Quick answerHUD publishes Fair Market Rents (FMRs) each year for every metro area and rural county, and in some metros for each ZIP code. Your housing agency then sets payment standards—usually 90% to 110% of FMR—for each bedroom size. The payment standard is the most the agency’s formula will use to calculate your subsidy; you can rent above it only if your share stays within 40% of adjusted income at move-in. FY 2027 FMRs take effect October 1, 2026.
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Fair Market Rent: HUD’s benchmark

Every year HUD publishes Fair Market Rents for each metropolitan area and nonmetropolitan county. An FMR estimates the gross rent—rent plus basic utilities—for a modest, standard-quality unit of a given bedroom size. In most areas the FMR is set at the 40th percentile of recent-mover rents, meaning about 40% of comparable units rent for less.

FMRs are calculated from Census American Community Survey data, adjusted for inflation and local rent trends. They are published by bedroom size (efficiency through four bedrooms, with formulas for larger units) and take effect October 1, the start of the federal fiscal year. The FY 2027 FMRs were published September 1, 2026.

FMRs are used for more than vouchers. They also set rent ceilings for some HOME-funded units, Continuum of Care rental assistance, and other programs.

Small Area Fair Market Rents

In a large metro area, one FMR can be too low for high-rent neighborhoods and too high for low-rent ones. Small Area FMRs (SAFMRs) are calculated by ZIP code instead.

  • HUD requires SAFMRs in designated metropolitan areas (a list that HUD expanded in 2023).
  • Any agency can choose to adopt SAFMRs voluntarily.
  • Where SAFMRs are used, your payment standard depends on the ZIP code of the unit.

For voucher holders, SAFMRs usually mean more money to rent in neighborhoods with higher rents, and less in lower-rent ZIP codes. If you are searching in an SAFMR area, compare payment standards across ZIP codes before deciding where to look.

Payment standards: your agency’s numbers

Your housing agency turns FMRs into a payment standard schedule: one amount per bedroom size (and, where applicable, per area or ZIP code).

Type Range Approval needed
Basic range 90% to 110% of FMR None; agency decides
Exception payment standard (area) Above 110% of FMR HUD approval, or notice to HUD for 110–120% if the agency meets criteria like low voucher success rates or high rent burdens
ZIP-code exception outside SAFMR areas Up to 110% of the ZIP code’s SAFMR None
Reasonable accommodation (individual family) Up to 120% of FMR None; above 120% needs HUD approval
Below basic range Under 90% of FMR HUD approval, rarely granted

Agencies must adjust their schedules within three months of new FMRs taking effect if needed to stay within the basic range.

How the payment standard affects your rent

The subsidy is calculated from whichever is lower: the payment standard or the unit’s gross rent. Your total tenant payment (about 30% of adjusted income) is subtracted from that amount.

  • Gross rent at or below the payment standard: you pay roughly 30% of adjusted income toward rent and utilities.
  • Gross rent above the payment standard: you pay 30% plus the amount above the standard.
  • At move-in: your share cannot exceed 40% of monthly adjusted income.

The agency uses the payment standard for the smaller of your voucher size or the unit size. See the full formula and a worked example in how Section 8 rent is calculated.

When payment standards change

  • Increases must be applied to your subsidy no later than the earliest of: a rent increase that would raise your share, your next regular or interim reexamination, or one year after the increase took effect. Agencies can apply them sooner.
  • Decreases: the agency may keep using your old, higher standard as long as you stay in the unit. If its policy is to reduce it, the reduction cannot take effect until at least two years after the decrease, and you must get 12 months’ written notice.
  • Voucher size changes (for example, a child moves out) can change the payment standard at your next regular reexamination or sooner.
  1. Get the schedule from your briefing packet or the agency website, including any ZIP-code-level amounts.
  2. Get the utility allowance schedule for the building types you are considering (apartment, townhouse, single-family) and the fuel types (gas vs. electric heat).
  3. Estimate the maximum gross rent you can take: payment standard + (40% of monthly adjusted income − your TTP). Subtract the utility allowance for utilities you would pay to get the approximate maximum contract rent.
  4. Target listings below that amount, and remember the agency must also find the rent reasonable.
  5. Ask about exceptions if a disability limits where you can live (accessibility, proximity to care) and rents there exceed the standard.

Where to look up FMRs

HUD USER’s FMR Documentation System lets you search by state and county (or metro area) and shows FMRs by bedroom size and how they were calculated. The Small Area FMR lookup shows ZIP-code-level values. These are HUD’s benchmarks; your agency’s payment standard schedule is what actually applies to you.

Frequently asked questions

Is the payment standard the maximum rent I can pay?

No. It is the maximum amount used to calculate the subsidy. You can rent a unit whose gross rent is higher, but you pay the difference, the rent must be reasonable, and at move-in your total share cannot exceed 40% of your monthly adjusted income.

Where do I find my agency’s payment standards?

They should be in your briefing packet and are often posted on the agency’s website. Ask for the current schedule by bedroom size and any ZIP-code or neighborhood-specific amounts.

When do new Fair Market Rents take effect?

HUD’s FMRs for a federal fiscal year take effect October 1. The FY 2027 FMRs were published September 1, 2026 and take effect October 1, 2026. Agencies must update payment standards within three months if needed to stay within the 90–110% basic range.

Can the payment standard be higher for a person with a disability?

Yes. As a reasonable accommodation, an agency can approve a payment standard up to 120% of FMR for an individual family without asking HUD, and can ask HUD to approve more than 120%.

Why is the payment standard different in different ZIP codes?

In Small Area FMR areas, HUD sets FMRs by ZIP code so payment standards rise in higher-rent neighborhoods and fall in lower-rent ones. This is meant to help voucher holders reach more neighborhoods.

Sources and verification

Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.

  1. Fair Market RentsHUD USER
  2. Small Area Fair Market RentsHUD USER
  3. 24 CFR 982.503 — Payment standard areas, schedule, and amountsElectronic Code of Federal Regulations
  4. 24 CFR 982.505 — How to calculate housing assistance paymentElectronic Code of Federal Regulations
  5. Fair Market Rents for Fiscal Year 2027 (notice)Federal Register

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Published by Housing Assistance Info

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