HUD’s housing choice voucher program is racially segregated in most areas of the country. Nationwide, the 2 million plus vouchers are located in census tracts that are on average 56% minority. HUD, Picture of Subsidized Housing, US Total, 2015 based on 2010 Census.¹ HUD has made available the data and the maps showing the racial segregation of vouchers into concentrated minority areas with extremely high poverty to every CDBG grantee in the country.² HUD’s current Fair Market Rent setting process has been a causal factor creating, maintaining, and perpetuating this racial segregation. The GAO has been pointing out this effect for decades.³
Do you want to know whether the HUD Fair Market Rents (FMR) perpetuate racial segregation in your urban area? If HUD adopts the Zip Code based Small Area Fair Market Rents (SAFMRs) for your urban area, do you want to know if those SAFMRs are high enough to make a substantial number of units available in majority White non-Hispanic areas? There are two guides in this section to help answer these questions.
Do the HUD Fair Market Rents perpetuate racial segregation in an urban area?
The first guide shows how to determine whether the existing HUD FMR Area FMR perpetuates racial segregation by making a higher percentage of units available by gross rent in minority areas than in majority White non-Hispanic areas. In the example used, the Cleveland-Elyria, Ohio MSA, the 2017 FMR makes the following percentages of units available by race of Zip Codes.
To evaluate your area download the following documents that will guide you through the process of determining the percentages of units available by your existing HUD FMR Area Fair Market Rent:
Worksheet Guide 1: Calculating percent units available by ZCTA formula document.xls
One useful comparison for the voucher racial distribution is to the percentage of renter occupied units available by gross rent in minority and in majority White non-Hispanic areas.
Do the adopted SAFMRs make adequate percentages of units available in non-minority Zip Codes?
The second guide applies to the SAFMRs for an area and shows how to determine what percentage of units are being made available in each Zip Code by the Zip Code SAFMR. The Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area SAFMRs are used in this example. Download the following documents that will guide you through the process of determining the percent of units available by SAFMR:
Worksheet Guide 2: 40th percentile rent calculations formula document.xls
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²Maps and data at https://egis.hud.gov/affht/; data at https://www.hudexchange.info/resource/4868/affh-raw-data/.
³Comptroller General, “Major Changes Are Needed in the New Leased Housing Program, 1977, CED-77-19, pages 3, 43; GAO, “Deconcentration of Low-Income Persons Through Section 8 Housing Assistance,” 1978, pages “document resume”,1, Enclosure I, page 2