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Figure 5: Average Asking Rent for Single Family Homes by County, 2003-2011 <br /> $3,000 <br /> $2,500 <br /> $2,000 <br /> $1,500 <br /> —Honolulu <br /> $1,000 —Hawaii <br /> —Maui <br /> $500 —Kauai <br /> —State <br /> $0 <br /> 2003 2004 2005 2006 2007 2007 2009 2010 2011 <br /> Source: Hawaii Information Service, data through June 30, 2011 <br /> FAIR MARKET RENTS <br /> In an effort to clarify the recent data that points to the beginning of an upward trend for monthly <br /> rental rates across the State of Hawaii, the 2011 HHPS Rental Housing Study has incorporated <br /> Fair Market Rent data provided by the U.S. Department of Housing and Urban Development <br /> (HUD). <br /> Fair Market Rents (FMRs) are gross rent estimates that include the shelter rent plus the cost of <br /> all tenant-paid utilities, except telephones, cable or satellite television service, and internet <br /> service. HUD sets FMRs to assure that a sufficient supply of rental housing is available to <br /> program participants. To accomplish this objective, FMRs must be both high enough to permit a <br /> selection of units and neighborhoods and low enough to serve as many low-income families as <br /> possible. HUD uses data from the Decennial Census, American Community Surveys, American <br /> Housing Surveys, and random-digit dialing telephone surveys to determine fair market rents. <br /> Fair market rents are expected to be higher than contract rents (because they are a type of <br /> asking rent and are calculated based on a sample of recent movers in two bedroom units <br /> deemed to be of standard quality) and lower than asking rents because they are intended to <br /> serve the needs of people with lower incomes. <br /> While the FMR is calculated for a very specific unit type, the general trend of FMR rates is <br /> indicative of the state of the rental housing market as a whole. Increases in FMRs are typically <br /> a reflection of price increases throughout the rental housing market (see Figures 6 through 9 <br /> below). <br /> In Hawaii, FMR have been rising at a relatively steady pace since the beginning of the housing <br /> market run-up in 2003. This is true for all counties, as well as for all unit types and sizes. <br /> Hawaii Housing Planning Study,2011: Rental Housing Page 8 <br /> 0 SMS, Inc. October,2011 <br />