PALM COAST, Fla. – A notice taped to the door of a newly occupied unit informed Erica Robinson, a single mother of two, that her “affordable” apartment rate would be adjusted because the Area Median Gross Income (AMGI) published by the U.S. Department of Housing and Urban Development had risen.
Robinson was not alone. Several residents at The Palms at Town Center told News4JAX they were surprised to receive notices showing rent increases of several hundred dollars, despite having months remaining on their leases.
Robinson said the May 1 notice came about 60 days after she moved in. She told News4JAX the new monthly figure listed in the notice would raise her rent by roughly $400, including the extra fees she pays monthly. She understood her rent was increasing from about $1,419 to $1,785, which is a jump she said she could not afford.
“This apartment, it’s supposed to be considered affordable,” Robinson said. “I did the math. It’s a $366 increase with a 30-day notice.”
Since contacting the I-TEAM, Robinson learned her rent would not be changing, despite her resident portal reflecting a base rent of $1,725 for the month of June.
A message she received from the property management took accountability for what it called a systematic error.
“We would like to apologize for an error that occurred with your June rent amount.
Due to a system issue, a rent increase was inadvertently applied to your account. Because you moved into the community under a promotional rental rate, you will not be subject to this increase, and your rent amount will remain at the agreed-upon promotional rate," the message read.
In response to questions from News4JAX, a spokesperson for The Palms at Town Center said the notice reflected annual rent limits established under federal affordable housing programs.
The company said all residents received the notice because updated HUD limits apply property-wide. However, management said some residents who recently moved in or renewed leases at reduced rental rates mistakenly interpreted the notice to mean their rents would automatically increase to the maximum amounts listed.
Several residents told News4JAX they had not received clear answers about how the new rates would affect them and feared they would be responsible for hundreds of dollars in additional rent each month.
After residents contacted the News4JAX I-TEAM, management provided additional clarification, confirming that the June 1 rent adjustment will not apply to residents who signed new leases within the past five months, residents who recently renewed at lower rental rates or applicants who applied before the May 1 notice.
A spokesperson for The Palms at Town Center said management will honor the rental terms and rates previously communicated to those households.
The spokesperson said management had already begun reaching out to affected residents individually, but acknowledged that those conversations were still ongoing.
“While management has been in the process of reaching out to residents who recently signed or renewed leases to explain how the updated HUD schedule would apply to their situations, those conversations were still ongoing,” the spokesperson said. “We recognize that the delay in communication caused concern for some residents, and the team is working diligently with residents to address questions and provide clarity regarding their individual circumstances.”
The Palms at Town Center offers a combination of affordable and workforce housing, with rents based on household income. HUD.gov posted a significant increase in median family income between 2025 and 2026, from $92,800 to $114,500.
At the time we interviewed Robinson, she said she previously asked management to re-run her application or move her into a lower-cost unit but was told there were no available alternatives that would meet program rules and her household’s needs.
“It’s very frustrating because like I lived in apartments before there’s rent increases. But typically it’s like at the end of your lease,” Robinson said. "I don’t work. I went to school. I have a degree, I do medical billing coding from home, I have to pay for daycare, but it’s like what do you do when your hands are tied? Like have an eviction now if you can’t afford to live?"
News4JAX reviewed Robinson’s lease and found a special provision that appears to allow owners to raise rents to the maximum allowable amount based on new AMGI figures. Tenants said similar notices and rent adjustments also appeared in online resident portals on June 1.
A spokesperson for The Palms at Town Center, said the numbers in the mailing represent the maximum rents permitted under HUD guidelines and “do not necessarily mean every resident’s rent will increase to those amounts.”
The spokesperson added that the property’s mission is to provide stable, affordable housing and that management remains committed to working with residents individually and using flexibility available under HUD guidelines to maintain housing stability.
For Robinson, the clarification came as a relief, but she said she hopes other tenants learn from her experience and carefully review how rent adjustments are handled in affordable housing communities.
The company said it is meeting individually with residents who recently moved in or renewed their leases to address questions and determine how the updated HUD limits affect their specific rental rates.
The Palms at Town Center and HTG Management did not provide details on how many residents would see increases or what specific accommodations would be offered to households facing hardship.