Last updated 2026-07-10
TL;DR
Fair market rents (FMRs) are dollar limits HUD publishes each year, usually in the fall, that cap what a Section 8 voucher will cover in a given area. They vary by bedroom size and metro. Your local housing authority uses the FMR to set its own payment standard, which runs from 90% to 110% of the FMR (higher with HUD approval).
What is a fair market rent and why does HUD publish it?
A fair market rent is HUD's estimate of what a modestly priced rental costs in a specific area, including utilities unless the landlord pays them separately. HUD publishes these numbers every year under Section 8(c)(1) of the United States Housing Act of 1937, with the rules codified at 24 CFR Part 888 [1]. The point is to give public housing authorities (PHAs) a data-driven baseline so their payment standards track real local rents instead of a local board's guess.
An FMR is not the rent a tenant pays. It is the cap that tells a PHA how much it can reasonably subsidize. A landlord's actual asking rent can be higher or lower. Higher, and the tenant covers the gap out of pocket, subject to affordability rules. Lower, and the voucher covers its share while the tenant pays theirs, usually around 30% of adjusted income.
HUD sets FMRs for every metropolitan statistical area (MSA) in the country plus non-metropolitan counties, so there are hundreds of separate FMR areas. A two-bedroom FMR in rural Mississippi looks nothing like one in San Jose. For fiscal year 2025, the national spread runs from roughly $700 for a two-bedroom in some rural counties to over $3,200 in the San Jose metro [2]. That gap matters a lot if you are porting a voucher or picking where to search.
How does HUD calculate fair market rents?
HUD builds FMRs mostly from American Community Survey (ACS) data collected by the Census Bureau, then filters for recent movers so the estimate reflects what people paid on new leases rather than old ones [7]. The statute pegs the FMR to the 40th percentile of gross rents paid by recent movers for standard-quality units [1]. That percentile is a deliberate choice. It means the FMR should cover at least 40% of the units available in the area, which HUD treats as enough market access to find a place.
Some high-cost or fast-moving markets get the 50th percentile instead. For FY2025, HUD flagged certain areas where the 40th percentile was too low for voucher holders to lease up, and those areas use the higher calculation. HUD's annual FMR documentation lists which ones qualify.
There is also a trend factor. ACS data lags by a year or two, so HUD adds a growth adjustment built on Consumer Price Index (CPI) rent data and other sources to bridge the gap between the survey and the fiscal year the FMR takes effect. That adjustment carried real weight after the pandemic rent spike. Some metros saw two-bedroom FMRs jump 20% or more year over year in FY2023 [8].
Small areas get their own treatment. HUD offers Small Area FMRs (SAFMRs), which set the number at the ZIP-code level instead of across the whole metro. Some PHAs must use them; others opt in. The logic is that a metro-wide FMR can run too low for higher-opportunity neighborhoods, which boxes voucher holders out of them [3].
What are the FMR numbers for fiscal year 2025?
HUD published the FY2025 FMRs in September 2024, effective October 1, 2024 [2]. The table below samples metros across cost tiers so you can see the real range. These are gross rent figures, meaning unit rent plus tenant-paid utilities.
| Metro area | 0-BR | 1-BR | 2-BR | 3-BR | 4-BR |
|---|---|---|---|---|---|
| San Jose-Sunnyvale-Santa Clara, CA | $2,156 | $2,597 | $3,218 | $4,364 | $5,094 |
| New York-Newark-Jersey City, NY-NJ | $1,958 | $2,155 | $2,519 | $3,196 | $3,537 |
| Chicago-Naperville-Elgin, IL-IN-WI | $1,047 | $1,203 | $1,445 | $1,766 | $2,118 |
| Dallas-Fort Worth-Arlington, TX | $1,099 | $1,248 | $1,547 | $2,043 | $2,509 |
| Jackson, MS HUD Metro FMR Area | $694 | $780 | $932 | $1,213 | $1,334 |
| Non-metro rural Montana | $619 | $699 | $876 | $1,148 | $1,287 |
Source: HUD FY2025 FMR schedule [2]. Numbers reflect the 40th-percentile gross rent except in areas HUD designates for the 50th percentile.
These numbers reset every fiscal year. If you are reading this after October 2025, pull the FY2026 schedule from HUD. The lookup tool lives at huduser.gov, where you enter a state, county, or metro and get the current and prior-year FMRs side by side [2].
What is the difference between a fair market rent and a payment standard?
This trips up more tenants and landlords than anything else, so here it is straight.
A fair market rent is HUD's number. A payment standard is your PHA's number. Regulation lets PHAs set payment standards between 90% and 110% of the current FMR with no HUD sign-off required [4]. Going above 110% takes HUD approval, which usually comes only in tight markets.
Say HUD publishes a two-bedroom FMR of $1,500. Your PHA can set its payment standard anywhere from $1,350 to $1,650 on its own, or higher with approval. A handful of PHAs push to 120% or beyond in expensive markets where even 110% leaves voucher holders unable to find a place.
Here is what that means for you. You cannot look up the FMR and assume that is what your voucher covers. Get the payment standard schedule from your specific PHA. Two tenants in the same metro served by different PHAs (which happens in big metros where a city and a county run separate programs) can face meaningfully different payment standards even though HUD published one FMR for the whole region.
For landlords, the payment standard is the ceiling on what the PHA pays toward rent and utilities. Charge $1,700 for a unit where the payment standard is $1,500, and that is allowed, but the tenant covers the extra $200 on top of their usual 30%-of-income share, subject to the rule that total out-of-pocket rent cannot top 40% of monthly income at initial lease-up [5].
If you are hunting for homes for rent with section 8, knowing your PHA's payment standard before you start keeps you from falling for units that are out of range.
Where do you find fair market rents on HUD.gov?
The official source is HUD User, HUD's research and data division, at huduser.gov [2]. That is where the FMR dataset lives, not the main hud.gov homepage. From the FMR page you can:
- Download the full national schedule as an Excel or PDF file
- Use the online search tool for any county, metro area, or ZIP code (if your PHA uses SAFMRs)
- Pull prior-year FMR schedules going back to FY1983
- Read the methodology documentation HUD publishes with each year's release
The main hud.gov site links out to HUD User for the actual data. You can start at hud.gov and follow the Section 8 links, but you will end up in the same place. Bookmark the HUD User FMR page and skip the detour.
HUD also runs proposed rules, comments, and final FMRs through the Federal Register. The FY2025 final rule appeared there in September 2024 [9]. If you want to know why a particular area's FMR moved a lot, the preamble to that notice lays out the methodology and any area-specific adjustments.
For a quick estimate that folds in utility allowances and payment standards, a fair market rent calculator that pulls from HUD's data can save you time. Verify the result against the official schedule before you rely on it.
When does HUD update fair market rents, and what triggers big changes?
HUD posts proposed FMRs in the Federal Register each spring, usually April or May, and takes public comments for 30 days. The final FMRs come out in late summer or early fall, effective October 1, the start of the federal fiscal year [1]. PHAs then update their payment standards, with some flexibility on timing.
Big year-over-year swings show up when ACS data catches real rent movement in an area, or when the trend factor runs large because CPI rent components rose sharply. FY2022 and FY2023 were unusual. Pandemic rent increases pushed FMRs up hard across many markets, with some metros seeing two-bedroom FMRs jump 15% to 25% in a single year [8]. Stable markets normally move 2% to 5%.
Big decreases are rare. HUD has generally applied a hold-harmless provision that keeps FMRs from dropping below the prior year in most cases, though not always for every area.
SAFMR schedules also update yearly. ZIP-code FMRs can swing harder than metro averages because a neighborhood's rent trend can pull away from the overall MSA. If you use a voucher in a SAFMR area and your payment standard shifts unexpectedly, check whether the ZIP-level FMR underneath it moved.
How do small area FMRs (SAFMRs) work and which PHAs use them?
Small Area FMRs set the 40th-percentile rent at the ZIP-code level instead of across the full metro. HUD started requiring certain large PHAs to use them under a final rule published in 2016, and the program grew through later updates [3].
The reasoning is straightforward. A single metro FMR blends expensive neighborhoods and cheap ones into one average. In a metro where the two-bedroom FMR is $1,400, ZIP codes with good schools and low crime might actually rent for $1,800, while distressed areas rent at $900. Under the old system, voucher holders could afford the cheap neighborhoods but not the expensive ones, which packed voucher users into high-poverty areas. SAFMRs raise the payment standard in expensive ZIPs and lower it in cheap ones, giving voucher holders a real shot at higher-opportunity areas.
For FY2025, HUD requires PHAs in 24 designated metros to use SAFMRs [3]. PHAs outside that list can opt in. If your PHA uses SAFMRs, your payment standard depends on your unit's ZIP code more than the metro average. Worth knowing if you are searching for a section 8 rent house in a specific neighborhood, because the subsidy ceiling can change across a single ZIP boundary.
Landlords in high-cost ZIPs inside a SAFMR metro often find the payment standard runs well above the old metro-wide number. That can make accepting a voucher pencil out in neighborhoods where it never used to.
How do FMRs affect tenants with Section 8 vouchers in practice?
Your voucher's buying power depends on the FMR and what your PHA does with it. The chain goes like this: HUD sets the FMR, your PHA sets a payment standard somewhere in the 90%-to-110% range (or higher with approval), and that payment standard caps the subsidy the PHA pays on your behalf.
Find a unit at or below the payment standard, and your share is roughly 30% of adjusted income while the PHA pays the rest. Find one above it, and you cover the gap on top of your 30% share, subject to affordability limits.
Here is something many tenants miss. You can sometimes negotiate rent. Landlords with vacancies or new to the program may accept rent at or below the payment standard. There is a second ceiling too: the PHA's rent reasonableness test caps rent at what comparable unassisted units in the area go for, so the FMR is never the only limit. "A landlord cannot charge a voucher tenant more than the market comps support, regardless of the payment standard" is the practical takeaway from the rent reasonableness rule at 24 CFR Part 982 [5].
When FMRs rise, tenants already in a unit often benefit at renewal because the PHA's payment standard may climb, which can lower their share. When FMRs stall or a PHA drags its feet on updating the payment standard, tenants get squeezed by market rents their voucher no longer keeps up with.
Pull the FMR for your area before you tour anything. It lets you filter listings against reality instead of walking through units the voucher will never cover.
For more places to search, see low income houses for rent and apts that take section 8.
How do FMRs affect landlords deciding whether to accept vouchers?
Landlords want to know whether the voucher payment will cover their asking rent. The answer runs through the payment standard for their PHA's jurisdiction, and the FMR is where that calculation starts.
Where the payment standard sits at or near market rent, accepting vouchers is a wash on rent collection. You get a direct payment from the PHA (usually deposited on schedule each month) plus the tenant's portion. Late PHA payments happen but are rare, and the direct-deposit setup is generally steadier than chasing a private-pay tenant.
In expensive markets where rents run well above the FMR, the math tightens. A landlord charging $2,200 in a jurisdiction with a $1,900 two-bedroom payment standard is looking at a $300 gap the tenant has to absorb. Legal and common, but it shrinks the pool of tenants who qualify, since the tenant's income has to cover 30% of income plus that $300 without breaking the 40% initial-lease cap.
SAFMR areas change the picture. In an expensive ZIP inside a SAFMR metro, the ZIP-level payment standard can top what a landlord with an average-priced unit charges, so full coverage is possible in high-demand neighborhoods.
HUD's landlord resources at hud.gov cover the inspection process, lease addenda, and HAP contract terms that come with accepting a voucher [6]. The one-time setup (inspection, paperwork, signing the HAP contract) is the real friction point.
If you are researching hud housing for rent or listing on platforms like go section 8 houses for rent, the local FMR is your first check.
Can a PHA or tenant request an exception to the FMR?
Yes. There are two main routes.
First, a PHA can request a payment standard above 110% of FMR. HUD may grant these exception payment standards where a study or data shows voucher holders cannot lease up at the standard rate [4]. The request needs documentation, and HUD is more willing to say yes in extremely tight rental markets.
Second, an individual tenant can request an exception as a disability accommodation. Under the Fair Housing Act and Section 504 of the Rehabilitation Act, a PHA has to consider a reasonable accommodation request to approve a higher payment standard, or to allow a unit that costs more than the standard, when the need ties to the tenant's disability [10]. These go case by case, and the accommodation has to be documented and genuinely connected to the disability.
PHAs also have discretion to approve exception rents for specific units in some situations, especially in the project-based voucher program. In the tenant-based Housing Choice Voucher program, the levers are the PHA's payment standard and the rent reasonableness test.
Public comment is a third path. If an area's FMR looks like it rests on flawed data, PHAs, tenant advocates, and local governments can submit comments during the 30-day window after HUD posts proposed FMRs each spring [1]. HUD does sometimes adjust FMRs when the local data is compelling.
What should you actually do with the FMR number once you have it?
Tenants, start with your PHA's current payment standard schedule. Call the PHA or download it from their site. The payment standard can differ from the FMR, sometimes by a lot. Then subtract a utility allowance if the unit has tenant-paid utilities. Your PHA publishes a utility allowance schedule that estimates monthly utility costs by unit size and utility type. The effective rent ceiling is: payment standard minus your applicable utility allowance.
An example. Two-bedroom payment standard of $1,400, utility allowance of $150 for electric heat and hot water. A landlord can ask at most $1,250 and stay inside what the voucher fully covers. Ask $1,350, and you pay the extra $100 yourself on top of your 30%-of-income share.
Landlords, use the FMR as a fast screen before you sink time into the HAP contract process. If your asking rent lands within 10% to 15% of the FMR, accepting vouchers is probably workable. If you are 30% above the FMR in a non-SAFMR area, the math gets hard.
Either way: hud.gov is the starting point for the official Housing Choice Voucher rules, and huduser.gov is where the FMR data lives [2][6]. Print or bookmark the current year's FMR table for your county. Rents reset every October 1, so check again once each fiscal year starts.
For a wider look at low income housing options, treat the FMR as one data point to track alongside actual market listings.
Frequently asked questions
Where exactly do I find fair market rents on HUD.gov?
The data lives at HUD's research portal, huduser.gov, not the main hud.gov homepage. From the FMR page you can search by state, county, or metro area and download the full FY2025 schedule. The main hud.gov site links to HUD User for FMR data. Bookmarking the HUD User FMR page directly is faster than navigating from hud.gov each time.
How often are fair market rents updated?
HUD publishes updated FMRs every year. Proposed FMRs come out in the spring (usually April or May) with a 30-day comment period, and final FMRs are published in late summer or early fall. They take effect October 1, the start of the federal fiscal year. Your PHA then decides how and when to update its payment standards based on the new figures.
Is the fair market rent the maximum rent a Section 8 landlord can charge?
No. The FMR feeds into your PHA's payment standard, which is the actual ceiling on the PHA's contribution. A landlord can charge above the payment standard, but the tenant covers the gap. The rent also must pass a rent reasonableness test, meaning it cannot exceed what comparable unassisted units in the area rent for, regardless of where it sits relative to the FMR.
What is the difference between a fair market rent and a payment standard?
HUD sets the FMR; your local PHA sets its payment standard. PHAs can set payment standards between 90% and 110% of the FMR without needing HUD approval, and higher with approval. If your area's two-bedroom FMR is $1,400, your PHA's payment standard could legally be anywhere from $1,260 to $1,540. Always get the payment standard directly from your PHA.
What percentile of rents does HUD use for the FMR calculation?
HUD uses the 40th percentile of gross rents paid by recent movers for standard-quality units. That threshold means the FMR should cover at least 40% of available units in the area. Some high-cost or difficult-to-lease markets use the 50th percentile instead; HUD designates those areas separately and documents them in the annual FMR schedule.
What is a Small Area FMR and does it affect my voucher?
A Small Area FMR calculates the 40th-percentile rent at the ZIP-code level rather than for the whole metro area. HUD requires 24 large PHAs to use SAFMRs, and others can opt in. If your PHA uses SAFMRs, your effective payment standard depends on the ZIP code of your unit, more than the metro average. Higher-rent ZIP codes get higher payment standards under this system.
Can I ask my PHA for a higher payment standard than the FMR allows?
You can request a reasonable accommodation if your disability requires a unit that costs above the payment standard. PHAs are required to consider such requests under the Fair Housing Act and Section 504. PHAs themselves can also request exception payment standards from HUD above 110% of FMR if local data shows voucher holders cannot lease up at the standard rate. Neither route is automatic.
Does the FMR include utilities?
Yes. FMRs are gross rent figures, meaning they include an estimate for tenant-paid utilities. When a landlord pays all utilities, the FMR comparison is straightforward. When the tenant pays utilities, the PHA applies a utility allowance, and the effective rent ceiling for the landlord is the payment standard minus the utility allowance. Your PHA publishes a utility allowance schedule by unit size and utility type.
Why did my area's FMR jump so much recently?
Several metros saw FMR increases of 15% to 25% in FY2022 and FY2023 because HUD's ACS data and trend factor captured the sharp rent increases of the pandemic period. HUD applies a CPI-based trend factor to bridge the gap between survey data and the current fiscal year. When market rents rise fast, that trend factor amplifies the FMR increase. Stability typically returns as the survey data catches up to normalized market conditions.
Can public comments actually change the FMR for my area?
Yes, occasionally. After HUD publishes proposed FMRs in the spring, there is a 30-day comment period. PHAs, tenant advocates, local governments, and others can submit local rent data or methodology critiques. HUD sometimes adjusts final FMRs based on compelling local evidence submitted during that window. The Federal Register preamble for the final rule explains any changes made in response to comments.
Are fair market rents the same as HUD income limits?
No, these are two separate calculations. FMRs estimate local rent levels to set subsidy ceilings. HUD income limits estimate median family income by area and are used to determine whether a household qualifies for housing assistance programs. Both are published annually on HUD User, but they are derived from different data and serve different purposes in the Section 8 program.
How do I use the FMR to estimate whether a specific apartment is within my voucher range?
Get your PHA's payment standard for the bedroom size you need. Subtract the utility allowance for tenant-paid utilities from your PHA's schedule. The result is the maximum a landlord can ask and still be fully covered by the voucher. If the asking rent is above that number, you will pay the difference out of pocket on top of your normal 30%-of-income rent share, up to the 40%-of-income initial lease cap.
Do FMRs apply to project-based Section 8 or only housing choice vouchers?
FMRs apply to both the Housing Choice Voucher (tenant-based) program and project-based Section 8 programs, though they interact differently. For Housing Choice Vouchers, FMRs drive payment standards. For project-based programs and certain other HUD programs, FMRs serve as rent caps and eligibility benchmarks. The HUD User FMR page notes which programs use the FMR schedule.
What year's FMR is currently in effect?
As of October 1, 2024, the FY2025 FMRs are in effect. FY2026 FMRs will be published in fall 2025 and take effect October 1, 2025. Always check the effective date on huduser.gov when you look up an FMR, since the page may show both the current year and the upcoming proposed figures during the comment period.
Sources
- U.S. Code, United States Housing Act of 1937 Section 8(c)(1); 24 CFR Part 888: Statutory authority for FMR publication; 40th-percentile gross rent requirement; annual update requirement
- HUD User, FY2025 Fair Market Rents dataset and documentation: FY2025 FMR schedule effective October 1 2024; specific metro-level FMR values by bedroom size; annual publication in Federal Register
- HUD User, Small Area Fair Market Rents dataset and Final Rule: SAFMR program requires certain large PHAs to calculate FMRs at ZIP-code level; 24 designated metros as of FY2025
- HUD, Housing Choice Voucher Program payment standard rules (24 CFR 982.503): PHAs may set payment standards between 90% and 110% of FMR without HUD approval; higher exception payment standards require HUD approval
- HUD, Housing Choice Voucher Program regulations, 24 CFR Part 982: Rent reasonableness requirement; tenant share cannot exceed 40% of monthly income at initial lease-up; reasonable accommodation provisions
- HUD.gov, Housing Choice Voucher landlord resources: Landlord guidance on HAP contracts, lease addenda, and inspection requirements under the HCV program
- U.S. Census Bureau, American Community Survey program overview: ACS is the primary data source HUD uses to calculate FMRs, with recent-mover data isolating new lease rent levels
- HUD User, FY2023 Fair Market Rents documentation: Some metros saw two-bedroom FMR increases of 20% or more in FY2023 due to pandemic-era rent growth captured in ACS trend factors
- Federal Register, HUD FY2025 Fair Market Rents notice (published September 2024): Final FY2025 FMRs published in Federal Register in September 2024, effective October 1 2024; preamble explains methodology and area-specific adjustments
- HUD, Office of Fair Housing and Equal Opportunity, reasonable accommodation guidance: PHAs must consider reasonable accommodation requests for higher payment standards when tied to a tenant's documented disability