GRAND RAPIDS, Mich. — People in the Grand Rapids-area who are eligible for housing assistance will have more rental options open to them due to a change in the area's fair market rents (FMR).
The U.S. Department of Housing and Urban Development (HUD) recently increased the FMR for the area by nine percent after a local study on FMR was conducted by the Grand Rapids Housing Commission (GRHC).
This means that the city's Housing Choice Voucher will be worth more and allow eligible renters be more competitive when applying for housing.
Eligible renters are required to pay 30% of their monthly adjusted gross income for rent and utilities and the voucher covers the rest up to the amount FMR. The tenant is required to pay any additional amount above the FMR.
"Prior to these increases in fair market rents, they may not find a unit within their rental range. Now, by being able to increase the amount of rents that we can pay under this program, it makes their voucher their housing voucher way more competitive in the market with our private landlords," said GRHC Executive Director Lindsey Reames.
The HUD originally increased the FMR for the city by 17% from 2022, but it fell short of the rising costs of rent over the last three years.
The GRHC's study found that the FMRs set by the HUD fell short of actual rental prices in the area, which made it difficult for people to compete in the rental market.
"With this increase by HUD, we were only one of five communities across the country to be able to receive these increases. And so with this additional increase it's an additional nine percent. So we're in a really good place as far as being competitive," Reames added.
Reames says that the GRHC is not currently accepting new applicants to its Housing Choice Voucher program, but they anticipate opening the waiting list to new applicants towards the end of the year.
The GRHC is also providing landlords who participate in the Housing Choice Voucher program with incentives to make more units available to residents.
Learn more about the GRHC's Section 8 Housing Voucher Program here.
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