Title
Resolution to Approve the Amended FY27 Payment Standard for the Ann Arbor Housing Commission Voucher Programs
Memorandum
The Department of Housing and Urban Development (HUD) annually sets Fair Market Rents (FMRs), to assist with determining reasonable rents and payment standards in the Housing Choice Vouchers (HCV) including special purpose voucher programs. FMRs are gross rent estimates representing rent and utility costs in private sector rental housing, pegged at approximately the 40th percentile, not including new construction in the past 2 years and not including subsidized housing.
The AAHC must review its payment standards schedule annually and amend it as needed to ensure that the payment standards remain within the HUD-basic range. As a MTW agency AAHC may set its payment standards between the range of 80% and 120% of the HUD FMRs, or As a MTW agency AAHC may set its payment standards between the range of 80% and 150% of the HUD SAFMRs, according to the Moving to Work Operations Notice Part Six <https://www.hud.gov/sites/dfiles/PIH/documents/FinalMTWExOpsNoticePartVIWeb.pdf>.
PHAs may choose to establish separate payment standards <https://www.hud.gov/sites/dfiles/PIH/documents/HCV_Guidebook_Payment_Standards_November_2020.pdf> for each ZIP code area. In lieu of establishing a unique payment standard schedule for each ZIP code area within its jurisdiction, a PHA may wish to establish payment standard schedules for “grouped” ZIP code areas. Adopting groups and establishing one payment standard for all program types, helps to minimize the administrative burden of managing multiple payment standard areas.
The FMR for Washtenaw County increased by about 6-8% across all bedroom sizes compared to last year. Even with this increase, our current payment standards remain higher than HUD’s proposed FMR. Keeping the existing payment standards places them at about 101-103% of the FMR, which is within HUD’s allowable range.
In Monroe County, the FMR decreased by 1-2% for 0-3 bedroom units and increased slightly (less than 1%) for 4-9 bedroom units. Our current payment standards are still higher than HUD’s proposed FMR. Maintaining these standards keeps them at roughly 103-108% of the FMR, which is also within HUD’s basic range.
For Wayne County, the SAFMR increased by an average of 3% from last year. Our current payment standards continue to exceed the proposed SAFMR for most bedroom sizes and ZIP codes. By keeping these standards in place, they fall between 83-115% of the SAFMR, which remains acceptable under the MTW activity.
Staff recommend maintaining the same 2026 payment standard for Washtenaw County, Wayne County, and Monroe County for the Housing Choice Voucher programs including: Veterans Affairs Supportive Housing Vouchers (VASH), Emergency Housing Voucher (EHV), Family Unification Voucher (FUP) and Project Based Vouchers (PBV) as well as Mainstream (Section 811) Vouchers.
...Staff
Prepared by: Misty Hendershot, Voucher Program Manager
Approved by: Jennifer Hall, Executive Director
Body
WHEREAS, the Department of Housing & Urban Development (HUD) annually establishes and publishes Fair Market Rents (FMRs) and Small Area Fair Market Rent (SAFMR) by locale; and
WHEREAS, the Payment standard must be set between 80-120% of the Fair Market Rent and 80-150% of the Small Area Fair Market Rent for respective areas, and
WHEREAS, the 2027 FMRs and SAFMRs will take effect on October 1, 2026; and
WHEREAS, HUD requires the revised payment standards to be established within 90 days of HUD published FMRs or SAFMRs; and
WHEREAS, the AAHC Board last adopted a payment standard to 110% FMR for Washtenaw County and 105% of the FMR for Wayne and Monroe Counties effective August 1, 2026; and
WHEREAS, staff recommend maintaining the August 1, 2026 Payment Standards for Washtenaw, Monroe, and Wayne counties, and
NOW THEREFORE BE IT RESOLVED, that the Ann Arbor Housing Commission Board approves a payment standard within the basic range of the FMR for HCV, VASH, EHV, FUP, MS5, and PBV programs to take effect January 1, 2027, for all other applicable certifications in accordance with the Ann Arbor Housing Commission’s Administrative Plan.