23770 Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / Proposed Rules

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

24 CFR Part 888

[Docket No. FR–4680–N–01]

Fair Market Rents for the Housing

Choice Voucher Program and

Moderate Rehabilitation Single Room

Occupancy Program: Fiscal Year 2002

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of proposed fiscal year

(FY) 2002 fair market rents (FMRs).

SUMMARY: Section 8(c)(1) of the United

States Housing Act of 1937 requires the

Secretary to publish FMRs annually to

be effective on October 1 of each year.

FMRs are used to determine payment

standard amounts for the Housing

Choice Voucher program, to determine

initial renewal rents for some expiring

project-based Section 8 contracts, and to

determine initial rents for HAP

contracts in the Moderate Rehabilitation

Single Room Occupancy program. Other

programs may require use of FMRs for

other purposes. Today’s notice proposes

revised FMRs that reflect estimated 40th

and 50th percentile rent levels trended

to April 1, 2002.

DATES: Comments Due Date: July 9,

2001.

Electronic Data Availability

This Federal Register Notice is

available electronically from the HUD

news page: http://www.hudclips.org/

cgi/index.cgi. Federal Register Notices

also are available electronically from the

U.S. Government Printing Office web

site: http://www.access.gpo.gov/

suldocs/aces/aces140.html.

ADDRESSES: Interested persons are

invited to submit comments regarding

HUD’s estimates of the FMRs as

published in this Notice to the Office of

the General Counsel, Rules Docket

Clerk, Room 10276, Department of

Housing and Urban Development, 451

Seventh Street SW., Washington, DC

20410. Communications should refer to

the above docket number and title and

should contain the information

specified in the ‘‘Request for

Comments’’ section. To ensure that the

information is fully considered by all of

the reviewers, each commenter is

requested to submit two copies of its

comments, one to the Rules Docket

Clerk and the other to the Economic and

Market Analysis Staff in the appropriate

HUD Field Office. A copy of each

communication submitted will be

available for public inspection and

copying during regular business hours

(7:30 a.m.—5:30 p.m. Eastern Time) at

the above address.

FOR FURTHER INFORMATION CONTACT:

Gerald Benoit, Director, Real Estate and

Housing Performance Division, Office of

Public and Assisted Housing Delivery,

telephone (202) 708–0477, is

responsible for decisions on how fair

market rents are used. For technical

information on the methodology used to

develop fair market rents or a listing of

all fair market rents, please call HUD

USER at 1–800–245–2691 or access the

information on the HUD Web site,

http:\\www.huduser.org/datasets/

fmr.html. Further questions on the

methodology may be addressed to Marie

Lihn, Economic and Market Analysis

Division, Office of Economic Affairs,

telephone (202) 708–0590, (e-mail:

mariell.llihn@hud.gov). Hearing-or

speech-impaired persons may use the

Telecommunications Devices for the

Deaf (TTY) by contacting the Federal

Information Relay Service at 1–800–

877–8339. (Other than the ‘‘800’’ TTY

number, telephone numbers are not toll

free.)

SUPPLEMENTARY INFORMATION: Section 8

of the United States Housing Act of

1937 (the Act) (42 U.S.C. 1437f)

authorizes housing assistance to aid

lower income families in renting decent,

safe, and sanitary housing. Housing

assistance payments are limited by

FMRs established by HUD for different

areas. In the voucher program, the FMR

is used to determine the ‘‘payment

standard amount’’ used to calculate the

maximum monthly subsidy for an

assisted family (see Section 982.503.) In

general, the FMR for an area is the

amount that would be needed to pay the

gross rent (shelter rent plus utilities) of

privately owned, decent, safe, and

sanitary rental housing of a modest

(non-luxury) nature with suitable

amenities.

Publication of FMRs

Section 8(c) of the Act requires the

Secretary of HUD to publish FMRs

periodically, but not less frequently

than annually. HUD’s regulations

provide that HUD will develop FMRs by

publishing proposed FMRs for public

comment and, publish final FMRs after

evaluating public comments (see 24 CFR

888.115).

Schedule B of the proposed FY 2002

FMR schedules at the end of this

document lists the fair market rents for

existing housing, including housing

assisted under the housing choice

voucher program. Schedule D lists

FMRs for the rental of manufactured

home spaces in the housing choice

voucher program for areas where HUD

has approved FMRs greater than 40

percent of the 2-bedroom FMR, based on

public comments.

For the purpose of determining the

maximum initial gross rent (at the

beginning of the HAP contract term) for

a unit assisted in the Section 8 moderate

rehabilitation Single Room Occupancy

(SRO) program, the fair market rent is

120 percent of the applicable existing

housing fair market rent in Schedule B

(see 24 CFR 882.408(a)). For the purpose

of determining renewal gross rents for a

HAP contract under the moderate

rehabilitation program (other than a

contract under the Section 8 moderate

rehabilitation SRO program), the FMR is

the applicable existing housing fair

market rent in Schedule B.

Method Used to Develop FMRs

FMR Standard

FMRs are gross rent estimates; they

include shelter rent and the cost of

utilities, except telephone. HUD sets

FMRs to assure that a sufficient supply

of rental housing is available to program

participants. To accomplish this

objective, FMRs must be both high

enough to permit a selection of units

and neighborhoods and low enough to

serve as many families as possible.

The level at which FMRs are set is

expressed as a percentile point within

the rent distribution of standard quality

rental housing units. The current

definition used is the 40th percentile

rent for most areas, the dollar amount

below which 40 percent of the standard

quality rental housing units rent. The

40th percentile rent is drawn from the

distribution of rents of units which are

occupied by recent movers (renter

households who moved into their unit

within the past 15 months). Newly built

units less than two years old are

excluded, and adjustments have been

made to correct for the below market

rents of public housing units included

in the data base.

The interim rule establishing 50th

percentile FMRs was published on

October 2, 2000 (65 FR 58870) and

became effective on December 1, 2000.

HUD set fair market rents for 39 areas

at the 50th percentile rent (i.e., the

median rent) effective January 2, 2001

(66 FR 162). HUD set the 50th percentile

FMRs to give lower-income families

who participate in the voucher program

access to a broader range of housing

opportunities throughout a metropolitan

area. FMRs have been increased to the

50th percentile rent in those 39 areas

metropolitan areas based on the criteria

established in the interim rule, which

seeks to promote residential choice,

help families mover closer to job growth

areas, and deconcentrate poverty.

Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / Proposed Rules 23771

Paragraph 888.113(c) provides:

(c) Setting FMRs at the 50th percentile rent

to provide a broad range of housing

opportunities throughout a metropolitan

area.

(1) HUD will set the FMRs at the 50th

percentile rent for all unit sizes in each

metropolitan FMR area that meets all of the

following criteria at the time of annual

publication of the FMRs:

(i) 70 percent or fewer of the census tracts

with at least 10 two bedroom rental units are

census tracts in which at least 30 percent of

the two bedroom rental units have gross rents

at or below the two bedroom FMR set at the

40th percentile rent;

(ii) The FMR area contains at least 100

census tracts; and

(iii) 25 percent or more of the tenant-based

rental program participants in the FMR area

reside in the 5 percent of the census tracts

within the FMR area that have the largest

number of program participants.

(2) If the FMRs are set at the 50th

percentile rent in accordance with paragraph

(c)(1) of this section, HUD will set the FMRs

at the 50th percentile rent for a total of three

years.

(i) At the end of the three-year period, HUD

will continue to set the FMRs at the 50th

percentile rent only so long as the

concentration measure for the current year is

less than the concentration measure at the

time the FMR area first received an FMR set

at the 50th percentile rent. HUD will publish

FMRs based on the 40th percentile rent for

FMR areas that do not qualify for continued

use of the 50th percentile rent.

(ii) For purposes of this section, the term

‘‘concentration measure’’ means the

participants in the FMR area who reside in

the 5 percent of the census tracts within the

FMR area that have the largest number of

program participants.

(iii) FMR areas that do not meet the test for

continued use of FMRs set at the 50th

percentile will be ineligible to use FMR set

at the 50th percentile for a period of three

years.

(iv) A PHA whose jurisdiction includes

one or more FMR areas that are no longer

eligible to use FMRs set at the 50th percentile

may be eligible for a higher payment

standard under Section 982.503(f).

Schedule B of this document lists the

proposed 2002 FMRs for all areas,

including FMRs for the 39 FMR areas

where the FMR is set at the 50th

percentile rent level (as specified in

Section 888.113(c)), and other areas,

where the FMR is set at the 40th

percentile rent. An asterisk in Schedule

B identifies the 39 FMR areas for which

HUD has set 50th percentile FMRs.

HUD has set 50th percentile FMRs for

the following metropolitan FMR areas:

Albuquerque, NM

Atlanta, GA

Austin-San Marcos, TX

Baton Rouge, LA

Bergen-Passaic, NJ

Buffalo-Niagara Falls, NY

Chicago, IL

Cleveland-Lorain-Elyria, OH

Dallas, TX

Denver, CO

Detroit, MI

Fort Lauderdale, FL

Fort Worth-Arlington, TX

Grand Rapids-Muskegon-Holland, MI

Houston, TX

Kansas City, MO–KS

Las Vegas, NV–AZ

Miami, FL

Minneapolis-St. Paul, MN–WI

Newark, NJ

Norfolk-Virginia Beach-Newport News,

VA–NC

Oakland, CA

Oklahoma City, OK

Orange County, CA

Philadelphia, PA–NJ

Phoenix-Mesa, AZ

Richmond-Petersburg, VA

Sacramento, CA

Salt Lake City-Ogden, UT

San Antonio, TX

San Diego, CA

San Jose, CA

St. Louis, MO–IL

Tampa-St. Petersburg-Clearwater, FL

Tulsa, OK

Ventura, CA

Washington, DC–MD–VA

West Palm Beach-Boca Raton, FL

Wichita, KS

Data Sources

HUD used the most accurate and

current data available to develop the

FMR estimates. The sources of survey

data used for the base-year estimates

are:

(1) the 1990 Census, which provides

statistically reliable rent data for all

FMR areas;

(2) the Bureau of the Census’

American Housing Survey (AHS), which

is used to develop between-Census

revisions for the largest metropolitan

areas and which have accuracy

comparable to the decennial Census;

and

(3) Random Digit Dialing (RDD)

telephone surveys of individual FMR

areas, which are based on a sampling

procedure that uses computers to select

statistically random samples of rental

housing.

The base-year FMRs are updated

using trending factors based on

Consumer Price Index (CPI) data for

rents and utilities or HUD regional rent

change factors developed from RDD

surveys. Annual average CPI contract

rent and residential utility cost data are

available individually for 96

metropolitan FMR areas and for the four

Census Regions. RDD regional rent

change factors are developed annually

for the metropolitan and

nonmetropolitan parts of each of the 10

HUD regions. The utility component of

RDD surveys is updated using CPI

regional utility cost change factors. The

RDD factors are used to update the base

year estimates for all FMR areas that do

not have their own local CPI survey.

Utility Costs

HUD’s standard methodology for

incorporating changes in utility costs

into FMRs relies on the most current

CPI data on annual changes in

residential utility costs. Annual rather

than point-to-point monthly

comparisons (e.g., July 1999 to July

2000) are used because monthly utility

price indices are volatile and often not

reflective of the annualized cost of

utilities. The annual cost indices take

into account changes in prices and

consumption patterns over the course of

a year.

In developing the proposed FMRs for

FY 2002, HUD has determined that the

standard methodology does not

adequately capture the unusual

increases in natural gas prices that

occurred at the end of calendar year

2000. (The standard methodology does

capture increases in fuel oil prices,

however.) The standard FMR

methodology captures a 17 percent

increase in natural gas prices from 1999

to 2000, but December 1999 to

December 2000 prices increased by an

average of 37 percent and Department of

Energy projections for 2002 are very

similar to the December 2000 prices. For

purposes of estimating FY 2002 FMRs,

the Department has therefore modified

the natural gas inflation component to

use December-to-December costs when

available, and to use second half to

second half of the year figures for CPI

areas where December 2000 data were

not available. This is a one-time change

made to respond to unusual

circumstances; HUD expects to return to

the standard methodology next year.

The impact of this change is modest

for most areas for three reasons. First,

the change accounts for increases in the

price of natural gas per unit of

consumption, but not for increases in

consumption associated with the

unusually cold winter of 2000–2001.

Second, on a national level, natural gas

comprises only 27 percent of utility

costs, and utility costs typically average

8–15 percent of total rent costs in

metropolitan areas. This means, for

instance, that a 50 percent increase in

natural gas prices only increases FMRs

by a little over 1 percent in the typical

metropolitan area. Finally, since FMRs

reflect monthly housing costs, the

increase in FMRs due to this

methodological change is spread across

the course of an entire year rather than

23772 Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / Proposed Rules

just the December-February heating

season. The impact of this change

would appear to be more substantial if

it were aggregated over a three or four

month heating season, rather than the

entire year.

State Minimum FMRs

FMRs are established at the higher of

the local 40th percentile rent level or

the Statewide average of

nonmetropolitan counties, subject to a

ceiling rent cap. These State minimums

have the effect of increasing FMRs for a

number of nonmetropolitan areas plus a

small number of metropolitan areas.

Bedroom Size Adjustments

FMRs have been calculated separately

for each bedroom size category. For

areas whose FMRs are based on the

State minimums, the rents for each

bedroom size are the higher of the rent

for the area or the Statewide average of

nonmetropolitan counties for that

bedroom size. For all other FMR areas,

the bedroom intervals are based on 1990

Census rent relationships for the

specific area.

Exceptions have been made for some

areas with local bedroom size rent

intervals below an acceptable range. For

those areas the intervals selected were

the minimums determined after outliers

had been excluded from the distribution

of bedroom intervals for all

metropolitan areas. Higher ratios

continue to be used for three-bedroom

and larger size units than would result

from using the actual market

relationships. This is done to assist the

largest, most difficult to house families

in finding program-eligible units.

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. FMRs for single room

occupancy (SRO) units are 0.75 times

the 0 bedroom FMR.

Random Digit Dialing (RDD) Rent

Surveys

RDD surveys are used to obtain

statistically-reliable FMR estimates for

selected FMR areas. This telephone

survey technique involves drawing

random samples of renter units

occupied by recent movers. RDD

surveys exclude public housing units,

other assisted units for which the

market rent cannot be determined, units

built in the past two years, seasonal

units, non-cash rental units, and those

owned by relatives. A HUD analysis has

shown that the slight downward RDD

survey bias caused by including some

rental units that are in substandard

condition is almost exactly offset by the

slight upward bias that results from

surveying only units with telephones.

Approximately 12,000–15,000

telephone numbers need to be contacted

to achieve the target survey sample level

of 200 eligible recent mover responses.

RDD surveys have a high degree of

statistical accuracy; there is a 95 percent

likelihood that the recent mover rent

estimates developed using this approach

are within 3 to 4 percent of the actual

rent value. Virtually all of the estimates

are within 5 percent of the actual value.

Today’s notice includes proposed

FMR revisions based on RDD surveys

conducted in early 2001 for the

following areas:

Proposed FMR increases above normal

update factor:

Cleveland County, NC

Jackson County, NC

Knox County, IN

Louisville, KY

Minneapolis-St. Paul, MN

Muncie, IN

Payne County, OK

Phoenix, AZ

Polk County, NC

Rutherford County, NC

San Diego, CA

San Francisco, CA

San Luis Obispo-Atascadero-Paso

Robles, CA

St. Louis, MO–IL

St. Mary’s County, MD

Stockton-Lodi, CA

Vallejo-Fairfield-Napa, CA

Proposed FMR decreases:

Dallas, TX

Detroit, MI

Hartford, CT

Newark, NJ

Survey Supports Increasing FMRs by

normal update factor:

Chicago, IL

Greensboro-Winston-Salem-High

Point, NC

McDowell County, NC

Milwaukee, WI

Philadelphia, PA–NJ

Riverside-San Bernadino, CA

San Jose, CA

Manufactured Home Space FMRs

In the tenant-based voucher program,

a family that owns a manufactured

home may receive assistance for the

rental of a manufactured home space.

The FMRs used to calculate the housing

assistance payment for rental of a

manufactured home space are generally

40 percent of the applicable Section 8

existing housing FMRs for two-bedroom

units. Cost of utilities is now included

in the manufactured home space rent

(see 24 CFR 888.113(e)).

HUD will consider modifications of

manufactured home space FMRs where

public comment demonstrates that the

40 percent FMRs are not adequate. In

order to be accepted as a basis for

revising the manufactured home space

FMRs, comments must contain

statistically valid survey data that show

the 40th percentile space rent for the

entire FMR area.

The published manufactured home

space FMRs are updated annually using

the same data used to update the other

FMRs.

Request for Comments

HUD seeks public comments on FMR

levels for specific areas. Comments on

FMR levels must include sufficient

information (including local data and a

full description of the rental housing

survey methodology used) to justify any

proposed changes. Changes may be

proposed in all or any one or more of

the bedroom-size categories on the

schedule. Recommendations and

supporting data must reflect the rent

levels that exist within the entire FMR

area.

HUD recommends the use of

professionally-conducted Random Digit

Dialing (RDD) telephone surveys to test

the accuracy of FMRs for areas where

there is a sufficient number of Section

8 units to justify the survey cost of

$12,000–$15,000. Areas with 500 or

more program units usually meet this

cost criterion, and areas with fewer

units may meet it if actual two-bedroom

rents are significantly different from the

FMRs proposed by HUD. In addition,

HUD has developed a version of the

RDD survey methodology for smaller,

nonmetropolitan PHAs. This

methodology is designed to be simple

enough to be done by the PHA itself,

rather than by professional survey

organizations, at a cost of $5,000 or less.

PHAs in nonmetropolitan areas may,

in certain circumstances, do surveys of

groups of counties. All grouped county

surveys must be approved in advance by

HUD. PHAs are cautioned that the

resulting FMRs will not be identical for

the counties surveyed; each individual

FMR area will have a separate FMR

based on the relationship of rents in that

area to the combined rents in the cluster

of FMR areas. In addition, PHAs are

advised that counties whose FMRs are

based on the State minimum will not

have their FMRs revised unless the

grouped survey results show a revised

FMR above the State minimum level.

PHAs that plan to use the RDD survey

technique should obtain a copy of the

appropriate survey guide. Larger PHAs

should request HUD’s survey guide

entitled ‘‘Random Digit Dialing Surveys;

Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / Proposed Rules 23773

A Guide to Assist Larger Public Housing

Agencies in Preparing Fair Market Rent

Comments.’’ Smaller PHAs should

obtain a guide entitled ‘‘Rental Housing

Surveys; A Guide to Assist Smaller

Public Housing Agencies in Preparing

Fair Market Rent Comments.’’ These

guides are available from HUD USER on

1–800–245–2691, or from HUD’s

Worldwide Web site, in Microsoft Word

or Adobe Acrobat format, at the

following address: http://

www.huduser.org/datasets/fmr.html.

HUD prefers, but does not mandate,

the use of RDD telephone surveys, or the

more traditional method described in

the survey guide intended for small

PHAs along with the simplified RDD

methodology. Other survey

methodologies are acceptable as long as

the surveys submitted provide

statistically reliable, unbiased estimates

of the gross rent. Survey samples should

preferably be randomly drawn from a

complete list of rental units for the FMR

area. If this is not feasible, the selected

sample must be drawn so as to be

statistically representative of the entire

rental housing stock of the FMR area. In

particular, surveys must include units of

all rent levels and be representative by

structure type (including single-family,

duplex and other small rental

properties), age of housing unit, and

geographic location. The decennial

Census should be used as a starting

point and means to verify whether the

sample is representative of the FMR

area’s rental housing stock.

Local rental housing surveys

conducted with alternative methods

must include the following

documentation:

—Identification of the 40th percentile or

50th gross rent (gross rent is rent

including the cost of utilities) and the

actual distribution (or distributions, if

more than one bedroom size is

surveyed) of the surveyed units, rankordered by gross rent.

—An explanation of how the rental

housing sample was drawn and a

copy of the survey questionnaire,

transmittal letter, and any publicity

materials.

—An explanation of how the contract

rents of the individual units surveyed

were converted to gross rents. (For

RDD-type surveys, HUD requires use

of the Section 8 utility allowance

schedule.)

—An explanation of how the survey

excluded units built within two years

prior to the survey date.

—The date the rent data were collected

so that HUD can apply a trending

factor to update the estimate to the

midpoint of the applicable fiscal year.

If the survey has already been trended

to this date, the date the survey was

conducted and a description of the

trending factor used.

—Copies of all survey sheets.

Since FMRs are based on standard

quality units and units occupied by

recent movers, both of which are

difficult to identify and survey, HUD

will accept surveys of all rental units

and apply appropriate adjustments.

Most surveys cover only one- and

two-bedroom units, in which case HUD

will make the adjustments for other size

units consistent with the differentials

established on the basis of the 1990

Census data for the FMR area. When

three- and four-bedroom units are

surveyed separately to determine FMRs

for these unit size categories, the

commenter should multiply the 40th

percentile survey rents by 1.087 and

1.077, respectively, to determine the

FMRs. The use of these factors will

produce the same upward adjustments

in the rent differentials as those used in

the HUD methodology.

Accordingly, the Fair Market Rent

Schedules, which will be codified in 24

CFR part 888, are proposed to be

amended as follows:

Dated: May 2, 2001.

Mel Martinez,

Secretary.

Fair Market Rents for the Housing

Choice Voucher Program

Schedules B and D—General

Explanatory Notes

1. Geographic Coverage

a. Metropolitan Areas.—FMRs are

housing market-wide rent estimates that

are intended to provide housing

opportunities throughout the geographic

area in which rental housing units are

in direct competition. The FMRs shown

in Schedule B are determined for the

same areas as the Office of Management

and Budget’s (OMB) most current

definitions of metropolitan areas, with

the exceptions discussed in paragraph b.

HUD uses the OMB Metropolitan

Statistical Area (MSA) and Primary

Metropolitan Statistical Area (PMSA)

definitions for FMR areas because they

closely correspond to housing market

area definitions.

b. Exceptions to OMB Definitions.—

The exceptions are counties deleted

from several large metropolitan areas

whose revised OMB metropolitan area

definitions were determined by HUD to

be larger than the housing market areas.

The FMRs for the following counties

(shown by the metropolitan area) are

calculated separately and are shown in

Schedule B within their respective

States under the ‘‘Metropolitan FMR

Areas’’ listing:

Metropolitan Area and Counties Deleted

Chicago, IL: DeKalb, Grundy and

Kendall Counties

Cincinnati-Hamilton, OH–KY–IN:

Brown County, Ohio; Gallatin, Grant

and Pendleton Counties in Kentucky;

and Ohio County, Indiana

Dallas, TX: Henderson County

Flagstaff, AZ–UT: Kane County, UT

New Orleans, LA: St. James Parish

Washington, DC–MD–VA–WV: Berkeley

and Jefferson Counties in West

Virginia; and Clarke, Culpeper, King

George and Warren counties in

Virginia

c. Nonmetropolitan Area FMRs.—

FMRs also are established for

nonmetropolitan counties and for

county equivalents in the United States,

for nonmetropolitan parts of counties in

the New England states, and for FMR

areas in Puerto Rico, the Virgin Islands,

and the Pacific Islands.

Nonmetropolitan area FMRs are set at

the higher of the local 40th percentile

rent level or the Statewide average of

nonmetropolitan counties. (The State

minimum also affects a small number of

metropolitan areas whose rents would

otherwise fall below the State

minimum.)

d. Virginia Independent Cities.—

FMRs for the areas in Virginia shown in

the table below were established by

combining the Census data for the

nonmetropolitan counties with the data

for the independent cities that are

located within the county borders.

Because of space limitations, the FMR

listing in Schedule B includes only the

name of the nonmetropolitan county.

The complete definitions of these areas

including the independent cities are as

follows:

Virginia Nonmetropolitan County FMR

Area and Independent Cities Included

County/Cities

Alleghany: Clifton Forge and

Covington

Augusta: Staunton and Waynesboro

Carroll: Galax

Frederick: Winchester

Greensville: Emporia

Henry: Martinsville

Montgomery: Radford

Rockbridge: Buena Vista and

Lexington

Rockingham: Harrisonburg

Southhampton: Franklin

Wise: Norton

2. Bedroom Size Adjustments

Schedule B shows the FMRs for 0-

bedroom through 4-bedroom units. The

FMRs for unit sizes larger than 4

23774 Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / Proposed Rules

bedrooms 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. FMRs for single-roomoccupancy (SRO) units are 0.75 times

the 0 bedroom FMR.

3. FMRs for Manufactured Home Spaces

FMRs for manufactured home spaces

in the housing choice voucher program

are 40 percent of the two-bedroom

existing housing program FMRs, with

the exception of the areas listed in

Schedule D whose manufactured home

space FMRs have been modified on the

basis of public comments. Once

approved, the revised manufactured

home space FMRs establish new baseyear estimates that are updated annually

using the same data used to estimate the

existing housing FMRs. The FMR area

definitions used for the rental of

manufactured home spaces in the

housing choice voucher program are the

same as the area definitions used for

other FMRs.

4. Arrangement of FMR Areas and

Identification of Constituent Parts

a. The FMR areas in Schedule B are

listed alphabetically by metropolitan

FMR area and by nonmetropolitan

county within each State. The exception

FMRs for manufactured home spaces in

Schedule D are listed alphabetically by

State.

b. The constituent counties (and New

England towns and cities) included in

each metropolitan FMR area are listed

immediately following the listings of the

FMR dollar amounts. All constituent

parts of a metropolitan FMR area that

are in more than one State can be

identified by consulting the listings for

each applicable State.

c. Two nonmetropolitan counties are

listed alphabetically on each line of the

nonmetropolitan county listings.

BILLING CODE 4210–62–P

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[FR Doc. 01–11697 Filed 5–8–01; 8:45 am]

BILLING CODE 4210–62–C