Fair Market Rent Calculations for Reduced Monthly MHU Rent

HUD’s The FEMA Mobile Housing Unit program for the August 2016 floods is extended to August 15, 2018. All eligible MHU occupants will pay $50 in rent for the month of June. Unless an eligible MHU occupant has been verified as a low income household, FEMA will charge incremental rent increases established by HUD in July. Beginning in July, MHU occupants will pay 50% of the Fair Market Rent. August rent will increase to 100% of the FMR.

For those seeking a reduced rent amount, FEMA will follow the applicant appeal process. FEMA will use HUD guidelines to determine if occupants living in an MHU may receive a reduced rent. That amount will be based on an MHU occupant’s financial ability to pay using HUD’s Income Limit table.

  • HUD uses many factors to determine the Fair Market Rent to calculate monthly rental amounts.
    • Factors include the household’s adjusted income, a percentage of the household’s total income, family size, and location of the MHU.
    • If a household currently occupying an MHU is determined to be low income, their rent may be reduced to minimum rent of $50 per month.
  • Based on the HUD Fiscal Year 2018 IL table, low income MHU occupants with a mortgage qualify for the FEMA minimum monthly rent of $50. HUD defines low income families as those with incomes not exceeding 80% of the median family income for the area.
  • Occupants must continue to make progress on their permanent housing plan to remain eligible for the housing program.
  • FEMA staff will continue to work directly with occupants to assist in the application process and solicit rent reduction information.
  • FEMA will use a streamlined process for the rent collection appeal process by allowing MHU occupants to submit self-certified pre-disaster documentation.
    • Pre-disaster income and housing costs information will be reviewed on a case-by-case basis.
  • Information can be submitted through the following methods:
  • FEMA will also charge the minimum $50 rent to occupants with low income verified by Restore Louisiana.
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