As portions of the country see economic improvement, there are some who are being left behind in the housing market. For instance, Playground Apartments recently announced it has been sold to a new company. The new rent will be higher than the fair market rate allowed by the U.S. Department of Housing and Urban Development’s (HUD) housing commissions, meaning those with Housing Choice Vouchers current living there will no longer afford their apartments.
The averaged fair market rental rate is different from the price the market can bear rate. Rental prices vary greatly from neighborhood to neighborhood.
As apartment complexes are being sold, long-time landlords are adjusting the rents to what the market will bear and in many places, rental properties are more valuable in this new market, which also has many more available renters.
People with low incomes and those with Housing Choice Vouchers can only use their vouchers at places that rent for the fair market rate. As a result, families who have rented apartments in this particular complex, some even for 10 years, are scrambling to find a new place where they can afford to live.
According to HUD, the fair market rate for a one-bedroom is $710 a month. The two-bedroom fair market rate went from $821 in 2013 to $843 to 2014. These are average prices for a large geographic area. Specific cities, townships and towns may have much different prices. While the fair market rate increased $22, many people are seeing their rent increase $70 and $80 a month. You can find out what the fair market rate is in your area.