Small area fair market rent

(a) Use of small area fair market rent Section 8(o)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended by adding at the end the following: (F) Small area fair market rent (i) Definitions In this subparagraph— (I) the term metropolitan area means a metropolitan statistical area, as defined by the Office of Management and Budget; and (II) the term small area fair market rent means the fair market rent established for a ZIP Code area within a metropolitan area. (ii) Use of small area fair market rent Notwithstanding subsection (c) or any other provision of this subsection, not later than 3 years after the date of enactment of this subparagraph, the Secretary shall designate a number of metropolitan areas in which public housing agencies are required to use the small area fair market rent to determine the fair market rental for dwelling units for purposes of tenant-based assistance under this subsection that is not less than 3 times the number of metropolitan areas so designated in the final rule of the Secretary entitled Establishing a More Effective Fair Market Rent System; Using Small Area Fair Market Rents in the Housing Choice Voucher Program Instead of the Current 50th Percentile FMRs, published in the Federal Register on November 16, 2016 (81 Fed. Reg. 80567). (iii) Hold harmless If the application of clause (ii) would cause a decrease in the payment standard used to calculate the amount of tenant-based assistance provided to a family under this subsection, a public housing agency shall continue to use the existing higher payment standard to calculate the amount of such assistance for the family for as long as the family continues to receive such assistance in the same dwelling unit.. (b) Conforming amendment Section 8(o)(1)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended by inserting after subsection (c) the following: (subject to subparagraph (F) of this paragraph).