Short answer: Not more than a reasonable market rent for that unit. HUD's FY2027 3-bedroom fair market rent is above the city's median 3-bedroom rent in 96 of 98 big US cities (a median 21% higher, Census ACS 2024), but the housing authority must find the rent reasonable compared with similar unassisted units, and its payment standard is generally 90% to 110% of the FMR.
Definition
Fair market rent (FMR) is HUD's yearly estimate of gross rent (rent plus tenant-paid utilities) at the 40th percentile for standard-quality units recently rented in a metro area or county. Housing authorities set Section 8 voucher payment standards at generally 90% to 110% of it, and a voucher rent must also be reasonable next to similar unassisted units.
By the numbers: HUD's FY2027 3-bedroom FMR is above the city's median 3-bedroom rent in 96 of 98 big US cities FirstDoor compared, a median 21% higher (Census ACS 2024). Even at the full FMR, only 9 would cash-flow on a median-priced home at 7.32% with 20% down.
Score a deal while you read
Type in a listing. The verdict updates as you go.
Starts at the US median home ($360,600) and 3-bed rent ($1,677/mo), Census ACS 2024, at Freddie Mac's 7.32% rate. Assumes tax at 0.89% of price (US median), $1,200/yr insurance, 3% closing costs, 5% vacancy, 5% maintenance and 8% management. Adjust all of these in the full calculator.
The short answer
On paper, often yes. HUD's fiscal year 2027 fair market rent (FMR) for a 3-bedroom, which took effect October 1, 2026, is higher than the city's median 3-bedroom rent in 96 of the 98 big US rental markets FirstDoor compared, by a median of 21% (Census ACS 2024).
In practice, no voucher pays more than the unit is worth. The housing authority must find your rent reasonable compared with similar unassisted units nearby, so the FMR is a ceiling on what a voucher can cover, not a rent you are owed. Treat the gap as a reason to check, not a reason to buy.
Good to know: This is educational, not legal or investment advice. Each housing authority sets its own payment standards and rules. FMRs and ACS medians are both gross rents (rent plus utilities the renter pays), so the comparison is like for like.
How a Section 8 rent gets set
The Housing Choice Voucher program, usually called Section 8, pays part of a tenant's rent directly to the landlord. Four numbers decide the rent you can get:
- Fair market rent. HUD publishes one per bedroom count for every metro or county each year. It is set at the 40th percentile of gross rents for standard-quality units recently rented in the area.
- Payment standard. The local housing authority picks the most its voucher will pay, generally between 90% and 110% of the FMR. Some metros use ZIP-code level "Small Area" FMRs instead, so the limit changes by neighborhood.
- Rent reasonableness. The authority compares your asking rent with similar unassisted units and will not approve one that is higher than the market supports.
- The tenant's share. The tenant usually pays about 30% of adjusted income and the voucher pays the rest, up to the payment standard minus a utility allowance if the tenant pays utilities. At move-in, the tenant's share can't exceed 40% of adjusted monthly income.
Rent you can collect ≈ the lower of a reasonable market rent and the payment standard (minus the utility allowance if the tenant pays utilities)Tip: Before you underwrite a voucher rental, call the local housing authority or check its website for the current payment standard by bedroom count and ZIP code. Then run the deal at that rent in the rental cash flow calculator.
Why the FMR often looks higher than the median
The gap in the table below is real, but much of it comes from comparing different things:
- Metro, not city. An FMR covers a whole metro area or county. Pricier suburbs pull it up, so it can sit well above the median inside an older, cheaper central city.
- Recent movers. FMRs reflect units that changed hands recently. The ACS median includes long-time tenants paying older, lower rents.
- Different dates. HUD trends FMRs forward to fiscal year 2027. The ACS medians are from 2024.
- Different houses. The median 3-bedroom rental in a city is not the median-priced home, and neither is your listing.
FMRs also move. From FY2026 (revised) to FY2027, the 3-bedroom FMR rose in 56 of these cities and fell in 42; the median change was +0.7%.
Red flag: A seller or wholesaler whose numbers use the full FMR as the rent because "Section 8 will pay it." Ask what the housing authority actually approved for that unit, and check rent comps for the street, not the metro.
FY2027 fair market rent vs median rent in 98 cities
Each city's HUD FY2027 3-bedroom FMR (the FMR area its county falls in) next to the city's median 3-bedroom gross rent (Census ACS 2024). The cash flow columns use the city's median-priced home, 20% down at 7.32% for 30 years, the city's median property tax, $1,200 a year insurance (assumed), 5% vacancy, 5% maintenance and 8% management, first at the median rent and then at the full FMR. Sorted by how far the FMR sits above the median.
| # | City | 3-bed FMR FY2027 | vs FY2026 | Median 3-bed rent | FMR vs median | Cash flow at median rent | Cash flow at FMR |
|---|---|---|---|---|---|---|---|
| 1 | New York, NY | $3,760 | +3.2% | $2,094 | +79.6% | −$3,217 | −$1,851 |
| 2 | Yonkers, NY | $3,760 | +3.2% | $2,128 | +76.7% | −$2,019 | −$681 |
| 3 | Boston, MA | $3,584 | +1.6% | $2,153 | +66.5% | −$2,677 | −$1,504 |
| 4 | Baltimore, MD | $2,509 | +6.4% | $1,569 | +59.9% | −$462 | $309 |
| 5 | Santa Ana, CA | $4,153 | −5.5% | $2,602 | +59.6% | −$2,554 | −$1,283 |
| 6 | Chicago, IL | $2,586 | +12.7% | $1,661 | +55.7% | −$1,042 | −$284 |
| 7 | Newark, NJ | $2,785 | +0.9% | $1,811 | +53.8% | −$1,351 | −$553 |
| 8 | St. Paul, MN | $2,264 | +0.1% | $1,475 | +53.5% | −$896 | −$249 |
| 9 | Anaheim, CA | $4,153 | −5.5% | $2,718 | +52.8% | −$3,233 | −$2,057 |
| 10 | Providence, RI | $2,302 | +10.3% | $1,525 | +51.0% | −$1,483 | −$846 |
| 11 | Jersey City, NJ | $3,392 | +0.7% | $2,249 | +50.8% | −$2,158 | −$1,221 |
| 12 | Miami, FL | $3,277 | +4.8% | $2,179 | +50.4% | −$2,027 | −$1,127 |
| 13 | Cleveland, OH | $1,628 | −1.1% | $1,105 | +47.3% | $63 | $491 |
| 14 | Los Angeles, CA | $3,760 | +2.1% | $2,564 | +46.6% | −$3,719 | −$2,738 |
| 15 | Oakland, CA | $3,592 | −3.5% | $2,474 | +45.2% | −$3,654 | −$2,737 |
| 16 | Honolulu, HI | $3,520 | −4.2% | $2,425 | +45.2% | −$3,006 | −$2,108 |
| 17 | Buffalo, NY | $1,732 | +5.6% | $1,217 | +42.3% | −$257 | $165 |
| 18 | Indianapolis, IN | $1,991 | +4.4% | $1,406 | +41.6% | −$462 | $18 |
| 19 | Detroit, MI | $1,777 | +3.1% | $1,255 | +41.6% | $284 | $712 |
| 20 | Hialeah, FL | $3,277 | +4.8% | $2,326 | +40.9% | −$848 | −$68 |
| 21 | Philadelphia, PA | $2,216 | +2.1% | $1,573 | +40.9% | −$379 | $148 |
| 22 | Long Beach, CA | $3,760 | +2.1% | $2,676 | +40.5% | −$3,051 | −$2,162 |
| 23 | Glendale, CA | $3,760 | +2.1% | $2,691 | +39.7% | −$4,960 | −$4,084 |
| 24 | Stockton, CA | $2,790 | +15.1% | $2,000 | +39.5% | −$1,255 | −$607 |
| 25 | St. Louis, MO | $1,731 | +10.4% | $1,275 | +35.8% | −$416 | −$42 |
| 26 | Worcester, MA | $2,560 | +0.5% | $1,892 | +35.3% | −$1,225 | −$677 |
| 27 | Knoxville, TN | $1,844 | −1.1% | $1,379 | +33.7% | −$728 | −$346 |
| 28 | Sacramento, CA | $2,887 | −3.8% | $2,170 | +33.0% | −$1,480 | −$892 |
| 29 | Tacoma, WA | $2,849 | +4.2% | $2,144 | +32.9% | −$1,484 | −$906 |
| 30 | Birmingham, AL | $1,727 | +9.1% | $1,303 | +32.5% | −$173 | $175 |
| 31 | San Jose, CA | $4,396 | −4.5% | $3,368 | +30.5% | −$5,115 | −$4,272 |
| 32 | Rochester, NY | $1,706 | −10.0% | $1,315 | +29.7% | −$182 | $139 |
| 33 | Minneapolis, MN | $2,264 | +0.1% | $1,748 | +29.5% | −$1,063 | −$640 |
| 34 | Toledo, OH | $1,461 | +5.9% | $1,146 | +27.5% | $17 | $276 |
| 35 | Norfolk, VA | $2,298 | −3.3% | $1,805 | +27.3% | −$590 | −$186 |
| 36 | Louisville, KY | $1,629 | +0.2% | $1,294 | +25.9% | −$537 | −$263 |
| 37 | Lexington, KY | $1,948 | +11.8% | $1,570 | +24.1% | −$782 | −$472 |
| 38 | Kansas City, MO | $2,020 | +14.2% | $1,641 | +23.1% | −$425 | −$114 |
| 39 | Albuquerque, NM | $1,902 | −6.6% | $1,550 | +22.7% | −$844 | −$555 |
| 40 | Salt Lake City, UT | $2,143 | −8.1% | $1,747 | +22.7% | −$2,312 | −$1,988 |
| 41 | Fresno, CA | $2,333 | +0.8% | $1,902 | +22.7% | −$959 | −$606 |
| 42 | San Diego, CA | $3,743 | −6.4% | $3,052 | +22.6% | −$3,496 | −$2,929 |
| 43 | Dallas, TX | $2,275 | −6.4% | $1,856 | +22.6% | −$861 | −$517 |
| 44 | Milwaukee, WI | $1,553 | −5.8% | $1,273 | +22.0% | −$499 | −$269 |
| 45 | Winston-Salem, NC | $1,754 | +9.1% | $1,445 | +21.4% | −$639 | −$386 |
| 46 | Lincoln, NE | $1,703 | +7.3% | $1,403 | +21.4% | −$814 | −$568 |
| 47 | Richmond, VA | $2,039 | −1.6% | $1,682 | +21.2% | −$1,118 | −$825 |
| 48 | Memphis, TN | $1,717 | +2.0% | $1,418 | +21.1% | −$252 | −$7 |
| 49 | Arlington, TX | $2,284 | +0.5% | $1,887 | +21.0% | −$780 | −$454 |
| 50 | Washington, DC | $3,107 | +9.6% | $2,567 | +21.0% | −$2,408 | −$1,965 |
| 51 | Cincinnati, OH | $1,897 | +6.3% | $1,588 | +19.5% | −$557 | −$304 |
| 52 | Aurora, CO | $2,846 | +4.1% | $2,397 | +18.7% | −$1,068 | −$700 |
| 53 | El Paso, TX | $1,559 | −4.5% | $1,319 | +18.2% | −$477 | −$280 |
| 54 | Jacksonville, FL | $2,077 | +1.7% | $1,767 | +17.5% | −$647 | −$393 |
| 55 | Tulsa, OK | $1,611 | +0.6% | $1,371 | +17.5% | −$437 | −$241 |
| 56 | New Orleans, LA | $1,900 | +11.7% | $1,624 | +17.0% | −$670 | −$443 |
| 57 | Fort Worth, TX | $2,284 | +0.5% | $1,964 | +16.3% | −$727 | −$464 |
| 58 | Omaha, NE | $1,924 | +6.1% | $1,658 | +16.0% | −$593 | −$375 |
| 59 | Oklahoma City, OK | $1,713 | +2.3% | $1,479 | +15.8% | −$518 | −$327 |
| 60 | Bakersfield, CA | $2,293 | +11.2% | $1,986 | +15.5% | −$1,028 | −$776 |
| 61 | Tucson, AZ | $1,946 | −0.2% | $1,688 | +15.3% | −$511 | −$299 |
| 62 | Corpus Christi, TX | $1,855 | +3.3% | $1,616 | +14.8% | −$328 | −$132 |
| 63 | Columbus, OH | $1,909 | +11.3% | $1,672 | +14.2% | −$564 | −$369 |
| 64 | Virginia Beach, VA | $2,298 | −3.3% | $2,019 | +13.8% | −$931 | −$703 |
| 65 | Seattle, WA | $3,324 | +1.6% | $2,951 | +12.6% | −$3,530 | −$3,225 |
| 66 | Tampa, FL | $2,448 | −3.1% | $2,176 | +12.5% | −$1,369 | −$1,146 |
| 67 | Las Vegas, NV | $2,317 | −4.0% | $2,067 | +12.1% | −$1,109 | −$904 |
| 68 | Nashville, TN | $2,309 | +4.4% | $2,064 | +11.9% | −$1,025 | −$824 |
| 69 | Houston, TX | $2,017 | −4.7% | $1,819 | +10.9% | −$623 | −$460 |
| 70 | Denver, CO | $2,846 | +4.1% | $2,570 | +10.7% | −$1,746 | −$1,519 |
| 71 | Charlotte, NC | $2,179 | +5.0% | $1,969 | +10.7% | −$1,107 | −$935 |
| 72 | Spring Valley, NV | $2,317 | −4.0% | $2,095 | +10.6% | −$985 | −$803 |
| 73 | Riverside, CA | $2,771 | −4.8% | $2,507 | +10.5% | −$1,729 | −$1,512 |
| 74 | Tempe, AZ | $2,287 | −6.7% | $2,072 | +10.4% | −$1,244 | −$1,067 |
| 75 | Reno, NV | $2,452 | −3.4% | $2,224 | +10.3% | −$1,599 | −$1,412 |
| 76 | Mesa, AZ | $2,287 | −6.7% | $2,076 | +10.2% | −$949 | −$776 |
| 77 | Raleigh, NC | $2,103 | −4.2% | $1,909 | +10.2% | −$1,280 | −$1,121 |
| 78 | Greensboro, NC | $1,644 | −3.5% | $1,495 | +10.0% | −$679 | −$557 |
| 79 | Atlanta, GA | $2,099 | −3.8% | $1,918 | +9.4% | −$1,456 | −$1,307 |
| 80 | Tallahassee, FL | $1,742 | +4.1% | $1,592 | +9.4% | −$615 | −$492 |
| 81 | San Antonio, TX | $1,864 | +1.9% | $1,707 | +9.2% | −$470 | −$341 |
| 82 | Madison, WI | $2,047 | −8.5% | $1,876 | +9.1% | −$1,409 | −$1,268 |
| 83 | Pittsburgh, PA | $1,773 | +6.7% | $1,630 | +8.8% | −$120 | −$2 |
| 84 | Durham, NC | $2,161 | +2.1% | $1,989 | +8.6% | −$1,167 | −$1,026 |
| 85 | Lubbock, TX | $1,718 | +5.1% | $1,583 | +8.5% | −$283 | −$172 |
| 86 | Portland, OR | $2,550 | −2.6% | $2,364 | +7.9% | −$1,888 | −$1,735 |
| 87 | Irving, TX | $2,275 | −6.4% | $2,123 | +7.2% | −$674 | −$549 |
| 88 | Alexandria, VA | $3,107 | +9.6% | $2,909 | +6.8% | −$2,135 | −$1,973 |
| 89 | Phoenix, AZ | $2,287 | −6.7% | $2,142 | +6.8% | −$995 | −$876 |
| 90 | Orlando, FL | $2,445 | −1.3% | $2,293 | +6.6% | −$869 | −$744 |
| 91 | Wichita, KS | $1,382 | −4.3% | $1,310 | +5.5% | −$392 | −$333 |
| 92 | Colorado Springs, CO | $2,245 | −7.0% | $2,145 | +4.7% | −$1,135 | −$1,053 |
| 93 | St. Petersburg, FL | $2,448 | −3.1% | $2,351 | +4.1% | −$801 | −$721 |
| 94 | Austin, TX | $2,292 | −2.3% | $2,217 | +3.4% | −$2,042 | −$1,981 |
| 95 | Henderson, NV | $2,317 | −4.0% | $2,253 | +2.8% | −$1,328 | −$1,276 |
| 96 | Gainesville, FL | $1,806 | −3.3% | $1,789 | +1.0% | −$335 | −$321 |
| 97 | Plano, TX | $2,275 | −6.4% | $2,366 | −3.8% | −$1,653 | −$1,727 |
| 98 | Arlington, VA | $3,107 | +9.6% | $3,306 | −6.0% | −$3,325 | −$3,488 |
At the median rent, 3 of 98 cities cash-flow on a median-priced home. Even if a voucher paid the full FMR, only 9 would (Baltimore, MD, Cleveland, OH, Buffalo, NY, Indianapolis, IN, Detroit, MI, Philadelphia, PA, Birmingham, AL, Rochester, NY and Toledo, OH), and 4 would reach FirstDoor's $200 a month strong mark. The median city would still lose about $659 a month. Click a cash flow figure to open that case in the calculator.
Good to know: These are survey medians and area-wide limits, not quotes for any unit. FMR areas follow HUD's definitions; cities that span counties in different FMR areas use their principal county. ACS reports rents above $3,500 only as "$3,500+", so San Francisco, CA, Irvine, CA are left out, and taxes above $10,000 are capped at $10,000.
Is a Section 8 tenant right for your first rental?
Some landlords build their whole business on vouchers; others avoid them. The trade-offs to weigh:
- Steadier income. The housing authority's share arrives directly, which can smooth out a tenant's bad month.
- Inspections and paperwork. The unit has to pass the authority's inspection before the lease starts and again later, and the first payment can take a few weeks to set up.
- Rent increases need approval. Raises go through the authority and the reasonableness test again.
- The rules are local. Some states and cities bar landlords from turning away tenants because they pay with a voucher. Check yours before you advertise.
Either way, underwrite with full expense budgets. A voucher changes who pays the rent, not what the property costs. For the cushion FirstDoor looks for, see what good cash flow is, and for checking a rent before you count on it, see how to estimate rent.
Worked example
Baltimore, MD: the city's median-priced home ($247,400, Census ACS 2024) rented at the full HUD FY2027 3-bedroom fair market rent ($2,509/mo) instead of the city's median 3-bedroom rent ($1,569/mo). 20% down at 7.32% for 30 years (Freddie Mac, October 22, 2026), the city's median property tax ($3,468/yr), $1,200/yr insurance (assumed), 5% vacancy, 5% maintenance, 8% management, closing costs assumed at 3% ($7,422). Only works if the housing authority finds that rent reasonable.
| Rent at FMR / mo | $2,509 |
| Operating costs (/mo) | −$841 |
| Mortgage (P&I) | −$1,360 |
| Cash flow / mo at FMR | $309 |
| Cash flow / mo at median rent | −$462 |
Frequently asked questions
Does Section 8 pay more than market rent?
Not more than a reasonable market rent for that unit. HUD's FY2027 3-bedroom fair market rent is above the city's median 3-bedroom rent in 96 of 98 big US cities (a median 21% higher, Census ACS 2024), but the housing authority must find the rent reasonable compared with similar unassisted units, and its payment standard is generally 90% to 110% of the FMR.
What is the fair market rent?
A yearly HUD figure for each metro area or county and bedroom count, set at the 40th percentile of gross rent (rent plus tenant-paid utilities) for standard-quality units recently rented there. Housing authorities use it to set voucher payment standards.
When do the FY2027 fair market rents take effect?
Fiscal year 2027 FMRs took effect October 1, 2026. Housing authorities then update their payment standards, so the limit for a new lease can lag HUD's release.
How much of the rent does Section 8 pay?
The tenant usually pays about 30% of adjusted monthly income and the voucher pays the rest, up to the payment standard (minus a utility allowance if the tenant pays utilities). At move-in, the tenant's share can't be more than 40% of adjusted monthly income.
Can a Section 8 rental cash flow?
It depends on the price, like any rental. Using FirstDoor's defaults on a median-priced home with 20% down at 7.32%, only 9 of 98 big US cities would cash-flow even at the full FMR, versus 3 at the median rent.
Keep learning
Sources
Educational content, not financial advice. Loan programs and requirements change; confirm with a lender.