HUD Updates Fair Market Rents for Fiscal Year 2024

September 18, 2023

HUD is required by law to set Fair Market Rents (FMRs) every year. They represent HUD’s best effort to estimate the 40th percentile gross rent paid by recent movers into standard quality units in each FMR area. With the latest release, FMRs will increase by an average of approximately 12 percent nationally for FY24, and many metro areas with recent significant rent increases will have large increases to FMRs.

HUD is required by law to set Fair Market Rents (FMRs) every year. They represent HUD’s best effort to estimate the 40th percentile gross rent paid by recent movers into standard quality units in each FMR area. With the latest release, FMRs will increase by an average of approximately 12 percent nationally for FY24, and many metro areas with recent significant rent increases will have large increases to FMRs.

The FMRs go into effect on Oct. 1 and are used in the determination of payment standards for the Housing Choice Voucher (HCV) program. 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 2024 FMRs are available at www.huduser.gov/portal/datasets/fmr.html.

Last year, HUD used private sector data to estimate changes in FMRs to address a temporary data availability challenge and to align with market conditions. The COVID-19 pandemic caused significant interruptions in the public data sources that HUD has traditionally used to set FMRs. To address these issues, HUD supplemented public data with data from private sources to ensure the accuracy of the FY23 FMRs. For this latest update, HUD continues to incorporate private data, from companies like Zillow and Apartment List, into its datasets.

 

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