HUD Publishes 2026 FMRs
By: Tushar Gurjal, Senior Policy Manager
September 8, 2025 – On August 22, HUD published Fair Market Rents and announced them in a notice in the Federal Register titled “Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy, and Other Programs Fiscal Year 2026.” The published Fair Market Rents (FMRs) will become effective on October 1, 2025 though PHAs will have another 3 months to adjust their payment standards. Housing agencies may also submit FMR reevaluation requests if they believe their FMR is inaccurate if they provide suitable data by January 9, 2026.
The methodology for calculating FMRs remains mostly unchanged from last year, though there have been some changes in how HUD defines HUD Metropolitan Fair Market Rent Areas (HMFAs) in Connecticut and Puerto Rico. The use of HUD Metropolitan Fair Market Rent Areas is meant to “minimize volatility in the year to year change in FMRs . . . .” Other than this change, the methodology for the calculation of FMRs remains unchanged since FY 2024, when HUD previously made methodological changes.
The notice states some minor changes in Maryland and Connecticut about which areas are required to mandatorily implement Small Area FMRs (i.e., fair market rents calculated over a zip code).
Additionally, the Department is proposing to use a new calculation for the FY 2027 utility inflation factor. This is because the Bureau of Labor Statistics has previously noted that it would discontinue the Consumer Price Index (CPI) fuels and utilities data at the metropolitan area and regional levels starting in January 2025. This would impact “ . . . HUD’s ability to inflate ACS [American Community Survey] gross rents for FY 2027 FMRs which would rely on the 2024 to 2025 increase in the index.” The Department has published hypothetical FY 2026 FMRs based on this new utility inflation factor to compare with normal FY 2026 FMRs. The average difference between the two sets of FMRs is $5.
Finally, the notice discusses the process by which PHAs can request FMR reevaluations. The notice also advises PHAs that ” . . . FMRs are also an underlying component of their annual HCV Renewal Funding Inflation Factors (RFIFs), and potential concerns regarding the adequacy of the RFIF are an important consideration when determining whether to request an FMR Re-evaluation.”
The FMR methodology can be found here.
The actual FMRs may be found here.