Small Area FMRs, explained with Dallas
A Small Area Fair Market Rent (SAFMR) is HUD’s Fair Market Rent for one ZIP code. In the 65 metro areas HUD has designated, housing agencies must set Housing Choice Voucher payment standards from the ZIP figure instead of a single number for the whole metro (24 CFR 982.503(a)). Anywhere else, an agency can opt in by telling HUD. HUD publishes SAFMRs for every metro ZIP either way.
How far apart the numbers get: Dallas
Dallas was the first. It has used Small Area FMRs since October 1, 2011. For FY 2027 the Dallas HUD Metro FMR Area’s 2-bedroom FMR is $1,807. The ZIP figures for the same metro:
| ZIP | 2BR Small Area FMR | vs metro FMR |
|---|---|---|
| 75201 | $2,710 | +50% |
| 75204 | $2,550 | +41% |
| 75217 | $1,330 | −26% |
| 75216 | $1,300 | −28% |
| Dallas metro, area-wide | $1,807 |
Source: HUD FY 2027 Small Area FMR file and FY 2027 FMR file, effective October 1, 2026.
Under a metro-wide standard, a voucher in Dallas would top out near $1,807 for a 2-bedroom (more at a 110% standard) no matter where the unit sat. Under Small Area FMRs it can reach about $2,700 in 75201 and only about $1,300 in 75216.
What that means for a landlord
- In a high-rent ZIP, a voucher can cover rents that a metro-wide standard would never reach. Voucher tenants become a realistic part of the market for a newer or better-located unit.
- In a low-rent ZIP, the ceiling drops. A unit that leased to voucher holders at the metro rate may not support the same rent once the agency follows the ZIP figure.
- Changes are cushioned. In mandatory areas, a ZIP’s FY 2027 SAFMR can’t fall below 90% of its FY 2026 SAFMR, per HUD’s FY 2027 notice (91 FR 56156). An agency also doesn’t have to cut a current family’s payment standard when the figure drops, and if it does, it waits two years (24 CFR 982.505(c)(3)).
The agency still chooses the payment standard: anywhere from 90% to 110% of the SAFMR without asking HUD. Ask the agency for its current schedule by ZIP before you price a unit.
Where they are mandatory
HUD designated 23 areas in 2016 (in use since April 1, 2018) and 41 more in a 2023 notice (in use since January 1, 2025), on top of Dallas. The full list of 65 includes Atlanta, Chicago, Philadelphia, Charlotte, Jacksonville, Columbus, Detroit, Indianapolis, Cleveland and San Jose, along with their FY 2027 metro FMR for comparison.
Outside the mandatory metros
An agency that hasn’t opted in sets payment standards from the metro or nonmetro county FMR. It can still adopt an exception payment standard for a ZIP of up to 110% of that ZIP’s SAFMR without HUD approval (24 CFR 982.503(d)(2)). So a SAFMR can matter even where it isn’t required.
Reading a ZIP that sits in two areas
About 10,000 ZIP codes cross HUD rent-area lines, and HUD lists a separate SAFMR for each pair. The lookup shows each one. Use the one for the county the property is in.
The ZIP figures here are HUD’s public data; this site is not HUD and has no role in setting them. For the agency’s actual payment standard, ask the agency.
Questions people ask
What is a Small Area Fair Market Rent?
A Fair Market Rent HUD calculates for a single ZIP code instead of a whole metro area. In 65 metro areas HUD requires housing agencies to set voucher payment standards from them; elsewhere agencies can opt in.
Do Small Area FMRs apply to my property?
They set voucher payment standards if the property is in one of HUD's 65 mandatory Small Area FMR metros, or if the local housing agency has opted in. Otherwise the metro or county FMR applies, though an agency may use the ZIP figure for an exception payment standard.