FMR — Fair Market Rent — is the rent benchmark HUD publishes annually for metropolitan areas and non-metro counties, by unit size. An FMR is a gross rent (contract rent plus tenant-paid utilities) set around the 40th percentile of standard-quality rentals in the area — roughly, a rent slightly below the middle of the local market. FMRs anchor the Housing Choice Voucher program: housing authorities set their payment standards as a percentage of FMR (or of Small Area FMR, where it applies). They are built from survey data and published on HUD's annual cycle, so they lag fast-moving markets.
The formula / structurePayment Standard = FMR × (PHA's chosen percentage, generally 90%–110%) — the FMR itself is HUD's published figure.
FMR: a worked example
Worked example. An example metro FMR for a 2-bedroom is $1,400. The local housing authority sets its payment standard at 100% of FMR → $1,400 gross. A landlord pricing a voucher unit in that area underwrites against $1,400 (minus any utility allowance structure), not against the $1,525 asking rent on a listing site.
What affects FMR
- HUD's annual survey data and publication cycle
- Metro vs. non-metro county definitions
- Bedroom count
- Whether Small Area FMRs replace area-wide FMRs (by zip code)
Get the Section 8 Standards Snapshot — free.
The current payment standards for your market, by bedroom count — the numbers your rent has to fit.