What are Fair Market Rents (FMRs) and how are they used to set payment standards in the housing choice voucher (HCV) program?
FMRs are gross rent estimates. They include the shelter rent plus the cost of all utilities, except telephone and cable. The PHA may establish the payment standard amount for a unit size at any level between 90 percent and 110 percent of the published FMR for that unit size (24 CFR 982.503(b)). PHAs may set them higher or lower with HUD approval. For more information on FMRs and payment standard schedules, see 24 CFR 982.503. 55. Question: If the payment standard increases or decreases during the housing assistance payment (HAP) contract, are PHAs required to adjust the family’s rent at that time, using the higher or lower payment standard? Answer: As defined in 24 CFR 982.505, if the payment standard amount increases during the term of the HAP contract, the increased payment standard amount shall be used to calculate the monthly HAP for the family beginning at the effective date of the family’s first annual reexamination on or after the effective date of the increase in the payment st
