More than one-third of households across the nation live in rental housing. Some households have chosen rental housing due to convenience, cost, or other reasons. Other households, 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 US 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 somewhat complicated and varies by metro area across the country. To learn more about how Fair Market Rent is calculated by HUD, please follow this link and click on "Fair Market Rents: Overview." Note: HUD methodology can change from year to year.
This indicator measures the fair market rent for one-bedroom and two-bedroom living spaces in Walla Walla County. Benton and Yakima counties are offered as benchmarks. Additional information, including data for three-bedroom and four-bedroom living spaces for each of the offered jurisdictions can found in the "Download Data" section.
