HUD HCV Guidebook § 2.8
Suspension of SAFMR Designation or Temporary Exemption (HUD HCV Guidebook)
Operative Text
In rare cases, HUD may suspend an SAFMR designation from a metropolitan area or may temporarily exempt
a PHA in a designated SAFMR area from the use of SAFMRs, when HUD makes a documented determination,
through public notice, that such action is warranted.30 The process for reviewing whether a suspension or
temporary exemption is warranted may be initiated by HUD or at the request of a PHA. The PHA’s request for
suspension or exemption must be emailed to SAFMRs@hud.gov.
A PHA may request either:
• Suspension of the SAFMR designation for a metropolitan area.
o Only PHAs, or a combination of PHAs, that administer more than 50 percent of the
vouchers leased in the metropolitan area may make this request.
• Temporary exemption from the use of SAFMRs for an individual PHA.
In both cases, the request must be based on a documented finding of an adverse rental housing market
condition specific to the area or PHA. Adverse rental housing market conditions may include, but are not
limited to:
• Current vacancy rates falling below four percent (insufficient supply);
• A sudden and significant influx of families into the metropolitan area (demand shock);
• A sudden and significant loss of rental units (supply shock);
• A rapid increase in the PHA’s per unit costs (PUC) causing the PHA to experience a funding
shortfall (supply or demand shocks).
Adverse rental housing market conditions may apply to the broad rental housing market or may apply to the
part of the rental market that is affordable and available to HCV families. For example, declining success
rates and increasing rent burdens, despite PHA owner outreach efforts, may be evidence of adverse rental
market conditions for HCV families due to lack of units that are both affordable and owned by owners willing
29
85 FR 53444 (August 28, 2020) and as further edited by 90 FR 13189 (March 20, 2025)
30
24 CFR 888.113(c)(4)
to participate in the HCV program. There may be other circumstances that could cause adverse rental market
conditions, and HUD will review the submitted documentation of these conditions on a case-by-case basis.
If HUD determines it is necessary to suspend an area’s SAFMR designation or temporarily exempt an
individual PHA from use of the SAFMRs, HUD will issue a Notice of Suspension or Exemption with information
on the adverse rental market condition that is the reason for the suspension, the duration and timing of the
suspension, and any other details as HUD determines necessary.Under HUD Housing Choice Voucher Guidebook § 2.8, HUD has the authority to suspend the Small Area Fair Market Rent (SAFMR) designation for an entire metropolitan area or to temporarily exempt a specific Public Housing Authority (PHA) from using SAFMRs when documented adverse rental housing market conditions warrant such action. These conditions can include low vacancy rates, sudden population influxes, significant loss of rental units, or rapid increases in per-unit costs. Any suspension or exemption is formalized through a public notice and a HUD-issued Notice of Suspension or Exemption that specifies the reason, duration, and relevant details.
Plain English — not legal advice.
Property owners and managers operating in SAFMR-designated areas should be aware that under § 2.8, the payment standards governing Housing Choice Vouchers in their market could shift if HUD suspends or exempts a PHA from SAFMR requirements. Compliant operators generally stay informed about HUD public notices that announce any such changes, since a suspension or exemption would affect the rent levels at which voucher-assisted units are subsidized. Monitoring communications from the local PHA and HUD's public notice channels helps operators anticipate any adjustments to applicable Fair Market Rents.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants using Housing Choice Vouchers, § 2.8 establishes that the rent subsidy calculations in your area could change if HUD suspends SAFMR designations or grants a PHA a temporary exemption, which may affect the range of units accessible under your voucher. If you notice changes to your payment standard or hear that your PHA has sought a suspension or exemption, contacting your PHA directly for clarification is a common first step. Tenant-rights organizations familiar with HCV program rules can also help explain how any such changes might affect voucher holders in your area.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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