Fair Market Rent is HUD's payment standard for the Housing Choice Voucher program, set at the 40th percentile of gross rents in each ZIP code. Market rent, from the Zillow Observed Rent Index, is what landlords are asking across all unit sizes today. The spread between the two shows where a voucher goes furthest and where it falls short.
When FMR sits at or above market rent, a landlord accepting a voucher at the payment standard collects as much or more than chasing a market rate tenant. That is a voucher competitive ZIP: fewer vacancies, less marketing, and a government backed portion of the rent every month. When market rent runs well above FMR, the voucher covers less of the ask, and a landlord has to make up the difference from the tenant's portion or look elsewhere for a match.
Two honest limits. FMR is a 2 bedroom, 40th percentile number, it does not capture unit condition, exact bedroom count, or the specific street. Zillow ZORI is a smoothed index across all unit sizes, not a same unit comparison. Treat the spread as a screening signal for where to dig into comps, not a final answer for one address.
| ZIP | City | Market rent | 2BR FMR | Spread $ | Spread % | Voucher fit |
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Click a column to sort. Spread is market rent minus 2BR FMR. Voucher competitive ZIPs are where FMR meets or exceeds market rent. Full definitions are in the methodology, and the same rows are available as JSON from the data API.
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It is the dollar and percent difference between HUD's Fair Market Rent, a 2 bedroom 40th percentile estimate, and Zillow's Observed Rent Index, a market wide asking rent. A positive spread means market rent runs above FMR. A negative spread means FMR sits at or above market rent.
A ZIP is flagged voucher competitive when the FMR payment standard is at or above the typical market asking rent. In those ZIPs a landlord accepting a Housing Choice Voucher tenant collects as much or more than chasing an open market tenant, which usually means faster leasing and less vacancy risk.
No. FMR is HUD's benchmark for voucher payment standards, not a market appraisal. It does not account for unit condition, exact bedroom count, or the specific block. Use this table to screen ZIP codes, then underwrite the actual unit with real comps.
Pencilwrite turns an address, a price, and these rents into a full underwrite, cap rate, cash-on-cash, DSCR, true ROE, taxes, and an offer you can send. Limited beta access spots open. Sign up for the beta, opening in the next two months. Free.
