Fair market rent (FMR) by city and county, 2026

What fair market rent is

Fair market rent is HUD's estimate of what a modest, standard-quality rental costs in an area, including the rent and the utilities a tenant pays. For most areas it is set at the 40th percentile of recent-mover rents, meaning about 40% of comparable units rent for less.

HUD publishes new FMRs for every metro area and non-metro county each fiscal year, by bedroom count from studios to four bedrooms. Fiscal year 2026 figures took effect on October 1, 2025.

How Section 8 uses fair market rent

Housing authorities use FMR to set payment standards for Housing Choice Vouchers (Section 8), generally between 90% and 110% of FMR. The payment standard caps how much of the rent the voucher will cover, so FMR is a strong signal of the rent a voucher tenant can pay in that area.

Small Area FMR: fair market rent by ZIP code

In some metro areas HUD sets Small Area Fair Market Rents (SAFMRs) by ZIP code, so a voucher in a higher-rent ZIP can pay more than one in a lower-rent ZIP. They are required in some metro areas and optional in others, so check with the local housing authority which applies to your property.

How investors use fair market rent

As a check on your rent estimate. FMR describes a modest unit and includes utilities, so a renovated house can rent above it and a dated one below it. If your projected rent sits far above FMR, confirm it with nearby rental comps before you rely on it.

For a Section 8 strategy. Where FMR is close to or above market rent, voucher tenants can be a stable option worth underwriting.

Keep it out of yield math. FMR comes from HUD and listing prices come from a different source, so dividing one by the other mixes two measures. Use rent comps and the property's price together in the rental property calculator.