What is the fair market rent (FMR)?

Fair Market Rent (FMR) is defined as the maximum rent that the Department of Housing and Urban Development (HUD) will allow for a specific size and type of rental unit in a particular area. It is established to ensure that rental prices are fair and reflect the median rent levels in the market, while also encouraging landlords to participate in the Housing Choice Voucher program. FMRs are determined based on various factors, including local housing costs and market conditions, and are updated regularly to align with current economic situations.

This figure is crucial for tenants who receive housing assistance because it determines the maximum amount of subsidy that can be provided to support their housing costs. The FMR is not a rate that landlords must charge, nor is it a minimum rent or an average rent in the neighborhood; rather, it serves as a benchmark that balances affordability for tenants and fair compensation for landlords.