NEW ULM – Payment standards for section 8 vouchers and flat rents for public housing in New Ulm will increase following newly issued Fair Market Rent from The Department of Housing and Urban Development (HUD).

New Ulm’s Economic Development Authority approved updated payment standards for it’s Section 8 Housing vouchers and public housing flat rents. Every year year, the EDA reviews the two program after HUD issues new Fair Market Rents (FRMs).

The new FMRs set by the federal government for Brown County are $671 for an efficiency apartment; $742 for a one-bedroom apartment; $973 for a two-bedroom; $1,177 for a three-bedroom and $1,609 for a four-bedroom. This is a slight increase over last year’s FMRs.

New Ulm Housing Coordinator Heather Bregel said HUD allows housing authorities to set the payment standards for section 8 vouchers within 90% to 110% of the established FMRs.

Bregel recommended the EDA set the standard for New Ulm’s voucher program above the federal FMRs, citing increasing rental rates.

“We have a low vacancy rate,” she said. “It is a landlord market and they are able to continue increasing the rents.”

For this reason Bregel recommended setting all voucher payment standards at 100% or higher. Vouchers would be set at $671 (100%) for efficiency apartments; $816 (110%) for a one-bedroom apartment; $1,070 (110%) for a two-bedroom; $1,212 (103%) for a three-bedroom and $1,657 (103%) for a four-bedroom.

The efficiency apartments were left at 100% because New Ulm had few of these apartment types.

Bregel said the goal of the Section 8 program was to have tenants pay 30% or their income toward rental and utility costs

“That’s is the way the program is intended to work,” she said. “We feel these payment standards should be adequate for vouchers holders to find suitable housing.”

EDA board member David Christian made the motion to approve the payment standard for section 8 vouchers. It was unanimously approved.

The new payment standards will take effect Dec. 1, 2025.

Later in the meeting the board approved the flat rents for New Ulm’s public housing program. As with the Section 8 program, when the FMRs are released by the federal government, New Ulm housing authority reviews the flat rents for its public housing program. The New Ulm EDA manages Broadway Haus Apartments and 10 rental homes as part of its public housing program.

The FMRs for flat rent was the same for the Section 8 voucher program with $742 for a one-bedroom apartment; $973 for a two-bedroom; $1,177 for a three-bedroom and $1,609 for a four-bedroom.

Bregel said typically, the EDA sets its flat rent rates at the FMR price without an adjustment. She explained that if a person in public housing sees an increase in their income and goes over the income limit for the program, their lease will not be terminated, but they are expected to pay market rate.

Bregel said this would set a ceiling for tenets to pay if they choose to stay in public housing.

By keeping the flat rent at market rate, New Ulm housing authority hopes to encourage tenants to look into purchasing a home or move to another market rate apartment and open a public housing unit for someone on their waiting list.

Lindsey Henn made the motion to approve the flat rents for public housing at the FMR. The motion was unanimously accepted.

The new flat rents for public housing retroactively go into effect for Oct. 1, 2025.

EDA board chairwoman Michelle Markgraf asked Bregel if she saw any impact to their program related to the government shutdown.

Bregel said they had funding for public housing through Nov. 4 and funding for Section 8 through mid November.

“We’re hoping this will be resolved before that funding runs out,” she said.