Fair Market Rent (FMR)
Fair Market Rent is the average rent (including utilities) being charged in a community for safe, clean, modest apartments. In the HCV program, the FMR is the basis for determining the ‘‘payment standard amount’’ used to calculate the maximum monthly subsidy for an assisted family
In general, the FMR for an area is the amount that would be needed to pay the gross rent (shelter rent plus utilities) of privately owned, decent, and safe rental housing of a modest (nonluxury) nature with suitable amenities. In addition, all rents subsidized under the HCV program must meet reasonable rent standards.
At least once a year, HUD publishes in the Federal Register the FMR for different geographic areas.
The FMR for Jefferson Parish is found in the FMR for the New Orleans-Metairie-Kenner Metropolitan Statistical Area (MSA), which includes the parishes of Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, and St. Tammany
The PHA then determines a Payment Standard that is the amount generally needed to rent a moderately-priced dwelling unit in the local housing market and that is used to calculate the amount of housing assistance a family will receive. This Payment Standard is based off of the Fair Market Rents, generally ranging from 90-110% of Fair Market Rent. However the payment standard does not limit and does not affect the amount of rent a landlord may charge or the family may pay. A family which receives a housing voucher can select a unit with a rent that is below or above the payment standard.
Current FMR, effective July 1, 2014 for FY 2014 for Housing Program of Jefferson Parish:
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