Fair market rents (FMRs) for fiscal 2024 will increase an average of approximately 12% in fiscal 2024, increasing the number of units that families with housing vouchers can access, announced the Department of Housing and Urban Development (HUD).
"Increases in fair market rents help families find homes of their choosing in competitive housing markets,” said Solomon Greene, principal deputy assistant secretary for policy development and research at HUD. “This year, we are continuing improvements we made last year to how we calculate fair market rents to make sure they are keeping up with rising rents. We’ve already seen these improvements help more voucher holders find housing that is affordable, and we expect these new updates will help even more families."
HUD is required by law to set FMRs every year, which go into effect Oct. 1. FMRs are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40% of the rental housing units in an area. They are used in several HUD programs, including determining the maximum amount a Housing Choice Voucher will cover.
Many metro areas with significant rent increases recently will have large increases to FMRs—for example, 21% in Miami and 19% in Denver.
The latest update is on top of an approximately 10% increase in fiscal 2023.
In another move, HUD released an additional $113 million in Housing Choice Vouchers to 118 public housing agencies to help 9,500 families.
"Housing choice vouchers are some of the strongest tools we have to help families find stable and affordable housing," said HUD secretary Marcia L. Fudge. "This year, HUD found that rents rose once again, accentuating the strain on costs for American families. These updated Fair Market Rents and our funding will ensure households can utilize vouchers in a competitive rental market."