Moving Expense Payments: Actual Costs or the Fixed Schedule

Displaced persons under the URA are entitled to payment for moving expenses. For residential moves, the regulations give the household a choice between two methods. Explaining that choice clearly, early, and in writing prevents most disputes over moving costs.

Option 1: Actual reasonable moving costs

Under 49 CFR 24.301, a displaced person may be paid for actual, reasonable and necessary moving expenses, supported by documentation. Eligible items generally include:

• transportation of the household and personal property, typically within 50 miles;
• packing, crating, unpacking and uncrating;
• disconnecting, dismantling, reassembling and reinstalling household appliances and other property;
• storage of personal property when needed, for a reasonable period;
• insurance for replacement value of property in connection with the move and storage;
• certain other related costs listed in the regulations.

This option often works best when a professional mover is hired, and many agencies pay the mover directly.

Option 2: Fixed residential moving cost payment

Under 49 CFR 24.302, a household may instead choose a fixed payment based on the Federal Highway Administration's residential moving expense schedule. The amount generally depends on the number of rooms of furniture and the state. No receipts are required. Self-movers often prefer this option.

The FHWA schedule is updated periodically, so always use the current version for your state when calculating the payment.

Helping residents choose

• Present both options side by side, in writing, with estimated amounts.
• For elderly residents or residents with disabilities, a full-service professional move under the actual-cost option is often the better fit, and may also be a reasonable accommodation.
• Explain documentation requirements for the actual-cost option before the move, not after.
• Record the election in the household file.

Remember the rest

Moving payments are separate from replacement housing payments and from temporary relocation costs. Track each type separately in the resident log and the relocation budget.