Fair Market Rents

Are families in your area struggling to use their Housing Choice Vouchers because local rents are rising faster than HUD’s Fair Market Rents?
If so, we’d like to help.

HOUSING
& FINANCE

TECHNICAL
ASSISTANCE

AUDITS
& REVIEW

HOUSING POLICY
& RESEARCH

PROGRAM
SUPPORT

ASSET
REPOSITIONING

WHAT ARE FMR SURVEYS?

Fair Market Rents (FMRs) are estimates of gross rent in a local market, which the U.S. Department of Housing and Urban Development (HUD) uses to administer its public and other assisted housing programs. Each year, HUD estimates FMRs for more than 600 metropolitan areas and almost 2,000 nonmetropolitan county areas.

HUD allows public housing authorities (PHAs) and other organizations that operate the Section 8 program to request a reevaluation of their FMRs by conducting a HUD-prescribed local rental housing survey and submitting the data to HUD for review and approval.

DO WE NEED AN FMR SURVEY?

If rents have been rising quickly in your area and you don’t think the FMRs have kept up, you may be a good candidate for an FMR survey.
An FMR survey can help your organization by increasing the subsidy amounts that HUD provides to your eligible residents, which helps your community by giving residents access to homes in areas with more opportunity.

A graphic depicting a home value survey, showcasing data analysis and trends in real estate values.

What can we do if we don’t have the budget to pay for a survey?

If your budget is already committed to other initiatives, you may still be able to share the cost of the survey by teaming with another organization:

Partner with other PHAs in the same FMR area to pay for the survey.
Partner with property owners who would benefit from higher FMRs.
Apply for grants/assistance from local community organizations or nonprofits.

A homebuyer survey form displayed on a wooden table, with a pen and a house key nearby, symbolizing the home buying process

Why should we hire Econometrica to complete our FMR survey?

We completed 50% of all successful FMR reevaluations in the U.S. in 2022, achieving up to a 24% increase in FMRs.
We will help you navigate the entire process and comply with all HUD requirements.
We can complete your FMR survey efficiently because we have already developed tools and processes that have proven successful.

An informative real estate survey highlighting key insights and data for potential buyers and investors.

CASE STUDY: Housing Authority of the City of Asheville, North Carolina

In 2018, the Housing Authority of the City of Asheville, North Carolina, (HACA) sought to examine its annual FMRs, which often fluctuated from year to year and caused rents to be uncompetitive in the local rental market, making it more difficult for program participants to find housing for their families. HACA engaged Econometrica to complete a rental housing survey in its area and produce an FMR survey report.

HACA then used our report and survey data to successfully appeal its FMRs to HUD, which led HUD to increase Asheville’s FY 2020 FMRs by 21 percent. As a result, HACA was able to provide rental subsidies that were competitive in the local market, making it easier for program participants to obtain housing in their community. Perhaps most importantly, participants were now able to find affordable housing in neighborhoods of greater opportunity instead of only having options in areas with higher concentrations of poverty.

Based on this success and Asheville’s ongoing rental market boom, HACA returned to Econometrica to complete another local rental survey. We completed this second survey in December 2021, finding a 16.6-percent increase in rents over the HUD-estimated FMRs.

What is the process?

HUD posts the FMRs each August in the Federal Register (FR).
PHAs must submit a request to appeal within 30 days in the FR (or requests, bids, or proposals).
The PHA issues an RFP/or requests bids for an FMR survey and awards a contract.
Studies can begin between July 1 and October 1.
Studies must be completed by December 31.

Tip box graphic with light bulb about issuing RFP's and awards of contracts.

HOW DO WE LEARN MORE?

To learn more or to begin the FMR Survey process, contact Econometrica at HUDFMR@econometricainc.com. We will run a quick analysis to determine whether you’re a good candidate and guide you through the next steps.

In order to complete the survey by the deadline at the end-of-year, we must have a contract in place by the end of September. Please note that our capacity to complete these studies does fill up, so we encourage you to start this process as soon as possible.

How Econometrica Helps Families and Communities Accurately Determind Rental Housing Costs

How FMRs Are Set

Each year, HUD uses American Community Survey data to set FMRs for 2,600+ areas based on the local base rent, local inflation factor, and local trend factor.

Accurate FMRs

Accurate FMRs help families find and afford housing in areas of greater opportunity!

Rents Rising Too Fast

If local rents rise faster than predicted, families struggle to find housing they can afford with their vouchers.

Our Studies Can Raise FMRs

Econometrica conducts studies for communities that suspect their FMRs are too low. When a survey is successful, HUD raises the FMRs for that area.

Econometrica Can Help

Contact Econometrica today to develop your FMR Survey.

HUDFMR@econometricainc.com

Econometrica has a long track record of completing successful, affordable FMR surveys to help PHAs like yours ease housing struggles in your community.