HUD Updates Fair Market Rents for FY 2027

CARH’S BROADCAST E-MAIL – Regulatory Update

September 1, 2026

The Department of Housing and Urban Development (HUD) published a Notice in today’s Federal Register for the Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs; Fiscal Year 2027.

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.

Click here to go directly to the FMRs on the HUD User website. The FMRs are effective October 1, 2026, unless HUD receives a request for re-evaluation of a specific area as provided in the Notice.

Section 8(c)(1) of the United States Housing Act of 1937 (USHA), as amended by the Housing Opportunities Through Modernization Act of 2016 (HOTMA), requires the Secretary to publish FMRs not less than annually, adjusted to be effective on October 1 of each year. This notice describes the methods used to calculate the FY 2027 FMRs and enumerates the procedures for Public Housing Agencies (PHAs) and other interested parties to request reevaluations of their FMRs as required by HOTMA.

These FMRs in the Notice are used to determine payment standard amounts for the Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program (Mod Rehab), rent ceilings for rental units in both the HOME Investment Partnerships program and the Emergency Solutions Grants program, maximum award amounts for Continuum of Care recipients and the maximum amount of rent a recipient may pay for property leased with Continuum of Care funds, and flat rents in Public Housing units.

\The 2027 Small Area FMRs can be found here. Small Area FMRs are calculated for ZIP Codes. Small Area FMRs are required to be used to set Section 8 Housing Choice Voucher payment standards in areas designated by HUD (available here). Other Housing Agencies operating in non-designated metropolitan areas or non-metropolitan counties may opt-in to the use of Small Area FMRs. Furthermore, Small Area FMRs may be used as the basis for setting Exception Payment Standards – PHAs may set exception payment standards up to 110 percent of the Small Area FMR. PHAs administering Public Housing units may use Small Area FMRs as an alternative to metropolitan area-wide FMRs when calculating Flat Rents. Please See HUD’s Small Area FMR Final Rule for additional information regarding the uses of Small Area FMRs.

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website, www.carh.org.