Landlord Newsletters

HASCO Landlord Newsletter

Beginning January 1, 2025, HASCO will use a new method to calculate the amount of money we pay towards rent and utilities for each family in our Housing Choice Voucher program. This new approach is required by the U.S. Department of Housing and Urban Development (HUD).

Under the new approach, HASCO will no longer use Fair Market Rents (FMRs) for the entire metropolitan area to determine the payment standard that reflects the maximum amount of assistance we will pay toward rent and utilities. Effective January 1, 2025, HASCO will switch to FMRs established at the ZIP code level, which are known as
Small Area Fair Market Rents (SAFMRs). The use of multiple payment standards will allow us to provide rental assistance at levels that more accurately reflect the rents charged in individual neighborhoods.

You are receiving this notice because the payment standard in the ZIP code(s) where you own property and rent to families in the HCV program will change. Please refer to the enclosed chart to see the new payment standard effective as of January 1, 2025.

UNITS LEASED BEFORE JANUARY 1, 2025:
If payment standards are reduced in ZIP codes where you own properties, the Housing Assistance Payment (HAP) you receive from HASCO will not be affected by this change. HASCO will hold them at the 2024 payment standard until one of the following happens:

• They move to a new unit
• They change their family composition such that their voucher size changes

If payment standards are increased in ZIP codes where you own properties, the portion of the rent for which the tenant is responsible may be reduced at their next annual reexamination if they are paying more than 30 percent of their income for rent and utilities. Please be aware that all HAP contracts will remain subject to rent reasonableness determinations.

UNITS LEASED ON OR AFTER JANUARY 1, 2025:
The new payment standards will be immediately effective for any new HAP contracts that become effective on or after January 1, 2025. The revised SAFMRs and payment standards will be used to calculate HAP amounts for these households.

If you have questions about what this change means for you or would like additional information, please visit the landlord section of www.hasco.org.

As of January 1, 2025, HASCO uses Small Area Fair Market Rents(SAFMRs) to determine the payment standards for the Housing Choice Voucher (HCV) program. Visit HASCO.org or contact us at landlord@hasco.org or 425-290-8499 for additional information.

What are SAFMRs?
SAFMR stands for “Small Area Fair Market Rent.” SAFMRs are typical rent levels (including the cost of utilities, except telephone) for each unit size in every ZIP code. SAFMRs are set by the U.S. Department of Housing and Urban Development (HUD) each year.

What are payment standards?
Payment standards are used to calculate the maximum subsidy HASCO will pay toward rent and utilities for units leased to families with HCVs. Under the HCV program, families are generally required to pay 30 percent of their adjusted income toward rent and utilities. HASCO then pays the difference between the family’s required contribution and the lower of (a) the payment standard and (b) the gross rent (contract rent plus a utility allowance) of the unit. HCV families may choose to pay more to live in a unit where the rent and utilities exceed the payment standard but may not pay more than 40 percent of their adjusted income for rent and utilities when initially signing a lease.

Effective January 1, 2025, HASCO will set payment standards for each ZIP code in its jurisdiction. The payment standard will be set as a percent of the SAFMRs in each ZIP code. Owners and tenants can view the payment standards at www.HASCO.org.

What’s new about this approach?
Before January 1, 2025, HASCO based payment standards on the FMRs calculated for the entire metropolitan area. This meant that payment standards may have been too low to enable HCV families to rent units in higher-cost areas and may have been higher than market rents in lower-cost areas. Under the new approach, the payment standards are based on the FMR for each ZIP code. If your property is located in a high-cost neighborhood, the portion of rent HASCO pays on behalf of the tenant will likely increase. At the same time, the payment standards in many low-cost areas will likely be reduced, meaning tenants may be responsible for a greater share of rent and utility payments when they lease in that zip code, depending on the amount of the rent.

How will I be impacted?
Impact depends on the location of your properties. The change in payment standards means that families with vouchers may now be able to afford units in high-cost areas. Increased payment standards for families currently leased with a voucher will be
effective at their first annual reexamination after January 1, 2025. You will continue to receive a Notice of Initial Rent or Rent Change whenever HASCO and family rent portions change.

NOTE: In areas where the payment standards decrease, HASCO will continue to use the higher 2024 payment standard for families currently leased with a voucher until they have a change in family composition that changes the value of their voucher (someone moves into or out of the household). SAFMRs in these areas will apply to new rental leases on January 1, 2025.

What else do I need to know?
All Housing Assistance Payment contracts will remain subject to rent reasonableness.
Payment Standard by ZIP Code

ZIP Code	Efficiency	One-Bedroom	Two-Bedroom	Three-Bedroom	Four-Bedroom
98012	$2,330	$2,390	2,780.00	$3,660	$4,270
98020	$2,180	$2,230	2,600.00	$3,430	$4,000
98021	$2,690	$2,760	3,210.00	$4,230	$4,930
98026	$2,020	$2,070	2,410.00	$3,180	$3,700
98036	$1,990	$2,050	2,390.00	$3,160	$3,680
98037	$2,090	$2,140	2,490.00	$3,280	$3,830
98043	$2,130	$2,180	2,540.00	$3,350	$3,900
98046	$2,070	$2,120	2,470.00	$3,260	$3,800
98072	$2,540	$2,600	3,030.00	$3,990	$4,660
98077	$2,710	$2,770	3,230.00	$4,260	$4,960
98082	$2,070	$2,120	2,470.00	$3,260	$3,800
98087	$2,180	$2,230	2,600.00	$3,430	$4,000
98201	$1,990	$2,050	2,390.00	$3,160	$3,680
98203	$1,990	$2,050	2,390.00	$3,160	$3,680
98204	$1,990	$2,050	2,390.00	$3,160	$3,680
98205	$2,070	$2,120	2,470.00	$3,260	$3,800
98206	$2,070	$2,120	2,470.00	$3,260	$3,800
98207	$1,990	$2,050	2,390.00	$3,160	$3,680
98208	$2,020	$2,070	2,410.00	$3,180	$3,700
98213	$2,070	$2,120	2,470.00	$3,260	$3,800
98223	$1,990	$2,050	2,390.00	$3,160	$3,680
98241	$1,990	$2,050	2,390.00	$3,160	$3,680
98251	$1,990	$2,050	2,390.00	$3,160	$3,680
98252	$1,990	$2,050	2,390.00	$3,160	$3,680
98256	$1,990	$2,050	2,390.00	$3,160	$3,680
98258	$2,280	$2,340	2,720.00	$3,590	$4,180
98259	$2,070	$2,120	2,470.00	$3,260	$3,800
98270	$1,990	$2,050	2,390.00	$3,160	$3,680
98271	$2,050	$2,100	2,450.00	$3,230	$3,760
98272	$2,130	$2,180	2,540.00	$3,350	$3,900
98275	$2,310	$2,370	2,760.00	$3,640	$4,240
98282	$1,990	$2,050	2,390.00	$3,160	$3,680
98287	$2,070	$2,120	2,470.00	$3,260	$3,800
98290	$1,990	$2,050	2,390.00	$3,160	$3,680
98291	$2,070	$2,120	2,470.00	$3,260	$3,800
98292	$1,990	$2,050	2,390.00	$3,160	$3,680
98293	$2,070	$2,120	2,470.00	$3,260	$3,800
98294	$1,990	$2,050	2,390.00	$3,160	$3,680
98296	$2,610	$2,670	3,110.00	$4,100	$4,780

 

Payment standards are used to calculate the maximum subsidy that the PHA will pay each month toward rent and utilities for families with Housing Choice Vouchers. Payment standards vary by ZIP code and unit size.