24 C.F.R. § 888.111
§ 888.111 Fair market rents for existing housing: Applicability. (24 CFR Part 888)
Operative Text
(a) The fair market rents (FMRs) for existing housing are determined by HUD and are used in the Section 8 Housing Choice Voucher program (HCV program) (part 982 of this title), Section 8 project-based assistance programs and other programs requiring their use. In the HCV program, the FMRs are used to determine payment standard schedules. In the Section 8 project-based assistance programs, the FMRs are used to determine the maximum initial rent (at the beginning of the term of a housing assistance payments contract). (b) Fair market rent means the rent, including the cost of utilities (except telephone), as established by HUD, pursuant to this subpart, for units of varying sizes (by number of bedrooms), that must be paid in the market area to rent privately owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable amenities.
Under 24 CFR Part 888 § 888.111, HUD establishes Fair Market Rents (FMRs) as standardized rent benchmarks that reflect what a tenant would typically need to pay in a given market area to secure modest, non-luxury rental housing meeting basic safety and sanitary standards. FMRs cover units of varying bedroom sizes and include utility costs other than telephone. These figures are used across multiple federal housing programs, most notably to set payment standard schedules in the Section 8 Housing Choice Voucher program and to cap initial rents in Section 8 project-based assistance contracts.
Plain English — not legal advice.
Property owners and managers participating in HUD-assisted programs should be aware that 24 CFR Part 888 § 888.111 establishes FMRs as a foundational benchmark governing how much assistance can flow toward a unit's rent. In the Housing Choice Voucher program, a compliant operator generally understands that the local payment standard — derived from the FMR — shapes the subsidy calculation for their unit. Operators in project-based assistance programs typically ensure that initial contract rents are set at or within the FMR ceiling applicable to the unit's bedroom size and market area.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 888 § 888.111, tenants in the Section 8 Housing Choice Voucher program have a right to understand how FMRs influence the payment standard that determines how much of their rent the program will cover. If a tenant believes the payment standard or an initial project-based contract rent has been set inconsistently with the applicable FMR, they can raise that concern with their local Public Housing Authority or HUD field office. Tenant-rights organizations and HUD's own resources can help voucher holders understand how FMRs in their market area affect their housing options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.