The Department of Housing and Urban Development (HUD) published its Fair Market Rents (FMRs) for fiscal year 2024 (FY24), which begins October 1, 2023. FMRs will increase by an average of approximately 12% nationally for FY24. Many metro areas with recent significant rent increases will have large increases to FMRs—for example, 21% in Miami and 19% in Denver.

HUD’s FMR calculations represent HUD’s best effort to estimate the 40th percentile gross rent paid by recent movers into standard quality units in each FMR area.

Many HUD programs rely on FMRs, which are updated annually. The local value Housing Choice Vouchers, the nation’s largest HUD housing assistance program, is based on HUD FMRs. FMRs also determine renewal rents for some expiring project-based Section 8 projects as well as projects that convert to the Section 8 platform through the Rental Assistance Demonstration.

Additionally, FMRs determine initial rent ceilings in HUD’s HOME program and figure into the calculation of maximum award amounts for Continuum of Care recipients and determine flat rents in public housing. FMRs also impact the income limits used both for determining who qualifies to live in Low Income Housing Tax Credit and residential rental tax-exempt private activity bond-financed housing and how much residents pay to rent those homes in high housing cost areas.

In fiscal year 2023, FMRs increased an average of 10% from fiscal year 2022 FMRs. As it did for the FY23 FMRs, HUD continues to incorporate private data, from companies like Zillow and Apartment List, into its determination of FMRs for FY24.