Fair Market Rent (FMR)
HUD published rent limits that set the maximum subsidy for Housing Choice Voucher units in each metro area.
Definition
Fair Market Rent is HUD's annually published estimate of the gross rent, meaning rent plus utilities, for a modest rental unit in each metropolitan area and non metropolitan county. FMR is broken out by bedroom count (0 to 4 bedrooms) and updated every October. Public Housing Authorities use FMR as the basis for setting the payment standard, which is the maximum amount a voucher can subsidize. Most PHAs set the payment standard between 90% and 110% of FMR, with exceptions for high cost areas. For Section 8 landlords, FMR is the ceiling on what you can charge for a voucher tenant before the tenant has to cover the overage out of pocket. Knowing the FMR for your target market lets you underwrite Section 8 deals with accurate rent assumptions. You can look up current FMR at huduser.gov or use a tool that automates the lookup.
Example
HUD 2026 FMR for a 3 bedroom unit in Birmingham, Alabama is $1,280. The Birmingham Housing Authority sets the payment standard at 105% of FMR, which is $1,344. A landlord can charge up to $1,344 before the tenant pays out of pocket.
Frequently asked
How often does HUD update Fair Market Rent?
Annually, with new rates effective October 1 each year.
Where can I look up FMR for my area?
HUD publishes current and historical FMR at huduser.gov. Search by state and county or metro area.
Is FMR the same as what Section 8 will pay?
Not exactly. PHAs set a payment standard between 90% and 110% of FMR, and the actual HAP depends on the tenant's income and the contract rent.
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