HUD Predicts Some Rents increased by as much as 25% in Raleigh – Cary MSA 2013
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.
Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183