Fair Market Rent (FMR)

What is FMR? (§ 578.49(b)(2))

FMRs are HUD-established estimates of gross rent, taking into account both rent and the cost of necessary utilities. They are based on a standard calculation, updated annually and are published online on HUDUser.gov. Recipients and subrecipients must use the FMR applicable to the geographic area in which the housing unit is located. If you fund a unit using leasing funds, the amount you pay with CoC Leasing Funds cannot exceed FMR.

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Virtual Binders Glossary

What is the purpose of FMRs?

FMRs exist to ensure that a reasonable supply of adequate but modest rental housing is accessible to program participants. Additionally, FMRs must be high enough to permit a selection of units and neighborhoods, but low enough to maximize the number of low-income individuals and families that can be served.

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Recipients should use the FMR in place at the time the lease is executed to determine the maximum amount of leasing funds that can be used to support the unit and then re-assess each time a new lease is signed.