Effective January 1, 2025, the U.S. Department of Housing and Urban Development (HUD) made an important change to the way the HCV program determines the maximum subsidy for a household. Maximum subsidies must now be based on Fair Market Rents (FMRs) determined at the ZIP code level instead of the broader metropolitan area level. These ZIP code-specific rent estimates are called Small Area Fair Market Rents (SAFMRs).
SAFMRs mean payment standards will now be based on the localized rent for each ZIP code as opposed to typical rent levels across the entire metropolitan area. This change promotes a more effective system that allows HCV-assisted families to access higher-cost housing in low-poverty areas. As a result, the payment standard for units owners rent through the HCV Program may change. Depending on the ZIP code in which a rental unit is located, a tenant’s voucher and payment standard may increase, stay the same, or decrease.
Please view the below documents for additional details about Small Area Fair Market Rents.
The Owner Notification of Program Changes provides an overview of the change to SAFMRs.
Owner FAQs outline how the change to SAFMRs may affect current owners.
The Zip Code Table details subsidies by zip code per bedroom size.
The Hold Harmless form explains how a current tenant’s rent may be affected by SAFMRs.
The New Owner Recruitment form provides the benefits of becoming a landlord on the HCV program.