HUD Publishes Fiscal Year 2023 Fair Market Rents

HUD on Thursday published Fair Market Rents for fiscal year 2023.

Updated annually, FMRs represent HUD’s estimate of what it would cost to cover gross rents (rent and utility expenses) on 40 percent of the rental housing units in an area.

Nationally, FMRs will increase by approximately 10 percent on average, which should enable more households with housing vouchers to access affordable, stable housing, HUD said. For fiscal year 2023, HUD used private sector data to estimate FMR changes to address a temporary data availability challenge and to align with market conditions. The basic methodology that HUD uses to estimate FMRs did not change.

“One of the reasons that housing voucher holders are unable to use those vouchers is because the value of their vouchers has not kept up with rapid rent increases,” said HUD Secretary Marcia L. Fudge. “These new FMRs will make it easier for voucher holders facing this challenge to access affordable housing in most housing markets, while expanding the range of housing opportunities available to households.”

Fudge said the new, higher FMRs reflect the reality of housing unaffordability for many households and support the agency’s efforts to improve housing affordability and accessibility.

HUD noted voucher holders are increasingly struggling to find units available to rent within HUD payment standards because rents have risen so quickly recently. “The new FMR levels announced today will enable the voucher program to keep up with rent increases in the private market,” the agency said in a statement. “These new FMRs will allow voucher holders to access and secure leases in more units so that they can benefit from the housing affordability and stability that vouchers provide.”

New FMRs go into effect on October 1 each year. Several HUD programs including Housing Choice Vouchers use FMR data.

Click here to view the FY23 FMRs or here for a fact sheet about the new FMRs.