Small Area Fair Market Rents (SAFMRs) are an important tool PHAs can use to increase choice for voucher holders and efficiency in the administration of the Housing Choice Voucher (HCV) program. In 2016, HUD published the Small Area Fair Market Rents (SAFMR) Final Rule allowing for the determination of HCV payment standards using Fair Market Rents (FMRs) calculated at the ZIP code level, rather than a metropolitan area-wide FMR. SAFMRs allow for payment standards to be established that more accurately reflect the local market. This can be helpful in providing voucher holders greater access to low-poverty and/or high-opportunity neighborhoods.
Currently, there are 24 metropolitan areas where the use of SAFMRs is required in the administration of HCV. This will be expanding to 41 additional metropolitan areas starting January 1, 2025. Additional public housing agencies (PHAs) have voluntarily adopted SAFMRs or are utilizing SAFMRs as exception payment standards to increase access to units for their voucher families.
The Small Area Fair Market Rent (SAFMR) Dashboard shows which PHAs have adopted small area FMRs and how many HCV program units are associated with SAFMRs nationally. The dashboard allows the user to drill down to the state and PHA-level. The dashboard data with respect to program units is updated monthly with the most current and relevant data from HUD administrative systems. The classification of PHAs with SAFMRs is updated as soon as they are identified as such to HUD.
The SAFMR dashboard is accessible both internally to HUD employees and externally to the public. The public-facing dashboard is embedded below and accessible via this link.
This dashboard displays best in Chrome and Firefox.
SAFMR Type:
- Mandatory: PHA is in a HUD-designated SAFMR metropolitan area and must use SAFMR (with the exception of Moving to Work PHAs that have alternative payment standards approved). Mandatory PHAs are utilizing SAFMR throughout the HUD-designated area.
- EPS: The PHA is utilizing SAFMR as exception payment standards (only in certain ZIP Codes in their jurisdiction)*
- Opt-In: The PHA has voluntarily adopted SAFMRs across its jurisdiction
UMA: Unit Months Allocated – this is the number of HCV units that HUD has allocated to the PHA under its Annual Contributions Contract (ACC). This does not reflect only leased vouchers, rather it is the total number of vouchers that may be covered under SAFMR policy in the PHA’s jurisdiction.*
*A SAFMR type of EPS indicates that the PHA has adopted SAFMRs as exception payment standards in select ZIP codes. The number of units indicated here assumes all units within a PHA use a small area FMR and thus may be an overcount for those PHAs with SAFMR type “EPS”. “Mandatory” and “Opt-In” PHAs would be using SAFMRs fully, so the UMA number is a better representation of how many vouchers are covered by SAFMR policies at those PHAs.
SAFMR Resources
Data and Mapping Resources
SAFMR Data Set – Use this lookup tool to find current and previously published SAFMRs by ZIP Code.
Notices
PIH Notice 2024-34, “Updated and Consolidated Policy Guidance on Housing Choice Voucher (HCV) Program Payment Standards” – This Notice provides consolidated and comprehensive guidance to public housing agencies (PHAs) on payment standards that incorporates recent regulatory and policy guidance.
Federal Register Notice FR-6426-N-01 – This Notice describes the expansion of SAFMRs to 41 additional metropolitan areas with an implementation date of October 1, 2024.
PIH Notice 2023-32 – This notice provides guidance to PHAs and Field Offices operating in the 41 metropolitan areas with an implementation date of October 1, 2024.
2016 SAFMR Final Rule - On November 16, 2016, HUD released a Notice of Final Rulemaking regarding the use of Small Area FMRs in certain metropolitan areas for the Housing Choice Voucher Program. The notice was published in the Federal Register.
Regulations
24 CFR Part 888 – HUD Regulations governing Fair Market Rents, including SAFMRs for the HCV program.
24 CFR 982.503 - HUD regulations governing payment standard areas, schedule, and amounts.
24 CFR 983.301(f)(3) - HUD regulations governing exception payment standards for PBV as it relates to SAFMRs and determining the amount of rent to owner.
Technical Assistance Resources
HUD Exchange SAFMR Website – This website provides additional information and resources to assist PHAs in implementation of SAFMRs. It includes the SAFMRs Implementation Guidebook, case studies and sample implementation documents, among other useful resources.
Webinars
SAFMR Webinar for 2024 Expansion PHAs – This webinar from Nov 7, 2023 provides additional information to PHAs that are designed to adopt Small Area Fair Market Rents in 2024.
HCV Utilization Webinar - Considering Small Area FMRs – This webinar recording targeted to PHAs considering opting into SAFMRs. Topics include a walk through of the new Small Area FMR dashboard/web page, the benefits of Small Area FMRs, how to implement them, and a reminder about additional funds. Please note this webinar was conducted prior to the HOTMA Voucher Final rule, and some content related to exception payment standards may be outdated.
List of Mandatory SAFMR PHAs
SAFMR PHA List – This list includes PHAs in the 2024 and 2018 mandatory SAFMR metro areas. Please contact SAFMRs@hud.gov if you have questions about this list.
The Small Area FMR Demonstration – 2013 Cityscape article that provides an overview of a demonstration that focuses on the implementation of SAFMRs at seven PHAs to test the effects of replacing metropolitan FMRs with ZIP Code-level SAFMRs.
Small Area Fair Market Rent Demonstration: Interim Report – 2017 interim report examining potential access to opportunity, the actual access to opportunity and the costs and rents associated with the implementation of SAFMRs.
Small Area Fair Market Rent Demonstration: Final Report (Dastrup et al. 2018) – 2018 final report evaluating the impact of implementing SAFMRs including how the use of SAFMRs affects HCV families and landlords, the impact of SAFMRs on Housing Assistance Payments (HAP) paid by HUD and the tenant portion of rent paid by SAFMR families and the PHA administrative procedures and costs incurred in implementing SAFMRs.
How Do Changes in Housing Voucher Design Affect Rent and Neighborhood Quality? (Collinson and Ganong 2018) – Prior to HUD issuing the 2016 Final Rule, researchers evaluated outcomes of SAFMRs in Dallas, Texas, the first metro area to implement SAFMRs as part of a court settlement in 2010, and found that implementing payment standards at smaller geographies improve locational outcomes for voucher holders.
The Effects of Small Area Fair Market Rents on the Neighborhood Choices of Families with Children (Dastrup, Finkel and Ellen 2019) – Early research evaluating the effects of the 2016 Final Rule across a larger sample of markets (all 24 metro areas covered by the rule) found that SAMFRs have helped families with children move to neighborhoods that score higher on opportunity measures, such as poverty rates and school proficiency.