How Fair Market Rent affects your Section 8 voucher
Your housing authority turns the Fair Market Rent into a payment standard, normally between 90% and 110% of the FMR for the unit size on your voucher. If the rent plus utilities of the home you choose is at or below the payment standard, you pay about 30% of your adjusted monthly income. If it is higher, you pay the difference too, but when you first move in your share cannot exceed 40% of your adjusted income.
That is why two families with the same income pay different amounts: it depends on the unit's rent and the local payment standard. See a worked example.
Fair Market Rents in the largest metro areas
| Area | 1 bedroom | 2 bedrooms | 3 bedrooms | Housing authority |
|---|---|---|---|---|
| New York, NY HUD Metro FMR Area | $2,729 | $2,971 | $3,760 | New York City Housing Authority |
| Chicago-Joliet-Naperville, IL HUD Metro FMR Area | $1,780 | $2,011 | $2,586 | Chicago Housing Authority |
| San Juan-Guaynabo, PR HUD Metro FMR Area | $604 | $706 | $920 | Puerto Rico Public Housing Administration |
| Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area | $2,402 | $2,964 | $3,760 | Housing Authority of the City of Los Angeles |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA | $1,558 | $1,860 | $2,216 | Philadelphia Housing Authority |
| Lansing-East Lansing, MI MSA | $1,054 | $1,323 | $1,685 | Michigan State Housing Development Authority |
| Baltimore-Columbia-Towson, MD MSA | $1,625 | $2,006 | $2,509 | Housing Authority Of Baltimore City |
| Miami-Miami Beach-Kendall, FL HUD Metro FMR Area | $2,121 | $2,564 | $3,277 | Miami Dade Housing and Community Dev |
| Atlanta-Sandy Springs-Roswell, GA HUD Metro FMR Area | $1,619 | $1,762 | $2,099 | Housing Authority of the City of Atlanta |
| Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area | $2,518 | $3,008 | $3,584 | Boston Housing Authority |
| Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area | $2,204 | $2,438 | $3,107 | D.C Housing Authority |
| Trenton-Princeton, NJ MSA | $1,764 | $2,242 | $2,741 | State of Nj Dept. of Comm. Affairs |
| Dallas, TX HUD Metro FMR Area | $1,536 | $1,807 | $2,275 | Housing Authority of the City of Dallas |
| New Orleans-Metairie, LA HUD Metro FMR Area | $1,229 | $1,480 | $1,900 | Housing Authority of New Orleans |
| San Antonio-New Braunfels, TX HUD Metro FMR Area | $1,196 | $1,441 | $1,864 | San Antonio Housing Authority |
Frequently asked questions
What is Fair Market Rent?
HUD's estimate of the gross rent (rent plus utilities) of a modest, decent rental unit in an area, usually the 40th percentile of recent rents. It is published every year for each metro area and non-metro county.
Is Fair Market Rent the maximum Section 8 will pay?
Not exactly. Each housing authority sets a payment standard between 90% and 110% of the Fair Market Rent (or with HUD approval outside that range). The voucher covers up to the payment standard minus your share, which is about 30% of your adjusted income.
When do the FY2027 Fair Market Rents apply?
They took effect on October 1, 2026. If an agency's payment standard ends up outside 90% to 110% of the new FMR, it has three months to adjust it.
What are Small Area Fair Market Rents?
In some metro areas HUD publishes rents by ZIP code instead of one figure for the whole metro, so vouchers go further in higher-cost neighborhoods. Ask your housing authority if it uses them.
Related
Source: HUD USER, FY2027 Fair Market Rents. Independent tool, not affiliated with HUD.