FEMA Asks Trailer Users to Start Paying Rent

FEMA's trailers have become a symbol of FEMA's potential disorganization. Many remember the photos of FEMA trailers standing unused in parking lots, while citizens are in need of homes. Last year's fermalgyheide incident, involving FEMA trailers, did not help reduce this stigma. FEMA's trailer program has once again been thrust into the spotlight.

After last year's flooding, many Iowans were left either with homes in disrepair, or without home altogether. Many of these citizens were provided with a FEMA trailer. FEMA's trailers gave these displaced Iowans a place to live. Especially for citizens who either did not have flood insurance, or whose insurance was not sufficient to repair their homes.

FEMA announced that Iowans, in FEMA trailers, would soon be asked to pay rent. TheHawkeye.com reported, "FEMA spokeswoman Crystal Payton says charging rent after a time is a standard practice that is deemed necessary to extend a program. Displaced residents faced a Nov. 27 deadline to be out of FEMA-provided housing. According to Payton, trailer users will be charged the fair-market rate set by the Department of Housing and Urban Development, which in the Cedar Rapids market is $649 for a two-bedroom unit." (FEMA trailer users to start paying rent, 2009)

Readers may find it hard to put the $649 rental charge into perspective. Factors such as average household income, health care costs, food costs, and/or utility costs figures into whether or not rental rates are affordable. To provide a little perspective, I compared my town in Missouri (Jefferson City) to Cedar Rapids, Iowa using PayScale.com. In Jefferson City, Missouri, a two bedroom, 1 and ½ bath town home may be rented for $575 a month. PayScale.com states that Cedar Rapids housing costs 3-4% higher than Jefferson City (Cost of Living in Cedar Rapids, Iowa by Expense Category, 2009). That would put a two bedrom town home between $592.25 to $598 per month. That would put FEMA's proposed rental rates of $649 higher than the average.

It is also important to consider how FEMA's $649/mo rent compares to the average Cedar Rapids household income. PayScale.com lists City-data.com lists the avergage household income, in Cedar Rapids, Iowa, at $43,704/year (Cedar Rapids, Iowa, 2009). FEMA is asking Iowans to pay $649/mo or $7,788/year. That equates to asking these citizens to pay approximately 22% of their income (after taxes) for rent. By Dave Ramsey's standards this is a little high but not unreasonable. The real question is, while the rent may not be unreasonable, are FEMA's trailers worth it?

References
FEMA trailer users to start paying rent. October 2009. TheHawkeye.com. Retrieved on October 28, 2009 from http://www.thehawkeye.com/story/k0134-BC-IA-FEMATrailers-10-27-0244
Cost of Living in Cedar Rapids, Iowa by Expense Category. October 2009. PayScale.com. Retrieved on October 28, 2009 from http://www.payscale.com/cost-of-living-calculator/Iowa-Cedar-Rapids/Missouri-Jefferson-City
Cedar Rapids, Iowa. October 2009. City-Data.com. Retrieved on October 28, 2009 from http://www.city-data.com/city/Cedar-Rapids-Iowa.html