Policy Brief: The Small Area FMR Demonstration

Peter B. Kahn, Geoffrey B. Newton, U.S. Department of Housing and Urban Development

Fair Market Rents (FMRs) are used to define payment standards that govern the amount of assistance that Housing Choice Voucher Program (HCVP) participants receive. The U.S. Department of Housing and Urban Development (HUD) currently publishes a single FMR for each HUD metropolitan FMR area. To provide program participants with wider access to opportunity areas, the Department developed Small Area Fair Market Rents (SAFMRs). SAFMRs represent a fundamentally different way of operating the HCVP in metropolitan areas; therefore, HUD is testing SAFMRs through a demonstration program to better understand the programmatic effects.