Fair Market Rents (FMRs) are dollar figures published annually by HUD that represent the cost of modest rental housing in a given area. They are the direct basis for Section 8 Payment Standards — meaning they control how much of your rent the government will subsidize. Understanding FMRs helps you predict your voucher amount, choose where to search for housing, and advocate for yourself if rates seem too low.
Quick overview
- 40th percentile rule: HUD sets FMR at the rent level where 40% of standard-quality rentals in the area fall at or below that price.
- Updated every October 1: FMRs change each federal fiscal year — always use the current year's figures.
- Bedroom-size specific: HUD publishes separate FMRs for studio through 4-bedroom units in every county and metro area in the U.S.
- PHAs set Payment Standards at 90–110% of FMR: Your actual subsidy cap may be slightly above or below the published FMR.
- Small Area FMRs (SAFMRs): Some large metros use ZIP-code-level rates, which can be significantly higher in expensive neighborhoods.
- Voucher holders can rent above FMR: You may rent a unit priced above the Payment Standard, but you pay the difference (subject to a 40% income cap).
What Are Fair Market Rents?
Fair Market Rents are annual estimates of the gross rent (rent plus tenant-paid utilities) required to obtain modest, safe rental housing in a given metropolitan area or non-metropolitan county. HUD publishes them every year in September, effective October 1 (the start of the federal fiscal year).
FMRs are set at the 40th percentile of gross rents for "standard quality" units occupied by recent movers — people who moved into their current unit within the past 15 months. The use of recent movers (rather than all renters) means FMRs reflect current market conditions rather than long-held leases at below-market rates.
How HUD Calculates Fair Market Rents
HUD uses data primarily from the U.S. Census Bureau's American Community Survey (ACS), supplemented by telephone surveys in some high-cost areas. The process (HUD, FMR Methodology):
- Collect recent-mover rent data for the metropolitan area or county
- Filter for standard-quality units (excluding substandard housing)
- Include all tenant-paid utility costs in the gross rent figure
- Set the rate at the 40th percentile of the resulting distribution
- Apply a trend factor to account for the time lag between survey collection and implementation
FMR by Bedroom Size (2026)
HUD publishes separate FMRs for five unit sizes. Larger units have higher FMRs but are not simple multiples of the two-bedroom base:
| Bedroom Size | Typical Ratio vs. 2-BR | Intended Household Size |
|---|---|---|
| Efficiency (0-BR) | ~65–70% | 1 person |
| 1 Bedroom | ~80–85% | 1–2 people |
| 2 Bedroom | 100% (baseline) | 3–4 people |
| 3 Bedroom | ~128–135% | 5–6 people |
| 4 Bedroom | ~145–165% | 7+ people |
How FMRs Affect Your Section 8 Voucher
Your PHA uses the FMR to set its Payment Standard — the maximum amount it will contribute to your rent. PHAs may set their payment standard anywhere from 90% to 110% of the FMR (and up to 120% with HUD approval in high-cost areas). The chain works like this:
- HUD publishes the FMR for your area and bedroom size
- Your PHA sets a Payment Standard (typically 100% of FMR)
- Your subsidy = Payment Standard minus your Total Tenant Payment (~30% of adjusted income)
- If the unit's rent exceeds the Payment Standard, you pay the gap (first-year cap: 40% of income)
What Happens When FMRs Are Too Low?
In tight rental markets, actual asking rents often exceed the FMR, making it hard for voucher holders to find willing landlords. Options when this happens:
- Request an exception payment standard: Many PHAs allow higher payment standards for specific units, especially for people with disabilities (HUD, 24 CFR §982.505(d)).
- Use Small Area FMRs (SAFMRs): If your metro uses ZIP-code-level FMRs, look for ZIP codes with higher rates — you can often find more affordable options there too.
- Use portability: Move your voucher to an adjacent county or metro area where actual rents are lower relative to the FMR.
- Negotiate with the landlord: Some landlords will adjust rent to fall within the Payment Standard, especially in slower rental markets.
Standard Area vs. Small Area FMRs
| Type | Geographic Level | Where Used |
|---|---|---|
| Standard FMR | Metro area or county-wide | Most PHAs in the U.S. |
| Small Area FMR (SAFMR) | ZIP code level | Designated high-cost metros (e.g., Dallas, Chicago, Los Angeles area PHAs) |
SAFMRs can be dramatically higher in expensive ZIP codes and lower in affordable ones. If your PHA uses SAFMRs, the FMR for a given unit depends on where the unit is located, not just the metro-wide average.
Where to Find Current FMR Data
HUD publishes all current and historical CONUS FMRs at huduser.gov/portal/datasets/fmr.html. You can search by state, county, or metropolitan statistical area. Our Section 8 calculator pulls this data automatically — enter your county and bedroom count for an instant estimate.
FAQ
How often are Fair Market Rents updated?
HUD updates FMRs annually, effective October 1 (the start of the federal fiscal year). In some high-cost markets HUD may issue interim updates during the year.
Is the FMR the same as the Payment Standard?
No. The FMR is the HUD-published benchmark. The Payment Standard is what your PHA actually uses, set between 90–110% of the FMR. They are often equal but not always.
Can I rent a unit that costs more than the FMR?
Yes. You pay the difference between the Payment Standard and the actual rent. However, your total rent burden cannot exceed 40% of your adjusted monthly income in the first year of a new lease.
Where can I find FMRs for my county?
Visit huduser.gov/portal/datasets/fmr.html and search by state or county, or use our Section 8 calculator which looks up the current FMR for your location automatically.
People Also Ask
Does FMR include utilities?
Yes. HUD's FMR is a gross rent figure that includes an estimate of tenant-paid utilities. If the landlord pays utilities, the FMR-based rent figure is adjusted downward accordingly.
What is the FMR for a 2-bedroom in my area?
FMRs range from under $700 in rural areas to over $3,000+ in high-cost cities. Use huduser.gov or our Section 8 calculator to look up the exact figure for your county.
Sources
- HUD — Fair Market Rents Overview (huduser.gov)
- HUD — FMR Methodology Documentation (huduser.gov)
- HUD — 24 CFR Part 982 (HCV Payment Standards)
- HUD — Small Area Fair Market Rents (huduser.gov)
- U.S. Census Bureau — American Community Survey
Disclaimer: Fair Market Rents and Payment Standards change every October 1. Always verify current figures at huduser.gov or with your local PHA before making housing decisions. This guide is for informational purposes only.