Housing Choice Vouchers

On September 10, HUD announced in an email to PHA executive directors that they would be extending the mandatory compliance date for the NSPIRE-V inspection protocol from October 1, 2025, to February 1, 2027. The email also states that a PIH notice including updated administrative requirements for this extension will be published soon.

Highlights from the email include:  

• The extension applies to changes in the definition of Housing Quality Standards (HQS) from the NSPIRE Final Rule and HOTMA Final Rule.  
• NSPIRE requirements for carbon monoxide and smoke alarms remain in place due to existing Congressional mandates. 
• Lead-based paint visual assessment standards remain unchanged. 
• Existing approvals for HQS variations and alternative inspection methods remain valid until NSPIRE is implemented, except for fuel-burning space heaters, which were prohibited as of January 1, 2024.  
• All variations and alternative methods must be re-reviewed by HUD before NSPIRE implementation or by February 1, 2027, whichever comes first. 

In April of this year, CLPHA and industry partners sent a letter to HUD asking for an extended compliance date for NSPIRE-V. We are appreciative that HUD has listened to this feedback and will continue to support our members in their successful implementation of the new inspection protocol.  

HUD has published the fiscal year (FY) 2026 fair market rents (FMRs) for the Housing Choice Voucher (HCV) program. The notice includes the methodology used to calculate FY26 FMRs as well as the process for PHAs to request reevaluations. The effective date for these FMRs is October 1, 2025. The notice also opens a 30-day comment period for interested parties to submit comments regarding FY26 FMRs and to request reevaluations. 

CLPHA encourages members who have observed substantial changes or suspect errors in their FMRs to submit requests for reevaluation to HUD. Member feedback will be critical in ensuring that FMRs accurately reflect local market realities and support effective voucher utilization. 

FMR Methodology Updates 

HUD's FY26 FMR methodology incorporates several important updates. The updated methodology uses the latest Census data and metropolitan definitions to refine geographic areas. FMRs continue to reflect the 40th percentile rent paid by recent movers in standard units, but HUD may now split metropolitan areas into smaller regions to better match local market conditions. Additionally, rent estimates include utility costs and trend forecasts. 

Small Area Fair Market Rent Changes 

Changes to small area fair market rent (SAFMR) requirements will impact multiple jurisdictions. HUD's updates to metropolitan statistical area definitions have expanded mandatory SAFMR use to eight additional towns in Connecticut and clarified continued SAFMR requirements for areas removed from existing metro boundaries. 

Importantly, although Calvert County, Maryland and four towns in Connecticut were removed from their respective metropolitan areas, PHAs in these locations must still apply SAFMRs. These changes will affect payment standard calculations and may influence voucher mobility, leasing strategies, and housing market engagement for impacted PHAs. Implementation is required by January 1, 2027. 

Looking Ahead to FY27 

The notice also outlines proposed changes to the calculation of FY27 FMRs and requests comments on the alternate utility inflation factor methodology HUD intends to use. 

Reevaluation Process 

PHAs seeking reevaluations of their FY26 FMRs must be submitted within the 30-day comment period through www.regulations.gov. Requestors must supply HUD with data more recent than the 2023 American Community Survey data used in calculating the FY26 FMRs by January 9, 2026. 

PHAs in areas where valid reevaluation requests are submitted have options: they may continue to use FY25 FMRs or may use the FY26 FMRs. PHAs should indicate their preference as part of their reevaluation request. 

CLPHA Response and Member Support 

CLPHA will be evaluating the impact of the FY26 FMR changes and submitting comments to HUD on the proposed updates. The rental market has experienced notable volatility, with rapid shifts in demand, inflationary pressures, and regional disparities affecting rent levels. 

While HUD's methodology now incorporates local trend factors and recent mover data to better reflect current conditions, these adjustments may still result in significant fluctuations or inaccuracies in FMRs. CLPHA encourages members who have observed substantial changes or suspect errors in their FMRs to submit requests for reevaluation to HUD. Member feedback will be critical in ensuring that FMRs accurately reflect local market realities and support effective voucher utilization. 

For concerns with proposed FMR changes or this notice, please email CLPHA’s Research and Policy Analyst Madeline Morris at [email protected]. If you plan to submit a reevaluation request, please let us know.