More than one-third of households across the nation live in rental housing. Some households have chosen rental housing due to convenience or cost. Others, particularly lower-income families, live in rental housing because homeownership is out of reach. Affordable rental housing for this population is very important not only for the families themselves but for our communities as a whole.
At least since the early 1980s, federal housing authorities have suggested that 30% of a household's income is the threshold under which housing is considered affordable. This standard says that non-housing needs, such as costs for basic necessities and other non-housing monthly bills (food, transportation, childcare, etc.) should be met with 70% of a household's annual income. The larger housing expenses are, the more difficulty families have paying for basic necessities and saving for the future.
Fair Market Rent is a U.S. Department of Housing & Urban Development (HUD) term that describes gross rent estimates for privately-owned, decent, and safe rental housing, or in other words, an estimate of what a family can expect to pay for modest rental housing. It includes the rent plus the cost of all tenant-paid utilities, with the exception of telephones, television, and internet services. According to HUD, Fair Market Rents must be high enough to allow for a selection of both units and neighborhoods, and low enough to serve as many low-income families as possible. Fair Market Rent amounts are used by HUD in the administration of both their certificate and voucher programs.
The calculation of Fair Market Rent is made annually for all metropolitan statistical areas and is somewhat complicated. To learn more about how Fair Market Rent is calculated by HUD, click here and see "Fair Market Rents: Overview".
This indicator measures the annual income required to afford fair market rent (FMR) in Walla Walla County for one and two-bedroom rental units. Benton and Yakima counties are offered as benchmarks. Additional information, including annual fair market rent, can be found in the “Download Data” section.
