Property fundamentals
Fair Market Rent
HUD's annual estimate of 40th-percentile gross rent for a standard-quality unit in an FMR area and bedroom count. FMRs are used in several housing programs, including as an input to Housing Choice Voucher payment standards.
Why Fair Market Rent matters
FMR is an area benchmark, not an address-level market comp, rent floor, payment standard, approved contract rent, or collection promise. TrueCap can prefill it from HUD, but you should replace it with current comparable leases and property-specific program figures where applicable.
How to check Fair Market Rent before you rely on it
Confirm the figure on HUD's own site for the fiscal year, the area, and the bedroom count, and note whether a small-area rent applies to the ZIP code. Then replace it: pull current listings and, better, signed leases for comparable units within a mile, and ask a local property manager what the unit would actually lease for in its current condition. Use the comparable rent in the analysis and keep the HUD figure only as a reference point.
Related terms
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Where Fair Market Rent shows up in TrueCap
Property fundamentals are the facts you enter or confirm about the building itself — price, units, bedrooms, square footage — and the analyzer keeps them separate from assumptions. They decide which benchmarks apply (a 3-bedroom rent benchmark, for example) and appear at the top of every results view and memo so the reader knows exactly what was analyzed.