Federal housing vouchers fail to keep up with rising rents: report

In Miami, less than 4% of two-bedroom units are listed below the fair market rent set by HUD

Miami /
Oct.October 16, 2017 09:45 AM

Low-income renters who depend on vouchers are feeling the strain of rising rents, especially in Miami-Dade County.

A new study from Zillow shows that federal housing vouchers are too low for most of South Florida and at least half of the nation’s largest counties.

The U.S. Department of Housing and Urban Development’s voucher program is meant to provide renters with enough funding to afford 40 percent of the listings in their market.
Miami is one of the most unaffordable markets for renters in the U.S. Since 2012, apartment rents in South Florida rose between 12 percent and 23 percent, according to Zillow.

In Miami, less than 4 percent of two-bedroom units are listed below the fair market rent set by HUD. In Broward, it’s about 20 percent and in Palm Beach, nearly 30 percent of two-bedrooms are listed below the fair market rent, according to the study.

If HUD’s voucher program continues to fall behind market rents, it could have big implications for affordability in the U.S.’s top markets. A 5 percent increase in rent in New York City, for example, would lead to about 3,000 more homeless people, Zillow found. In Los Angeles, the homeless population would grow by 2,000 people.

A report released earlier this year found that rents rose annually in Miami, Fort Lauderdale and West Palm Beach in June. In Miami-Dade, rents were up 8.8 percent in the second quarter, year-over-year, to nearly $1,450 a month. In Palm Beach County, rents increased 3.5 percent to just over $1,500. And in Broward’s major cities, rents budged by only 0.6 percent to $1,474.


Related Articles

arrow_forward_ios
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
 Adam Neumann (Getty, Bal Harbour Florida)
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
Miami penthouse sets cryptocurrency sale record: $22.5M
Miami penthouse sets cryptocurrency sale record: $22.5M
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
Steven and Beth Millner with One Thousand Ocean (Patrick McMullan/Getty, Google Maps)
Private equity honcho pays $5M for Boca Raton condo
Private equity honcho pays $5M for Boca Raton condo
From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)
South Florida’s pandemic-fueled residential market poised for bull run in 2021
South Florida’s pandemic-fueled residential market poised for bull run in 2021
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...