On August 14, HUD published a notice in the Federal Register, as required by law, announcing the 2025 Fair Market Rents (FMRs). The primary methodology is unchanged from 2024, when provisions for including private-market data sources were added when available to better reflect local market conditions and is described in detail in the notice. Small Area Fair Market Rent (SAFMR) information is also included, with SAFMRs now calculated for both metropolitan and non-metropolitan areas. The notice can be found here.
Public comments on the methodology used to calculate FMRs, must be submitted to HUD before the October 1, 2024, effective date of the new rates. The FY 25 FMRs for all programs can be found via Fair Market Rents (40th PERCENTILE RENTS).
Requests for reevaluation of an FMR must be submitted 30 days from the date of publication, but HUD may accept requests until the formal end of the comment period of October 1. HUD states that they do not have resources to conduct local surveys or other data gathering for a specific area, but housing authorities can use administrative fees or administrative fee reserves for this purpose. The notice includes detailed information about what must be submitted to enable a reevaluation of the FMR or SAFMR. These requirements mandate submission of data more recent than the 2022 ACS data used by HUD in their calculation.
PHADA will provide additional analysis in an upcoming Advocate and discussion of the issue as needed during the upcoming Legislative Forum. Members with concerns or comments are encouraged to contact individual PHADA staff or email: policy@phada.org.