HUD Adjusts Housing Aid Funding Up 4.7% for Rents
Published Date: 6/3/2025
Notice
Summary
Starting in Fiscal Year 2025, public housing agencies (PHAs) will see their Housing Choice Voucher renewal funding adjusted by about 4.7% to keep up with rising rent costs. This change uses a smarter way to predict rent increases, mixing local rent data with national price trends. PHAs should get ready for these updates, which help make sure housing assistance keeps pace with the real world.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Voucher Renewal Funding Rises 4.71%
Starting in Fiscal Year 2025, national Per Unit Cost (PUC) for the Housing Choice Voucher program is expected to change by 4.71 percent, and that percent change is apportioned to each public housing agency (PHA) to set their FY2025 Renewal Funding Inflation Factors (RFIFs). Each PHA's RFIF is based on the change in Fair Market Rents (FMRs) for its operating area.
New Method for Apportioning Rent Changes
HUD changed the FY2025 methodology for forecasting the gross rent component by empirically weighting projected recent-mover rents (as measured by FMR) with an independent forecast of all-mover rents (as measured by the Consumer Price Index). This new mix will be used to produce the national PUC forecast that is apportioned to PHAs.
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