Fair Market Rent (FMR) — Definition and What It Means for Your Income
HUD's estimate of typical rent for modest housing in a given area, used for housing assistance programs.
Fair Market Rent (FMR) is published annually by the U.S. Department of Housing and Urban Development (HUD) and represents the 40th percentile of gross rents for standard-quality units in a given metro area. It's used to set payment standards for housing voucher programs.
Why it matters
FMR provides a standardized, government-verified benchmark for comparing housing costs across cities — more consistent than self-reported rental listing data.
Example
HUD's FY2026 FMR for a 1-bedroom apartment in Austin might be $1,500, while the FMR for a 1-bedroom in San Francisco might be $2,800 — reflecting the dramatic difference in housing markets.
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Fair Market Rent (FMR) — FAQ
Is FMR the same as average rent?
Not exactly. FMR represents the 40th percentile of rents, so it tends to be slightly below the average market rate, representing modestly priced but adequate housing.