1. What is Fair Market Rent (FMR)?

Fair Market Rent (FMR) is the 40th percentile of gross rents for typical, non-substandard rental units occupied by recent movers in a local housing market. FMRs are set by the U.S. Department of Housing and Urban Development (HUD) and used to determine payment standards for the Housing Choice Voucher (Section 8) program.

2. How Does the Calculator Work?

The calculator estimates the HUD Fair Market Rent for a given zip code and bedroom count:

Key factors:

• Geographic location (zip code)
• Number of bedrooms (0-4)
• Current year FMR data from HUD

Explanation: FMR represents the dollar amount below which 40% of the standard quality rental housing units rent.

3. Importance of FMR Calculation

Details: FMRs are used to determine payment standards for the Housing Choice Voucher program, to calculate initial renewal rents for some expiring project-based Section 8 contracts, and to determine initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program.

4. Using the Calculator

Tips: Enter a valid 5-digit zip code and select the number of bedrooms. The calculator will return the current FMR for that area and unit size.

5. Frequently Asked Questions (FAQ)

Q1: How often are FMRs updated?
A: HUD updates FMRs annually, typically in October, based on data from the American Community Survey.

Q2: What's the difference between FMR and payment standard?
A: FMR is the reference point, while payment standard is the maximum subsidy a housing agency can pay (usually 90-110% of FMR).

Q3: Can I use this for any rental unit?
A: FMR applies to standard quality units. Luxury units or those with special amenities may exceed FMR.

Q4: Why does bedroom count affect FMR?
A: Larger units (more bedrooms) typically command higher rents in the market.

Q5: Where can I find official FMR data?
A: HUD publishes complete FMR datasets at huduser.gov.