What does FMR stand for in the context of HCV?

Fair Market Rent (FMR) is a crucial concept within the Housing Choice Voucher (HCV) program. It refers to the rental amount that is determined by the U.S. Department of Housing and Urban Development (HUD), which is essential for various housing assistance programs. FMR is used to establish the maximum rent subsidy that a housing authority can allocate for a unit rented under the HCV program. This ensures that the rent charged by landlords is reasonable in comparison to the rental market in a given area.

FMR is calculated based on the 40th percentile of rent for standard-quality housing units in a specific area, meaning that 40% of the rental units in that area have rent costs below this designated level. This helps to effectively assist low-income families in affording housing in their local communities while also providing a mechanism for landlords to receive a fair return on their investment.

Understanding FMR is fundamental for HCV specialists, as it affects how participant families can choose their housing and how much support they receive from housing authorities to cover rent.