HUD Predicts Some Rents increased by as much as 25% in Raleigh – Cary MSA 2013

English: Downtown Raleigh, North Carolina, 12 ...

English: Downtown Raleigh, North Carolina, 12 October 2008. (Photo credit: Wikipedia)

HUD has just published the 2013 Area Median Income limits and the 2013 Fair Market Rents for use in Raleigh – Cary MSA. You may be asking yourself “why should I care about HUD Median Income Limits”?  If your plans to move to Raleigh or Cary include buying, selling or simply renting a home (and by “home” I also mean an apartment) in the Raleigh – Cary Metropolitan Statistical Areas (MSA) this should be very important to you. That is why I’m filing this post under the category of “SAQ” or what I like to call “Should Ask Questions”.

        Family Size      
Required use date 1/14/13 1 2 3 4 5 6 7 8
Percent of Area Median Income                
10% $5,320 $6,080 $6,840 $7,600 $8,210 $8,820 $9,430 $10,040 est.
20% $10,640 $12,160 $13,680 $15,200 $16,420 $17,640 $18,860 $20,080 est.
Extremely Low – 30% $16,000 $18,250 $20,550 $22,800 $24,650 $26,450 $28,300 $30,100 HUD
40% $21,280 $24,320 $27,360 $30,400 $32,840 $35,280 $37,720 $40,160 est.
Low – 50% $26,600 $30,400 $34,200 $38,000 $41,050 $44,100 $47,150 $50,200 HUD
60% $31,920 $36,480 $41,040 $45,600 $49,260 $52,920 $56,580 $60,240 HUD
65% $34,580 $39,520 $44,460 $49,400 $53,365 $57,330 $61,295 $65,260 est.
70% $37,240 $42,560 $47,880 $53,200 $57,470 $61,740 $66,010 $70,280 est.
Moderate – 80% $42,600 $48,650 $54,750 $60,800 $65,700 $70,550 $75,400 $80,300 HUD
90% $47,880 $54,720 $61,560 $68,400 $73,890 $79,380 $84,870 $90,360 est.
100% $53,200 $60,800 $68,400 $76,000 $82,100 $88,200 $94,300 $100,400 est.- median

In addition to publishing Income limits, HUD also publishes what they deem to be affordable rents of a Metropolitan Statistical Area. As you can see from the chart below, HUD Estimates the Fair Market Rents in the Raleigh Cary MSA will remain stable across the smaller homes, rise only slightly in some areas, and decline slightly in others. However, what stands in stark contrast is four bedroom home fair market rents are projected to increase be nearly 25% in 2013 in Raleigh – Cary!

Raleigh – Cary Affordable Rents – Year 2012 – Official Data

Number of Bedrooms Efficiency-0

1

2

3

4

5

6

2012 LOW HOME RENT LIMIT

$695

$750

$867

$1,038

$1,129

$1,278

$1,398

2012HIGH HOME RENT LIMIT

$695

$779

$867

$1,090

$1,129

$1,298

$1,468

2013 FAIR MARKET RENT

$634

$741

$878

$1,137

$1,412

50 % Maximum Housing Expense

$700

$750

$900

$1,038

$1,158

$1,278

$1,398

65 % Maximum Housing Expense

$890

$955

$1,148

$1,317

$1,450

$1,581

$1,712

2011 CITY UTILITY ALLOWANCES must be determined for each individual apartment or identical apartments in a project
Note: High Home Rent Limits held at 2011 levels

Simply put, if you’re planning a move to the Raleigh – Cary MSA of the Triangle area of North Carolina in 2013 and your housing needs are such that you require a four bedroom home, renting may not be your most economical option today.

Mortgage rates remain at historical lows while the median home price in Raleigh-Cary of $219,000 has declined in recent years. In consideration of the data released by HUD, and the afore mentioned market conditions, at least for the time being, owning a home might be your most economical option.