Fair Market Rents (FMRs) are rents in a local market’s average price range. These are used by the U.S. Department of Housing and Urban Development (HUD) to set maximum rents for certain HUD-insured loan programs. In general, fair market rents are only applicable to projects involved in the housing choice voucher program (Section 8), projects with certain expiring Section 8 contracts, and projects with certain kinds of SRO (single-room occupancy) housing.

FMRs are estimates of 40th percentile gross rents for standard quality units within a metropolitan area or non metropolitan county. HUD annually estimates FMRs for metropolitan areas defined by the Office of Management and Budget (OMB) as well as for subdivisions of OMB metropolitan areas, and, even more granular, each nonmetropolitan county. FMRs are required (by federal statute) to be posted no less than 30 days before they are to become effective. FMRs are required to be made effective at the beginning of the federal fiscal year (generally October 1).

For more information, please visit the HUD Fair Market Rents page.

Fair Market Rents (FMRs) are determined by the U.S. Department of Housing and Urban Development (HUD) through the use of renter surveys. FMRs are estimates of 40th percentile gross rents for standard quality units within a metropolitan area or non metropolitan county. HUD annually estimates FMRs for metropolitan areas defined by the Office of Management and Budget (OMB) as well as for subdivisions of OMB metropolitan areas, and, even more granular, each nonmetropolitan county. You can determine current and historical FMRs for your area by visiting HUD’s FMR Dataset and Search Tool.

Fair Market Rents (FMRs) are used across HUD programs for a variety of different uses such as:

• Determining payment standard amounts for the Housing Choice Voucher program
• Determining initial renewal rents for some expiring project-based Section 8 contracts
• Determining initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program (Moderate Rehab)
• Benchmark for rent ceilings for rental units for HOME Investment Partnerships program and Emergency Solution Grants program
• Benchmark for calculation of maximum award amounts for Continuum of Care recipients as well as the maximum amount of rent a recipient may pay for property leased with Continuum of Care funds
• Benchmark for calculation of flat rents in Public Housing units.

The benefits of Fair Market Rents (FMRs) are that they provide a reliable and consistent way to determine the cost of rent in a given area. This helps to ensure that rental prices are fair and equitable for all tenants. Additionally, FMRs are used to determine payment amounts for various housing assistance programs, such as the Section 8 Housing Choice Voucher Program. This helps to ensure that those who are in need of housing assistance are able to receive it.

Fair Market Rents (FMRs) are used by HUD to set maximum rents for certain HUD-insured loan programs. This means that rental prices for these programs cannot exceed the FMRs set by HUD. FMRs are determined by surveys of rental prices in a given area, and are updated annually. For more information, please visit the HUD Fair Market Rents page.

Fair Market Rents (FMRs) are rents in a local market’s average price range, as determined by the U.S. Department of Housing and Urban Development (HUD). FMRs are used by HUD to set maximum rents for certain HUD-insured loan programs. Average Market Rents (AMRs) are also determined by HUD, and are used to set payment standards for the Housing Choice Voucher Program (Section 8). AMRs are based on the 40th percentile of gross rents for standard quality rental units in a given area. AMRs are generally higher than FMRs, and are updated on an annual basis.

Sources:

• Fair Market Rent (FMR): Use Cases and Calculator
• What are Fair Market Rents?

Fair Market Rents (FMRs) are used by the US Department of Housing and Urban Development (HUD) to set maximum rents for certain programs, including renewal rents for some Section 8 programs, including housing assistance payment (HAP) contracts for single-room occupancy (SRO) housing programs. FMRs are also used to determine rent ceilings for the HOME Investment Partnerships program and the Emergency Solution Grants program, as well as the Moderate Rehabilitation Single-Room Occupancy program. To determine the fair market rent for your area, visit the HUD User site’s Fair Market Rent Documentation System.