the effects of SAFMRs on housing choice, mobility, affordability, and fair housing.
HUD Secretary Marcia L. Fudge said: “Today’s action helps realize a dream that has been deferred for too long. By expanding the housing choices of 800,000 households of modest means, HUD is increasing opportunities and working to break down longstanding, harmful systems of segregation. While the housing crisis remains a challenge, implementing innovative solutions is crucial and will foster a more sustainable future within our communities.”
For more information about the policy change and its impacts, you can read the notice here.
Learn more about the HUD Section 8 Housing Choice Voucher program
The Section 8 Program was authorized by Congress in 1974 and includes the housing choice voucher program. The program is administered locally by public housing agencies and funded by the federal government. This is the major program for assisting very low-income families afford housing in the private market.
The assistance is provided to the families directly and they are able to find their own housing – single family homes, townhouses and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to subsidized housing.