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54 <br /> Is there sufficient housing for households at all income levels? <br /> The data indicate that there are not sufficient housing units for extremely low-income (earning below <br /> 30%AMI) and very low-income (earning below 50%AMI) households.As discussed earlier in this report, <br /> a disproportionate number of these households are cost-burdened. Furthermore, only 5%of rental units <br /> in Orange County are affordable to households earning below 30%AMI. <br /> How is affordability of housing likely to change considering changes to home values and/or <br /> rents? <br /> Housing prices in recent years have increased at a faster rate than incomes, which compounds housing <br /> affordability problems. We expect this trend to continue in the next five years, resulting in a smaller <br /> number of housing units affordable to people who work in Orange County.As a result, we may see more <br /> individuals locating to surrounding, rural counties (Alamance and Chatham Counties) where housing is <br /> more affordable. <br /> How do HOME rents/ Fair Market Rent compare to Area Median Rent? How might this <br /> impact your strategy to produce or preserve affordable housing? <br /> The most recent Fair Market Rents (FMR)for Orange County are$834 for efficiencies, $902 for one- <br /> bedroom units, $1,055 for two-bedroom units, $1,435 for three-bedroom units, and $1,624 for four- <br /> bedroom units.These FMRs are for the Durham-Chapel Hill MSA. High HOME rents are roughly similar to <br /> FMRs while low HOME rents are considerably lower than FMRs. <br /> According to the most recent American Community Survey(ACS) estimates, median gross rents for <br /> Orange County are$972 for efficiencies, $929 for one-bedroom units, $1,051 for two-bedroom units, <br /> $1,257 for three-bedroom units, and $1,789 for four-bedroom units. Gross rent amounts include <br /> utilities; contract rents are not available from the ACS by bedroom size. <br /> Thus, it appears that FMRs and HOME rents are lower than median rents for efficiencies (even assuming <br /> utility costs), roughly the amount for one-and two-bedroom units, more than typical rents for three- <br /> bedroom units, and roughly the same as four-bedroom units. <br /> Discussion <br /> One problem the county has faced,though, is that even when FMRs are competitive at market rates, <br /> many landlords refuse to accept Housing Choice Vouchers due to the perceived bureaucratic headaches <br /> associated with participating in the program.Thus, even having FMRs be competitive with market rents <br /> may not be enough. <br /> IFFY 2020—2024 Orange County, NC HOME Consortium 51 <br /> Consolidated Plan <br /> OMB Control No:2506-0117(exp.06/30/2018) <br />