Small Area Fair Market Rents

On November 16, 2016, HUD published the Small Area Fair Market Rent (FMR) Final Rule. The rule provides that in lieu of determining Housing Choice Voucher (HCV) payment standards using a metropolitan area-wide FMR, payment standards will use FMRs calculated for ZIP codes within metropolitan areas. The metropolitan areas identified to use ZIP code-based FMRs are those metropolitan areas with both significant voucher concentration challenges and market conditions where establishing FMRs by ZIP code areas has the potential to significantly increase opportunities for voucher families. The use of Small Area FMRs is expected to give HCV tenants access to areas of high opportunity and lower poverty areas by providing a subsidy that is adequate to cover rents in those areas, thereby reducing the number of voucher families that reside in areas of high poverty concentration. This page contains information to support the implementation of Small Area FMRs.