What cities use small area fair market rents for section 8

Last updated 2026-07-11

What are Small Area Fair Market Rents and how do they differ from regular FMRs?

A standard Fair Market Rent is one number for a whole metro or county. HUD publishes it every year, and your housing authority sets its payment standard somewhere between 90% and 110% of that number. Here's the problem. A metro-wide average means nothing when a two-bedroom in the city's cheapest neighborhood rents for $900 and a two-bedroom five miles away in a better school district rents for $1,600. In the pricier ZIP, the voucher is dead on arrival.

Small Area Fair Market Rents fix that by setting a separate FMR for every USPS ZIP code inside a metro. HUD builds SAFMRs from the same American Community Survey and rental market data behind regular FMRs, just broken down to the ZIP level. The payoff is a payment standard that tracks what a specific neighborhood actually costs, not the blended average of a whole region ^[1].

For voucher holders, that means you can realistically shop for section 8 houses for rent in neighborhoods that used to be off the table. For landlords, it means the subsidy tied to your property's ZIP code may run higher or lower than the old metro-wide figure. The governing rule for SAFMRs is codified at 24 CFR Part 888 ^[2].

Which cities and metros are required to use Small Area FMRs?

HUD runs a two-part system: mandatory metros and voluntary opt-ins. The mandatory list traces back to a 2016 final rule that took effect in January 2017, and HUD updates it periodically.

A metro lands on the mandatory list when it clears all of these: at least 2,500 vouchers in use, at least 25% of voucher holders sitting in concentrated low-opportunity census tracts, ZIP-level rents that differ meaningfully from the metro-wide FMR, and a rental market big enough for the ZIP data to hold up statistically ^[3].

The metros HUD has designated as mandatory SAFMR areas include (but are not limited to):

Metro Area	State(s)	Approx. # PHAs Affected
Dallas-Fort Worth-Arlington	TX	Multiple
Chicago-Joliet-Naperville	IL/IN/WI	Multiple
Washington-Arlington-Alexandria	DC/VA/MD/WV	Multiple
Los Angeles-Long Beach-Santa Ana	CA	Multiple
Pittsburgh	PA	Multiple
San Antonio	TX	Multiple
Palm Bay-Melbourne-Titusville	FL	Multiple
Sacramento-Arden-Arcade-Roseville	CA	Multiple
Jacksonville	FL	Multiple
Oxnard-Thousand Oaks-Ventura	CA	Multiple
Omaha-Council Bluffs	NE/IA	Multiple
Virginia Beach-Norfolk-Newport News	VA/NC	Multiple
Baltimore-Towson	MD	Multiple
Bridgeport-Stamford-Norwalk	CT	Multiple
Charlotte-Gastonia-Rock Hill	NC/SC	Multiple

HUD publishes the binding list each year in the Federal Register alongside the annual FMR notice. The roster shifts a little year to year as metros enter or leave on updated voucher concentration data ^[3]. Verify the current list at HUD's official FMR page rather than trusting any static list, including this one.

The full current list lives at HUD's Fair Market Rents page (huduser.gov) ^[1]. As of the most recent cycle, roughly 25 to 30 metros are mandatory.

Can a housing authority outside a mandatory metro choose to use Small Area FMRs?

Yes. Any public housing authority can adopt SAFMRs on its own through a voluntary election under 24 CFR 888.113 ^[2]. The PHA sends a request to HUD, and if HUD approves, it sets payment standards by ZIP code instead of metro-wide.

Plenty of PHAs have done this to give voucher holders a real shot at opportunity areas. The Moving to Work (MTW) program let some agencies test place-based rent structures that work much like SAFMRs even before the formal rule existed ^[4].

Not sure whether your PHA uses SAFMRs? Ask your caseworker, or pull the PHA's payment standard schedule, which every PHA has to publish. Payment standards listed by ZIP code or neighborhood, rather than one metro number, are the tell. Your housing authority has to disclose which system it uses in its Administrative Plan.

How does HUD calculate the ZIP-code rent for each area?

HUD starts with the same sources behind metro-wide FMRs: the Census Bureau's American Community Survey (ACS) 5-year estimates and, where it exists, more recent random-digit-dialing survey data. For SAFMRs, it breaks those rent figures down to the ZIP Code Tabulation Area (ZCTA) level.

When a ZIP has too few survey observations to trust, HUD smooths the number. It takes the ratio of the ZIP-level median rent to the metro-level median rent, then applies that ratio to the published metro FMR. That stops estimates from swinging wildly in thin-data areas while still catching neighborhood variation ^[1].

HUD also sets a floor and a ceiling. A ZIP-level SAFMR can't drop below 110% of the statewide non-metro FMR or below 50% of the metro FMR, and it can't climb above 150% of the metro FMR. So even a very expensive ZIP hits a cap, and even a very cheap ZIP has a floor ^[3].

The upshot is simple. ZIP codes in gentrifying or high-opportunity neighborhoods get higher payment standards, and lower-rent ZIP codes get lower ones. That's by design. The goal is to make the voucher work like a real subsidy in high-cost neighborhoods instead of funneling everyone into the cheapest blocks.

What does a Small Area FMR mean for your voucher payment standard?

Payment standards are the numbers your PHA actually uses, set at 90% to 110% of the FMR under standard rules (PHAs can go higher with HUD approval in tight markets) ^[5]. In SAFMR areas, the PHA sets a separate payment standard for each ZIP code.

Say you hold a housing choice voucher program voucher in a mandatory SAFMR metro and you want a high-cost ZIP. The payment standard for that ZIP decides how much HUD covers. You pay the gap between 30% of your adjusted income and the payment standard. If rent runs over the payment standard, you can cover the extra yourself, but only up to the point where your total tenant payment stays at or under 40% of your monthly adjusted income in the first year ^[5].

So SAFMRs open doors. They don't make every apartment affordable. A payment standard of $1,800 in an expensive ZIP beats a metro-wide $1,200 standard, but if the real rent is $2,400, you're eating $600 over standard, and that shoves your housing cost well past 30% of income. Know the actual ZIP-level payment standard before you sign anything.

What did the research say about concentration of voucher holders before SAFMRs?

The policy grew out of a well-documented pattern. When payment standards are metro-wide averages, voucher holders sensibly cluster in the cheaper ZIP codes where the subsidy covers the full rent. A 2018 Urban Institute study found that in large metros, voucher holders were far more concentrated in high-poverty, low-opportunity neighborhoods than the broader low-income rental population ^[6].

HUD's analysis behind the 2016 final rule leaned on a 2015 NYU Furman Center study. In metros with wide gaps between neighborhood rents, the Furman Center found, moving to SAFMRs could shift the effective subsidy enough to put higher-opportunity ZIP codes within reach for most voucher holders. In New York, Dallas, and Chicago, the report noted, ZIP-level rents ran more than 40% off the metro FMR in some neighborhoods ^[7].

HUD put it plainly in the preamble to the final rule: "Small Area FMRs better reflect the cost of renting in specific areas within a metropolitan area and, as a result, increase the ability of voucher holders to rent units in areas of their choice" ^[3]. That's straight from the Federal Register. One honest caveat: the research on real post-SAFMR mobility is still coming in, and early results run mixed depending on the metro and how much housing supply the area actually has.

How do SAFMRs affect landlords who accept Section 8 vouchers?

If your property sits in a lower-rent ZIP inside a mandatory metro, SAFMRs can hand you a lower payment standard than the old metro-wide number. That's a real tradeoff. When the ZIP-specific SAFMR comes in below what you were used to, it changes whether the subsidy covers your asking rent.

In higher-rent ZIP codes, the math flips. The SAFMR may top the old metro-wide standard, which makes your units reachable for voucher holders who couldn't afford your neighborhood before. Your applicant pool grows.

Deciding whether to join the section 8 program in a mandatory SAFMR metro? Step one is to look up the current payment standard for your exact ZIP code, not the metro-wide number. Your local PHA's website should carry a payment standard schedule by ZIP. If you can't find it, call the landlord services line. Many PHAs in SAFMR metros actively recruit landlords in high-opportunity ZIP codes where the payment standard now competes.

VoucherReady's landlord kit has a payment standard lookup checklist and a lease-readiness checklist built for PHAs in SAFMR areas, so you can run the numbers before you commit to the process.

What happened to the 2018 rule that briefly paused mandatory SAFMRs?

This is real history, and it confuses a lot of people. In January 2018, HUD under a new administration published a rule suspending the mandatory SAFMR requirement and making it voluntary again. Civil rights groups, led by the NAACP Legal Defense Fund, took HUD to federal court over it.

A federal district court in Texas vacated HUD's suspension in April 2018, ruling that HUD skipped proper notice-and-comment procedures. The mandatory SAFMRs in the designated metros came back. HUD issued updated guidance afterward and has kept implementing mandatory SAFMRs in those metros since ^[8].

Here's the bottom line. The mandatory SAFMR rule is in effect right now. The 2018 suspension got overturned, and PHAs in mandatory metros have to use ZIP-level payment standards. Still, check the current HUD guidance, because housing policy moves, and what held two years ago may not hold today.

How do you find the Small Area FMR for a specific ZIP code?

HUD runs an interactive database at huduser.gov where you can look up SAFMRs by ZIP code or metro. The tool lives under the Fair Market Rents section and lets you pick a fiscal year, then filter by ZIP or county ^[1].

Here's the practical sequence:

1. Go to huduser.gov and open the Fair Market Rents page. 2. Select "Small Area FMRs" from the FMR type options. 3. Choose the current fiscal year (HUD's fiscal year runs October to September). 4. Search by state, metro, or ZIP code. 5. Note the SAFMR for the bedroom size you need. 6. Then check your PHA's payment standard schedule to see what percentage of SAFMR they've set.

The SAFMR is HUD's ceiling. The payment standard is what your PHA actually pays. Related numbers, but not the same one. Your PHA can set payment standards between 90% and 110% of the SAFMR without special HUD approval ^[5].

Hunting for open section 8 waiting lists in a new metro? Knowing the SAFMR for ZIP codes there is real planning information to have before you apply.

Do SAFMRs apply when you port your voucher to a new city?

Portability throws in a wrinkle. When you port your rental assistance voucher from one PHA to another, the receiving PHA's payment standards and FMR rules take over once it absorbs your voucher or bills the initial PHA ^[9].

Port into a mandatory SAFMR metro and you're under that metro's ZIP-level payment standards. That can help you, especially moving to a higher-opportunity area, if the SAFMR for your target ZIP tops what you're used to. It can also cut against you if your ZIP's SAFMR comes in below your current payment standard.

Port into the new jurisdiction, confirm with the receiving PHA which payment standard schedule covers your target ZIP codes, and run the math before you sign a lease. Porting takes time, and payment standards can change every year, so timing matters. See moving and porting resources for the full process.

One more thing. If the initial PHA is a SAFMR metro but the receiving PHA isn't, or the other way around, the receiving PHA's rules win. You can't drag your old payment standard along with you.

Are there ZIP codes where the SAFMR is actually lower than the old metro FMR?

Yes, and this is the piece of SAFMR policy nobody talks about. In lower-rent ZIP codes inside a mandatory metro, the ZIP-level SAFMR often lands below the old metro-wide FMR. So some voucher holders in cheaper neighborhoods end up with a lower payment standard than before, which shrinks their subsidy on paper.

HUD saw this coming and wrote in transition protections when the mandatory rule took hold. PHAs in newly mandatory metros got a phase-in period to adjust, and tenants already in place at implementation were often held harmless for a stretch ^[3]. For new voucher holders in lower-cost ZIP codes, though, the lower SAFMR is just the deal.

The logic is deliberate. Lower payment standards in low-rent ZIP codes cut the incentive to cluster there, nudging the system toward wider geographic spread. Whether it plays out depends heavily on local housing supply, transit, and whether higher-opportunity ZIP codes have units to rent at all. The policy adjusts incentives better than it builds housing.

Weighing low income housing options across ZIP codes in a mandatory metro? Pull the SAFMRs for each ZIP side by side before you pick where to look.

What should tenants do differently in a Small Area FMR city?

The biggest change: you now have a real reason to search by ZIP code first. Under a metro-wide FMR, the payment standard is identical everywhere, so you just find units and hope the landlord takes vouchers. Under SAFMRs, a ZIP two miles over might carry a payment standard $400 higher, which can put you in a different quality of apartment or a different school district.

Before you tour anything, do this. Get the current payment standard schedule from your PHA (ask for the ZIP-level version specifically), then map which ZIP codes have payment standards that match or beat median rents there. Those are your best bets, the ZIP codes where the subsidy actually competes.

SAFMRs also change every year. If your annual recertification is coming up and you're thinking about a move, check whether the payment standard for your current ZIP or a target ZIP has moved. A drop in the SAFMR can affect whether your current rent stays inside program limits.

For tenants who want a voucher to reach better neighborhoods and schools, the SAFMR system is the most significant structural improvement to the housing section 8 program in the last decade. Use it on purpose. VoucherReady's free tenant tools include a ZIP-level payment standard comparison worksheet you can fill in with your PHA's numbers.

Frequently asked questions

How many metros are required to use Small Area FMRs right now?

Roughly 25 to 30 metros are on HUD's mandatory SAFMR list as of the most recent fiscal year. The exact count shifts a little each year because HUD recalculates voucher concentration data annually. HUD publishes the binding list in the Federal Register each fall alongside the annual FMR notice. Check huduser.gov for the current official list.

Does my housing authority have to use SAFMRs if it's not in a mandatory metro?

No. If your metro isn't on HUD's mandatory list, your PHA uses the standard metro-wide FMR unless it has opted into SAFMRs voluntarily. Any PHA can request to use SAFMRs under 24 CFR 888.113. Ask your PHA directly or check its Administrative Plan to see which system it uses.

What is the difference between a Small Area FMR and a payment standard?

The SAFMR is HUD's published estimate of fair market rent for a specific ZIP code. The payment standard is what your PHA actually uses, set at 90% to 110% of the FMR (or SAFMR in mandatory areas). Your PHA picks the percentage. The payment standard sets your maximum subsidy, not the SAFMR directly. Check both numbers.

Can a landlord in a SAFMR metro charge more than the ZIP-level payment standard?

Yes. Landlords can ask any rent they want. But if the rent tops the payment standard for that ZIP code, the tenant covers the difference out of pocket. In the first year of a lease, the tenant's total payment (subsidy gap plus 30% of income) can't push housing cost above 40% of monthly adjusted income. Above that, the unit usually fails the affordability test.

Does Dallas use Small Area Fair Market Rents?

Yes. Dallas-Fort Worth-Arlington is one of the original metros designated mandatory under HUD's 2016 SAFMR rule. PHAs in the DFW metro have to use ZIP-level payment standards. This was one of the most studied metros in the research behind the policy, because voucher concentration in low-opportunity ZIP codes ran especially high there.

Does Chicago use Small Area FMRs for Section 8?

Yes. Chicago-Joliet-Naperville is a mandatory SAFMR metro. The Chicago Housing Authority and other PHAs in that metro set payment standards by ZIP code rather than one metro-wide figure. It matters a lot in Chicago, where rent variation between ZIP codes runs from under $1,000 to over $2,000 for the same bedroom size.

How often do Small Area FMRs change?

HUD updates SAFMRs annually, usually publishing new figures in late summer or early fall for the fiscal year starting October 1. Your PHA then updates its payment standard schedule, which may not kick in until the next annual cycle or lease renewal. Check HUD's FMR page each fall if you're planning a move or negotiating a new lease.

What happens if my current apartment's ZIP has a lower SAFMR than last year?

If the SAFMR for your ZIP drops, your PHA's payment standard for that ZIP may drop too at your next renewal. You generally get at least 12 months' notice, and PHAs often hold existing tenants harmless until their lease anniversary. Talk to your caseworker well before renewal if your SAFMR fell sharply. You may need a less expensive unit or you'll absorb a larger share of the rent.

Does New York City use Small Area FMRs?

New York City's setup is unusual. NYCHA and associated PHAs run under special rules, including Moving to Work status for some programs. NYC hasn't been on the standard mandatory SAFMR list the same way Dallas or Chicago are, partly because its existing rent structures and local programs already build in a lot of geographic variation. Check NYCHA's current payment standard schedules directly for the current approach.

Are Small Area FMRs the same as Zip Code FMRs?

Effectively yes. HUD uses ZIP Code Tabulation Areas (ZCTAs) as the geographic unit for SAFMRs, and those line up closely with USPS ZIP codes. You'll see the terms used interchangeably in PHA documents, but they point to the same thing: a neighborhood-level rent estimate instead of a metro-wide one.

Can a PHA set payment standards above 110% of the SAFMR?

In tight rental markets or as part of mobility programs, PHAs can request HUD approval for exception payment standards above 110% of FMR, up to 120% or higher with sign-off. Some MTW agencies have even wider flexibility. This is unusual and needs HUD review. It doesn't happen automatically just because a metro is a SAFMR area.

Where can I find the actual SAFMR dollar amounts for my ZIP code?

HUD's official source is huduser.gov under the Fair Market Rents section. Select Small Area FMRs, pick your fiscal year and state, and search by ZIP or metro. The table shows rent limits for 0-bedroom through 4-bedroom units. Your PHA's payment standard is usually a percentage of those numbers, so check your PHA's published schedule too.

Do SAFMRs apply to project-based vouchers as well as tenant-based vouchers?

SAFMR rules are written mainly around tenant-based Housing Choice Vouchers. Project-based vouchers follow different rent reasonableness and payment standard rules tied to the specific property. Still, when PHAs set rent ceilings for project-based voucher contracts in SAFMR metros, the ZIP-level rents usually inform those negotiations. Ask your PHA for specifics on project-based contracts in your area.

Sources

1. HUD USER, Office of Policy Development and Research: Fair Market Rents and Small Area FMRs: HUD publishes ZIP-code-level Small Area FMRs annually, searchable by state, metro, and ZIP code at huduser.gov
2. Code of Federal Regulations, 24 CFR Part 888: Section 8 Housing Assistance Payments Program Fair Market Rents: 24 CFR 888.113 governs Small Area FMR use, including voluntary elections by PHAs outside mandatory metros
3. Federal Register Vol. 81 No. 221: Small Area Fair Market Rents Final Rule (HUD, 2016): HUD's 2016 final rule established mandatory SAFMR metros based on voucher concentration, minimum voucher count, and statistical reliability criteria; HUD stated SAFMRs 'better reflect the cost of renting in specific areas within a metropolitan area'
4. HUD, Moving to Work (MTW) Demonstration Program: The Moving to Work program has allowed some agencies to test place-based rent structures that function similarly to SAFMRs
5. HUD, Housing Choice Voucher Program Guidebook (Payment Standards and Total Tenant Payment): PHAs set payment standards between 90% and 110% of the FMR or SAFMR; a tenant's total payment cannot exceed 40% of monthly adjusted income at initial lease-up
6. Urban Institute: Voucher holders and residential segregation research (2018): Urban Institute research found voucher holders in large metro areas were significantly more concentrated in high-poverty, low-opportunity neighborhoods than the general low-income rental population
7. NYU Furman Center: Small Area Fair Market Rents study of rent changes in designated markets (2015): Furman Center analysis found ZIP-level rents in New York, Dallas, and Chicago deviated from metro FMRs by more than 40% in some neighborhoods; moving to SAFMRs could make higher-opportunity ZIP codes accessible to most voucher holders
8. U.S. District Court for the District of Columbia: Open Communities Alliance et al. v. Carson (2017-2018), reinstating mandatory SAFMRs: A federal court vacated HUD's 2018 suspension of mandatory SAFMRs, ruling HUD had not followed proper notice-and-comment procedures; mandatory SAFMRs were reinstated
9. HUD, Housing Choice Voucher Program: Portability: When a voucher is ported, the receiving PHA's payment standards and FMR rules apply once it absorbs the voucher or bills the initial PHA
10. HUD USER, FY2024 Small Area FMRs by Metro and ZIP: HUD's annual SAFMR tables show ZIP-level rent estimates for bedroom sizes 0 through 4, updated each fiscal year starting October 1