Fair Market Rent (FMR) is the amount HUD determines is needed to rent a modest, safe apartment in your area. It's set at the 40th percentile of rents — meaning 40% of units in the area rent at or below FMR. Your local housing authority uses FMR to set your payment standard, which directly determines the maximum rent your voucher will cover.
How HUD Calculates Fair Market Rent
Every year, HUD publishes updated FMR numbers for every metropolitan area and county in the country. The calculation uses American Community Survey data, recent mover rental data, and local adjustments. FMRs are set by bedroom size — a 2-bedroom FMR is the baseline, and other sizes are calculated as ratios.
FMRs are updated annually, usually published in the fall and effective the following October. If rents in your area have been rising fast, the FMR may lag behind actual market conditions.
FMR vs. Payment Standard — What's the Difference?
FMR is what HUD publishes. Your payment standard is what your PHA actually uses, and it can be set between 90% and 110% of FMR (or higher with HUD approval). A PHA in a tight rental market might set payment standards at 110% of FMR to help voucher holders find apartments. A PHA with plenty of affordable units might set it at 90%.
Your payment standard — not FMR — is what determines the maximum rent your voucher will cover. If you find an apartment that costs more than the payment standard, you pay the difference out of pocket (up to 40% of your adjusted monthly income for new tenancies).
Small Area Fair Market Rents (SAFMRs)
Standard FMRs cover an entire metro area. But rents in downtown Manhattan are very different from rents in outer Queens, even though they're the same metro. Small Area FMRs (SAFMRs) set different rates by ZIP code, which can give voucher holders more purchasing power in lower-cost neighborhoods and more realistic assistance in high-cost ones.
HUD requires SAFMRs in about two dozen metro areas and allows any PHA to opt in. If your PHA uses SAFMRs, your payment standard depends on which ZIP code you're looking in.
What If FMR Is Too Low for Your Area?
If you're struggling to find a unit within the payment standard, you have options:
Ask about exception payment standards. PHAs can request HUD approval for payment standards above 110% of FMR for specific areas or circumstances.
Look at SAFMR areas. If your PHA uses SAFMRs, some ZIP codes may have higher payment standards than others.
Request a reasonable accommodation. If you have a disability-related need for a specific type of unit that costs more, you may be able to get an exception payment standard as a reasonable accommodation.
Search in different neighborhoods. Payment standards may go further in areas with lower average rents, while still meeting your needs for schools, transit, and services.
Negotiate with landlords. Some landlords will lower the rent to meet the payment standard, especially if they'd otherwise have a vacancy.
How to Look Up FMR for Your Area
HUD publishes FMR data at huduser.gov/portal/datasets/fmr.html. You can search by state, county, or metro area. Your PHA's website should also list their current payment standards, which may differ from the published FMR.