The Department of Housing and Urban Development (HUD) defines this as $802 a month for a one-bedroom apartment in Chicago in Fiscal Year 2006. This figure should not be more than 30% of a householdâ€(tm)s income and should include the cost of the shelter rent plus the cost of all utilities, except telephones.
The rent which would be normally agreed upon by a willing landlord and tenant in an "arm's length transaction" for a specific property at a given time.
The rent a property commands in a free and open market setting.
An amount determined by HUD to be the cost of modest, non-luxury rental units in a specific market area. With certain exceptions, it is the highest rent chargeable for that market under Section 8.
The Department of Housing and Urban Development's assessed value of actual market rent for a unit of housing based on the cost of building and managing a rental property or the prevailing rent in the area. This estimate is updated and published on a yearly basis.
Geographical average rent for that particular area. The standards are implemented by HUD and cannot be changed. FMR is used as a standard to obtain privately owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable amenities. Separate FMRs are established for dwelling units of varying sizes (number of bedrooms) and types. It is used as a maximum for Gross Rent in the Certificate Program (without an exception rent.) In the Voucher Program, it is used as a cap for the Payment Standard, used in the ACC calculation of subsidy dollars, and is used to calculate the administrative fee. For the Section 8 Certificate Program, the FMR is published & updated by HUD usually at the star of October.
The amount that a property would command if it were currently available to rent or lease.
Fair Market Rent is a term in real estate that indicates the amount of money that a given property would command, if it were open for leasing at the moment. The term is primarily used in the United States.