TO: The Honorable Board of County Commissioners
THROUGH: John Titkanich, Jr., County Administrator
Michael C. Zito, Deputy County Administrator
Susan Prado, Deputy County Attorney
Cynthia Emerson, Community Services Director
FROM: Stacey Bush, Housing Services Manager
DATE: September 23, 2025
SUBJECT: Approval of Resolution Establishing Payment Standards (Based on HUD’s Fair Market Rents) for Housing Choice Voucher Program for Fiscal Year 2026
__________________________________________________________________
BACKGROUND
Indian River County Code designates the Deputy County Attorney as the County’s Fair Housing Coordinator. Among the County’s housing programs is the Housing Choice Voucher (HCV) Program, formerly known as Section 8 Housing. Federal regulations require the Board to approve, by resolution, the Housing Choice Voucher Program payment standards each year, which are set in relation to HUD’s published Fair Market Rents (FMRs).
The HCV Program is a federally funded rental assistance program administered locally by the County’s Housing Services Division. While federal regulations establish program rules, local demographics influence administration. Indian River County has a significantly higher elderly/retiree population (approximately 33%) compared to the national average of 18%, which increases demand for affordable housing options for low-income elderly residents. The program also serves veterans, persons with disabilities, and other low-income households.
The County owns no housing under this program. Instead, private landlords make their units available, which must meet HUD’s Housing Quality Standards before being approved for tenancy. In exchange for participating, landlords benefit from reliable rent payments and potential tax advantages, while tenants obtain safe, decent, and affordable housing. Qualified tenants typically contribute between 30% and 40% of their income toward rent and utilities, with the balance paid directly to the landlord by the County. This program supports the County’s Comprehensive Plan objective of ensuring access to housing for very low- and extremely low-income residents, while also generating administrative fee revenue from HUD to support operations.
ANALYSIS
HUD annually publishes updated FMRs for each metropolitan and non-metropolitan area. These FMRs are intended to reflect the cost of modest rental housing and serve as the basis for establishing local payment standards, which are the maximum subsidy amounts the HCV Program will provide for specific unit sizes.
For Fiscal Year 2026, HUD released new FMRs for Indian River County that reflect changes in local rental market conditions, including increases in average rents and sustained demand for affordable housing. To maintain program effectiveness and ensure participant choice in securing housing, staff recommends adopting payment standards between 90% and 110% of the published FMRs, in accordance with HUD regulations.
By aligning payment standards with current market rates, the County can help ensure voucher holders are able to access a wider range of housing opportunities and avoid displacement due to rising rents. Failure to update payment standards could limit housing options, increase the rent burden for participating households, and reduce landlord participation in the program. The attached resolution formally establishes these payment standards for FY2026, effective October 1, 2025.
BUDGETARY IMPACT
There is no direct budgetary impact associated with the approval of the Payment Standards. All administrative functions and program activities are supported by existing HUD grant allocations and administrative fee revenue.
PREVIOUS BOARD ACTIONS
Approval of the FY2025 Payment Standards in September 2024.
POTENTIAL FUTURE BOARD ACTIONS
Annual review and approval of updated Payment Standards for FY2027.
STRATEGIC PLAN ALIGNMENT
Quality of Life.
OTHER PLAN ALIGNMENT
Indian River County Housing Choice Voucher Administrative Policy.
STAFF RECOMMENDATION
Recommended Action
Staff respectfully recommends the Board of County Commissioners approve the resolution setting the Payment Standards for Fiscal Year 2026 and authorize the Chairman to execute the resolution on behalf of the Board.