WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) published Fair Market Rents (FMRs) for the Fiscal Year 2023. 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. Nationally, FMRs will increase by an average of approximately 10 percent, enabling more households with housing vouchers to access affordable, stable housing. For FY23, HUD uses private sector data to estimate changes in FMRs to address a temporary data availability challenge and align with market conditions. The basic methodology that HUD uses to estimate FMRs remains the same.
Because rents have risen so quickly recently, voucher holders are increasingly unable to find units available to rent within HUD payment standards. The new FMR levels will enable the voucher program to keep up with rent increases in the private market. These new FMRs will allow voucher holders to access and secure leases in more units to benefit from the housing affordability and stability that vouchers provide.
HUD is required by law to set FMRs every year. FMRs, which go into effect on October 1, are used in several HUD programs, including determining the maximum amount that a Housing Choice Voucher will cover. Click here to view the FY23 FMRs. A fact sheet on the FY23 FMRs is available here.