On August 14, HUD published the Fair Market Rents (FMRs) for Fiscal Year 2025, which will take effect on October 1, 2024. Fair Market Rents (FMRs) are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40 percent of the rental housing units in an area. FMRs are used in several HUD programs, including determining the maximum amount that a Housing Choice Voucher will cover.
The updated FMRs include Small Area Fair Market Rents (SAFMRs) for both metropolitan and non-metropolitan areas, reflecting local market conditions more accurately. Public Housing Agencies (PHAs) will now use an initial income eligibility threshold of 80% of Area Median Income (AMI) for FMRs, up from 50% previously. This adjustment aims to better align with current housing markets.
Interested parties have until October 1, 2024, to submit comments or requests for reevaluation of specific FMR areas. If no valid requests are received, the FMRs will be implemented as published. The notice detailing these changes is available in the Federal Register and can be reviewed here.
For additional details and to access the FY25 FMRs, visit the HUD User website.