The City of Phoenix now has more Housing Choice Vouchers (HCVs) to help low-income renters have access to safe, decent, affordable housing. The U.S. Department of Housing and Urban Development (HUD) awarded 92 new HCVs to the city’s Housing Department, marking the first non-competitive, general-purpose voucher increase in more than 10 years. The Housing Department’s voucher allocation increased to 7,204, effective October 1, with this new award.
Additionally, the money tied to HCVs will now go much further for voucher recipients in Phoenix with the newly released Fiscal Year (FY) 2023 Fair Market Rents (FMR) from HUD. Annual FMRs refer to the amount of money needed to cover rent and utilities on 40% of rental housing in a given area. While most of the country’s FMRs increase by about 10% on Oct. 1, Phoenix has seen so much rent growth recently that FMRs went up by more than 30%.*
These numbers are important because the Phoenix Housing Department uses them to determine Payment Standards -- how much money can be paid on behalf of a voucher recipient. Effective Oct. 1, Phoenix set the Payment Standards for the program at 110% of the FY2023 FMRs. The increase to FMRs elevates the value of vouchers, giving more opportunities for voucher holders to find rental housing in the private market.
*Table 1. Fair Market Rents (FMR) Year-to-Year % Increases for Phoenix, AZ
|
1-Bedroom
|
2-Bedroom
|
3-Bedroom
|
4-Bedroom
|
2018 to 2019
|
7%
|
6%
|
5%
|
5%
|
2019 to 2020
|
10%
|
9%
|
8%
|
8%
|
2020 to 2021
|
8%
|
7%
|
5%
|
5%
|
2021 to 2022
|
6%
|
5%
|
3%
|
3%
|
2022 to 2023
|
34%
|
33%
|
31%
|
31%
|
