HUD Publishes Fair Market Rents for Fiscal Year 2025

The FMRs go into effect on Oct. 1

HUD is required by law to set Fair Market Rents (FMRs) every year. In general, the FMR for an area is the amount that a tenant would need to pay the gross rent (rent plus utilities) of privately owned, decent, and safe rental housing of a modest (non-luxury) nature with suitable amenities. The published FMRs represent HUD’s best effort to estimate the 40th percentile gross rent paid by recent movers into standard quality units in each FMR area.

For 2025, HUD updated the methodology for calculating FMRs using the most recent data from the American Community Survey (ACS). These adjustments ensure that FMRs reflect current market conditions more accurately, benefiting residents and property owners alike. Also, HUD expanded the use of Small Area Fair Market Rents (SAFMRs) to additional metropolitan areas. SAFMRs focus on ZIP Code-level data to better capture variations within metropolitan areas.

The FMRs go into effect on Oct. 1, but PHAs have three months to adjust their payment standards. The figures are used in several HUD programs, including determining the maximum amount that a Housing Choice Voucher will cover. They are also used to determine renewal rents for some expiring project-based Section 8 projects as well as projects that convert to the Section 8 platform through the Rental Assistance Demonstration and rent ceilings for the HOME Investment Partnerships program and the Emergency Solutions Grants program. They’re also used to calculate flat rents in public housing.

The FY 2025 FMRs are available at www.huduser.gov/portal/datasets/fmr.html.