HUD HCV Guidebook § 2.1.3

A rent reasonableness determination is required when there is a ten percent decrease in the published FMR
(for the unit size rented by the family) in effect 60 days before the contract anniversary date as compared with
the FMR in effect one year before the contract anniversary date. An FMR will never decrease by more than 10
percent from the previous year’s FMR. This provision is designed to ensure that when the market goes down
by a significant amount, the PHA must5 reexamine rent reasonableness at the contract anniversary date, even
if the owner does not propose a rent increase. When determining if this provision applies, the PHA must
compare the FMR in effect 60 days prior to the upcoming HAP contract anniversary date with the FMR in
effect one year before the upcoming anniversary date.6