Some residents in Elizabethton public housing will enjoy lower rental rates in 2016, following a year when rates increased.
“HUD (Department of Housing and Urban Development) publishes the fair market rent, and it was raised in 2015. Then we based 2016 rent rates on that, but we got new numbers, and it has gone down, which is really helpful for our residents,” said Kelly Geagley, Executive Director of the Elizabethton Housing and Development Agency.
Residents have the decision to pay based on the fair market rent or based on their incomes. Most residents pay based on their income because that is more affordable, said Geagley, and their rental rates will not change. But 12 of the 13 that pay based on the fair market rent will see a decrease.
For apartments from zero to five bedrooms, the average decrease in monthly rent was $115, though it is greater for three or more bedroom apartments.
Residents that pay according to market rate are required by HUD standards to pay 80 percent or more of the fair market value.
Those affected will be reimbursed retroactively since January 1, 2016.