Definition: Fair market rents are gross rent estimates that include the cost of rent and all utilities except telephone service (e.g., in fiscal year 2016, the average monthly cost of rent and all utilities except telephone service in Alameda County for a two-bedroom apartment is $1,580). The current definition used for most areas is the 40th percentile rent, the dollar amount below which 40% of the standard quality rental housing units are rented.
Data Source: U.S. Dept. of Housing and Urban Development, Fair Market Rents (Dec. 2015).
Footnote: The 40th percentile rent is derived from the distribution of rents of all units occupied by recent movers (renter households who moved to their present residence within the past 15 months). HUD researchers are required to ensure that fair market rents exclude non-market rental housing (e.g., public housing units) in their computations. They do not make state-level data available.