The rent standard · HUD rental data
40th percentile rent
The standard basis for FMRs — the rent below which 40% of recent-mover units fall.
Most FMRs are set at the 40th percentile of gross rents for standard-quality units recently rented by people who moved within the last two years. Forty percent of that market falls at or below the FMR; sixty percent sits above it.
Two consequences follow. An FMR is deliberately not the median, so describing it as 'the average rent' overstates it as a market measure by design. And because it is drawn from recent movers rather than all tenancies, it tracks what a household entering the market now would face — which is why it moves faster than a rent index covering sitting tenants.
Also known as: 40th percentile, fortieth percentile.
See 40th percentile rent in the data
Look up HUD Fair Market Rents by county and bedroom count, and see how they have moved across fiscal years. Start free — no credit card needed.
40th percentile rent — FAQ
What is 40th percentile rent in HUD rent data?+
The standard basis for FMRs — the rent below which 40% of recent-mover units fall. Most FMRs are set at the 40th percentile of gross rents for standard-quality units recently rented by people who moved within the last two years. Forty percent of that market falls at or below the FMR; sixty percent sits above it.
Why does 40th percentile rent matter?+
Two consequences follow. An FMR is deliberately not the median, so describing it as 'the average rent' overstates it as a market measure by design. And because it is drawn from recent movers rather than all tenancies, it tracks what a household entering the market now would face — which is why it moves faster than a rent index covering sitting tenants.
Where does this HUD rent data come from?+
Fair Market Rents are published annually by the U.S. Department of Housing and Urban Development for each fiscal year. pumsdata is independent and not affiliated with HUD; nothing here is a determination of any household's benefit.