HUD Drops FY 2027 Fair Market Rents for Vouchers
Published Date: 9/1/2026
Notice
Summary
HUD is required 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 lists the procedures for public housing agencies (PHAs) to request reevaluations of their FMRs as required by the Housing Opportunity Through Modernization Act of 2016 (HOTMA).
Analyzed Economic Effects
7 provisions identified: 4 benefits, 1 costs, 2 mixed.
FMRs Drive Multiple Program Subsidies
HUD uses FMRs to set voucher payment standards and to determine rents and ceilings for many programs, including Renewal Funding Inflation Factors, project-based Section 8 renewals, Moderate Rehabilitation SRO, HOME, Emergency Solutions Grants, Continuum of Care, public housing flat rents, and certain Multifamily fees.
FY2027 FMRs Effective Oct 1, 2026
HUD published the FY 2027 fair market rents (FMRs) that will become effective on October 1, 2026. You (or your housing agency) can submit comments by October 1, 2026 and may request a reevaluation of specific area FMRs following the procedures in this notice.
Minimum Two-Bedroom FMR Floor
HUD requires every area's two-bedroom FMR to be at least the applicable minimum, which is the lower of the State or national non-metropolitan median. For FY 2027, the national non-metropolitan median two-bedroom FMR is $1,014.
Limit on Annual FMR Decreases (90% Floor)
An area's current-year FMR may not be less than 90 percent of the prior year's FMR for the same bedroom size. Small Area FMRs are also subject to this 10% annual-decrease limit in the ways described in the notice.
Higher FMRs for Large Households
HUD increases FMRs for larger units: it adds 8.7% to unadjusted three-bedroom FMRs and 7.7% to unadjusted four-bedroom FMRs. For units with more than four bedrooms, HUD adds 15% to the four-bedroom FMR for each extra bedroom (for example, five-bedroom = 1.15 × four-bedroom FMR).
Small Area FMR Caps and Mandatory Use
Small Area FMRs (SAFMRs) remain limited so a two-bedroom SAFMR cannot exceed 150 percent of the metropolitan or non-metropolitan area two-bedroom FMR. HUD also continues to require PHAs in specified metropolitan areas to use SAFMRs when administrating the voucher program.
Reevaluation Process, Deadlines, and Survey Requirements
PHAs and other parties can request FMR reevaluations: comments are due by October 1, 2026; requestors must submit data newer than the 2024 ACS and deliver reevaluation data to HUD by January 8, 2027; HUD will post revised FMRs in April 2027. HUD recommends sample sizes of 200–300 units in large metropolitan areas and 100 eligible responses in non-metropolitan areas for surveys supporting reevaluation requests.
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