HUD Updated Rent Benchmarks Across the Country for 2027
The U.S. Department of Housing and Urban Development has released its Fiscal Year 2027 Fair Market Rents, bringing updated rent benchmarks to communities across the country.
The new amounts are scheduled to take effect October 1, 2026.
For many areas, HUD’s 2027 rent benchmarks are higher than they were in 2026. In hundreds of other areas, they are lower.
That does not mean everyone’s rent is changing.
Fair Market Rents, often called FMRs, are federal rent benchmarks used in housing programs such as the Housing Choice Voucher program, commonly known as Section 8.
The amount someone pays in rent or receives through a housing program depends on several factors. A change in the local FMR does not automatically create the same change in a household’s rent or housing assistance.
Still, the 2027 update is important because these numbers help shape housing-program payment standards across the country.
What Is Fair Market Rent?
Every year, HUD estimates the cost of renting a modest home in different parts of the country.
These estimates are called Fair Market Rents.
HUD generally bases the calculation around rent paid for standard-quality housing by recent movers in a local market. The amount includes rent plus certain tenant-paid utilities.
HUD publishes different amounts based on the size of the home:
- Studio
- 1 bedroom
- 2 bedrooms
- 3 bedrooms
- 4 bedrooms
There is no single nationwide Fair Market Rent amount.
The number can vary greatly depending on where someone lives.
A two-bedroom apartment in California may have a much higher HUD benchmark than a two-bedroom apartment in Missouri or Mississippi.
Most Areas Increased for 2027
A comparison of HUD’s FY2026 and FY2027 two-bedroom Fair Market Rent data shows that increases were much more common than decreases.
2027 Fair Market Rent Changes
| Direction | Number of Areas | Share of Comparable Areas |
| Increased | 2,136 | 82.0% |
| Decreased | 466 | 17.9% |
| No Change | 4 | 0.2% |
| Total | 2,606 | 100% |
The typical geographic area saw its two-bedroom FMR increase by about 4.2%.
That does not mean rents increased 4.2% for every household.
It means HUD’s federal rent benchmark increased by roughly that amount in the typical area.
Some Areas Had Much Larger Increases
Although many changes were fairly modest, some communities saw double-digit increases in their two-bedroom Fair Market Rent.
Examples of Larger FY2027 Increases
| Area | FY2026 2BR FMR | FY2027 2BR FMR | Change |
| Jackson County, Colorado | $989 | $1,485 | +50.2% |
| Grant County, South Dakota | $929 | $1,179 | +26.9% |
| Mountrail County, North Dakota | $1,071 | $1,356 | +26.6% |
| St. James Parish, Louisiana | $921 | $1,165 | +26.5% |
| Hattiesburg, Mississippi | $1,047 | $1,316 | +25.7% |
| Grand County, Colorado | $1,475 | $1,844 | +25.0% |
| Joplin, Missouri | $947 | $1,153 | +21.8% |
| Napa, California | $2,773 | $3,375 | +21.7% |
| Asheville, North Carolina | $1,567 | $1,866 | +19.1% |
| Fayetteville, North Carolina | $1,251 | $1,476 | +18.0% |
| Port St. Lucie, Florida | $1,757 | $2,069 | +17.8% |
The largest changes tended to be concentrated in specific local markets rather than spread evenly across the country.
That is why looking at a national average may not tell someone very much about what changed where they live.
Hundreds of Areas Went Down
The 2027 update was not a nationwide increase.
HUD’s two-bedroom Fair Market Rent decreased in 466 areas.
Several large metropolitan markets were included in that group.
Examples of FY2027 FMR Decreases
| Area | Approx. Change |
| Flagstaff, Arizona | -10.0% |
| Yuma, Arizona | -10.0% |
| Lake Havasu City-Kingman, Arizona | -10.0% |
| Monroe County, Florida | -10.0% |
| Ventura/Oxnard, California | -10.0% |
| Dallas HUD Metro Area, Texas | -6.4% |
| San Jose-Sunnyvale-Santa Clara, California | -6.1% |
| San Diego-Chula Vista-Carlsbad, California | -5.9% |
| Phoenix-Mesa-Chandler, Arizona | -5.7% |
| Santa Ana-Anaheim-Irvine, California | -5.5% |
| Houston-The Woodlands-Sugar Land, Texas | -4.8% |
| Yakima, Washington | -4.4% |
| Atlanta-Sandy Springs-Roswell, Georgia | -3.2% |
| Tampa-St. Petersburg-Clearwater, Florida | -3.0% |
These numbers show why it would be misleading to describe the 2027 HUD release simply as a rent increase.
The direction of the change depends on the local market.
Phoenix Shows How the Numbers Can Change
Phoenix is a good example because HUD’s benchmark decreased across several unit sizes.
Phoenix-Mesa-Chandler FMR Comparison
| Unit Size | FY2026 | FY2027 | Change |
| Studio | $1,457 | $1,390 | -4.6% |
| 1 Bedroom | $1,583 | $1,493 | -5.7% |
| 2 Bedrooms | $1,839 | $1,734 | -5.7% |
| 3 Bedrooms | $2,452 | $2,287 | -6.7% |
| 4 Bedrooms | $2,720 | $2,537 | -6.7% |
For a two-bedroom unit, the published FMR fell from $1,839 to $1,734.
That is a difference of $105 per month.
Again, this does not mean every Phoenix renter will pay $105 less. It means HUD’s housing-program benchmark for that unit size decreased by that amount.
Why Do HUD Rent Amounts Change?
HUD updates Fair Market Rents every year because rental markets change.
Rent levels can rise faster in one area than another. Some markets may slow down, while others experience stronger increases.
HUD uses housing and economic data to estimate current rental costs and then applies adjustments designed to bring those figures closer to the upcoming fiscal year.
Because each housing market behaves differently, those updates can produce very different results from one part of the country to another.
HUD Limits How Far an FMR Can Fall
There is another important rule behind the decreases.
HUD generally prevents a published Fair Market Rent from falling below 90% of the previous year’s amount for the same unit size.
In simple terms, HUD generally limits the annual decrease to about 10%.
That is why several markets in the decrease table show exactly a 10% decline.
Example of the FMR Floor
| Prior-Year FMR | 90% Floor | Lowest Typical New FMR |
| $1,000 | $900 | $900 |
| $1,500 | $1,350 | $1,350 |
| $2,000 | $1,800 | $1,800 |
| $2,500 | $2,250 | $2,250 |
This does not mean market rents only fell 10%.
It means HUD’s published benchmark is generally prevented from dropping by more than that amount in a single year.
What Does This Mean for Section 8?
Fair Market Rents are important to the Housing Choice Voucher program, but they are not the same thing as a household’s voucher amount.
Local Public Housing Agencies use FMRs when setting payment standards.
Those payment standards are then used as part of the calculation for housing assistance.
Several other factors may matter, including:
- Household income
- Number of people in the household
- Bedroom size
- Local payment standards
- Unit rent
- Utility allowances
- Local housing-agency policies
That means someone living in an area with a 10% FMR increase should not assume that his or her housing assistance will automatically rise 10%.
The new FMR is one part of a larger calculation.
Higher FMR Does Not Mean Your Rent Is Going Up
A higher 2027 Fair Market Rent does not mean:
- Your landlord must raise your rent
- Your lease automatically changes
- Your voucher automatically increases
- You automatically receive additional housing assistance
A lower FMR also does not necessarily mean:
- Your landlord must reduce your rent
- Your housing assistance immediately drops
- Your voucher is automatically reduced by the same percentage
FMRs are federal housing benchmarks.
They influence housing programs, but they do not directly control what every renter pays.
Some Areas Use ZIP-Code-Level Rent Amounts
In certain metropolitan areas, HUD uses Small Area Fair Market Rents, often called SAFMRs.
Instead of using one rent benchmark across an entire metropolitan area, Small Area FMRs can vary by ZIP code.
That means two households in the same larger metro area could potentially be connected to different HUD rent benchmarks depending on ZIP code.
Standard FMR vs. Small Area FMR
| Standard FMR | Small Area FMR |
| Based on a larger metro or county area | Based on ZIP code |
| Same benchmark across a larger area | Can vary within the same metro |
| Used in many HUD programs | Used for voucher payment standards in certain areas |
| Updated annually | Updated annually |
Check The 2027 Fair Market Rent Rates
Because Fair Market Rents vary by location, the best way to see the complete 2027 numbers is through HUD’s official Fair Market Rent tools.
Search HUD Fair Market Rents by Area
HUD’s main Fair Market Rent database lets users search published FMRs by state, county, metropolitan area, and bedroom size.
This is the best starting point for someone who wants to find the standard Fair Market Rent for their area. HUD publishes FMRs for metropolitan areas and nonmetropolitan counties and makes the data available for download as well.
Search ZIP-Code-Level Small Area Fair Market Rents
For locations that use Small Area Fair Market Rents, HUD provides a separate database with ZIP-code-level rent amounts.
Search HUD Small Area Fair Market Rents by ZIP Code
Small Area FMRs are particularly useful for Housing Choice Voucher users in areas where payment standards vary within the same metropolitan market. HUD makes Small Area FMR information available for metropolitan and nonmetropolitan areas.
Download the Full HUD Data
Users who want to compare many locations at once can also access the downloadable files from HUD’s main FMR database.
View and Download HUD Fair Market Rent Data
The downloadable data is useful for comparing:
- Multiple states
- Counties
- Metropolitan areas
- Bedroom sizes
- Current and prior fiscal years
HUD states that its FMR data is made available for download through HUD USER.
When Do the 2027 Numbers Take Effect?
The new FY2027 Fair Market Rents are scheduled to take effect:
October 1, 2026
That date marks the beginning of the federal government’s 2027 fiscal year.
There can be exceptions.
Local housing agencies may request that HUD reevaluate a Fair Market Rent if they believe the published number does not accurately reflect local conditions. When HUD receives a valid reevaluation request, the prior-year FMR may remain in effect while the request is reviewed.
How to Check What Changed Where You Live
When reviewing HUD’s database, users should look at four things:
1. Find the Correct Location
Choose the state and the correct county, metropolitan area, or HUD-defined FMR area.
2. Select the Unit Size
Compare the amount for a studio, one-bedroom, two-bedroom, three-bedroom, or four-bedroom unit.
3. Compare FY2026 and FY2027
Looking at both fiscal years makes it easier to see whether the published benchmark increased or decreased.
4. Check Small Area FMRs if Applicable
If the area uses ZIP-code-level Small Area FMRs, check the ZIP code rather than relying only on the larger metropolitan FMR.
2027 HUD Update at a Glance
| 2027 Housing Update | What Happened |
| New FMRs released | Yes |
| Effective date | October 1, 2026 |
| Areas with increases | 2,136 |
| Areas with decreases | 466 |
| Areas unchanged | 4 |
| Typical increase | About 4.2% |
| Largest example increase | 50.2% |
| Typical maximum annual decrease | About 10% |
| Same amount nationwide? | No |
| ZIP-level amounts available? | Yes, through SAFMRs |
| Automatically changes someone’s rent? | No |
| Used for Section 8 calculations? | Yes |
The Bottom Line
HUD’s 2027 housing update brought new rent benchmarks to thousands of communities across the country.
Most areas saw their two-bedroom Fair Market Rent increase, while hundreds saw decreases. Some communities experienced double-digit increases while several major metropolitan areas moved in the opposite direction.
The new numbers generally take effect October 1, 2026.
For people interested in Section 8 or other HUD housing programs, the most useful step is to check the FY2027 Fair Market Rent for the specific area where they live.
Official HUD resources:
The published FMR should be viewed as a federal housing benchmark — not as a guarantee that someone’s rent, voucher amount, or housing assistance will automatically change.
