To address escalating rents, additional aid will be available for 2024 housing voucher programs, the U.S. Department of Housing and Urban Development (HUD) announced last week.

Last Thursday, August 31, HUD published fair market rents (FMRs) for fiscal year 2024, which begins October 1. On average, FMRs will increase about 12% nationwide (that follows a 10% increase on average for fiscal year 2023). As a result, housing voucher beneficiaries will likely see a higher maximum payment level and potentially expand their housing choices.

In recent years, the voucher program struggled to keep up with rent increases in the private market, resulting in a decline in use. According to a SmartAsset report issued in July, private rents increased an average of 5.45% year over year, although some areas saw increases of greater than 30% and others actually experienced decreases. New York saw an 8.8% increase statewide.

The 2024 FY FMRs are expected to help expand the number of affordable units for those using the Housing Choice Voucher program, which saw a 40,000 increase in use by families from October through May, according to HUD. (Lebowitz, Megan. HUD releases new aid for low-income families to keep up with rising rents. August 31, 2023. News.yahoo.com.)

In addition, this week, HUD will release $113 million in housing choice voucher funds for public housing agencies in 36 states, including New York, which is due to receive about $887,000. (View HUD’s press release to see voucher allocations by state.)

According to a press release, HUD expects the combined impact of the FMR increase and additional housing choice voucher funds “will enable more families to rent a healthy, stable home at an affordable cost.”

To view the FY24 FMRs by state and then county, visit the HUD Office of Policy Development and Research website. Scroll down and click the maroon button that says: “Click here for FY2024 FMRs.” Follow the prompts on the next screen to select a state and county or Metropolitan area. You’ll see how FMRs for efficiency, one-, two-, three- and four-bedroom apartments compare from FY2023 to FY2024.

For answers to questions about the FY24 FMRs, visit HUD’s Frequently Asked Questions.

While getting acquainted with the FY FMRs and potential new funds, you and your team can count on RBT CPAs for all of your accounting, tax, audit, and advisory needs. To learn more, give us a call today.

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