Small Area Fair Market Rent SAFMR

What are SAFMR?

SAFMR stands for “Small Area Fair Market Rents.” SAFMRs are estimates of the typical rent  (including the cost of utilities, except telephone), for different unit sizes within a specific ZIP code. SAFMRs are established by the U.S. Department of Housing and Urban Development (HUD) each year. The City of Miami’s Section 8 program must begin to implement SAFMRs in their Housing Choice Voucher program no later than January 1, 2025.

Information for Landlords and Tenants - when, and how, will new standards apply?

The City has elected no change in policy for all zip codes. This means that effective on or after January 1, 2025, the PHA will use the lower payment standard to recalculate the family’s HAP (based on zip) but the reduced payment standard may not be applied any earlier than the second annual reexamination following the effective date of the reduced payment standard.

Previously, the City used Fair Market Rents (FMRs), which are calculated annually, becoming effective October 1 of every year, and reflected a single rent standard for an entire metropolitan region. The new SAFMR for the Miami metropolitan area means US HUD will adjust and set the payment standards annually for each of the 30+ zip codes of the City of Miami’s coverage area.

HUD identifies the metropolitan areas where use of the use of Small Area FMRs is required in the administration of the Housing Choice Voucher (HCV) program.

The new approach means if your property is located in a high-cost neighborhood, it is likely that the share of the rent and utilities the PHA (City) will pay on behalf of the tenant will increase. At the same time, the payment standards in many low-cost areas will likely be reduced, meaning tenants may be responsible for a greater share of rent and utility payments, depending on the amount of the rent.

What is a payment standard?

For the Housing Choice Voucher program, payment standards are the allowances, for each unit size, that will be used to determine a family’s Housing Assistance Payment (HAP) subsidy.

About the new SAFMR Payment Standards (zip codes)

Please be advised, SAFMR Payment Standards are not suggested contract rents.  The SAFMR payment standards are the absolute maximum that can be paid for a given rental unit in a given zip code; however, any rents requested will be confirmed through a market analysis conducted by the City’s HCV staff. 

How will rent be calculated once SAMFRs are in play?

When implementing the new SAFMRs, rent will be calculated as per the example noted below. Please call our Section 8 unit should you have questions.