Fair Market Rents

Fair Market Rents (FMRs) are essential for setting payment standards in the Housing Choice Voucher program and establishing initial rents for various housing assistance programs, including project-based Section 8 and Mod Rehab. They define rent ceilings in the HOME Investment Partnerships and Emergency Solutions Grants programs and determine maximum rents for Continuum of Care recipients. HUD estimates FMRs annually for metropolitan areas and nonmetropolitan counties, publishing them at least 30 days before their effective date, usually on October 1. FMRs are calculated as estimates of the 40th percentile gross rents for standard quality units in defined areas.