Small Area Fair Market Rent (SAFMR) Program
Last Revised: September 30, 2025
- Issue Areas
- Housing and community development
Program overview
Adjusting Housing Choice Vouchers (HCVs) based on ZIP code: The Small Area Fair Market Rent (SAFMR) program created by the US Department of Housing and Urban Development (HUD) allows local Public Housing Agencies (PHAs) to set Housing Choice Voucher (HCV) payment levels by ZIP code instead of at a single metropolitan area-wide rate. By allowing HCVs to reflect varying housing costs across regional submarkets, SAFMR can give HCV holders the opportunity to secure housing in higher-rent and/or lower-poverty areas, where vouchers may not have previously provided enough subsidy.
Housing Choice Vouchers better reflect the housing market: SAFMRs enable HCV subsidies to better align with local rental markets, accounting for variations across neighborhoods. PHAs can set HCV payment standards between 90 and 110 percent of the SAFMR in a ZIP code (and up to 120 percent for families with disabled individuals). These subsidies should allow HCV recipients to access higher cost areas while still spending 30–40% of their monthly adjusted incomes on housing. SAFMRs allow for increased subsidies in higher-rent areas and decreased subsidies in lower-rent areas.
Increasing housing and economic mobility: Research shows that recipients who move are more likely to locate in higher opportunity neighborhoods in areas that have implemented SAFMRs. On average, these are areas with lower crime rates and better job access, school quality, and environmental health conditions.
Furthering fair housing goals: SAFMRs help PHAs further their pursuit of fair housing by helping voucher recipients move into more racially integrated areas and reducing concentrations of HCV recipients in certain areas. SAFMRs also help PHAs earn “deconcentration bonus” points on their annual Section Eight Management Assessment Program (SEMAP) by increasing the housing options for HCV recipients in higher income neighborhoods.
Multiple studies with rigorous designs provide some evidence for SAFMRs as a strategy for increasing the proportion of HCV recipients living in lower-poverty areas.
A 2025 quasi-experimental study of SAFMRs nationwide found that households in SAFMR areas moved to ZIP codes with 12 percent less poverty on average.
A 2019 quasi-experimental study found that SAFMRs in five cities led to the share of HCV recipients renting in high-poverty ZIP Codes decreasing by 22 percent.
A 2018 quasi-experimental study demonstrated that SAFMRs led to a 5% increase in voucher recipients living in higher-rent ratio ZIP Codes over a 7 year implementation period, with these ZIP codes having better job access, school performance, and fewer environmental health hazards.
A 2017 quasi-experimental study comparing HCVs in Dallas, TX and Ft. Worth, TX found that SAFMR implementation in Dallas increased HCV households in areas with lower crime.
Engaging with landlords: Notifying landlords well in advance of any change in the HCV amount is essential. When communicating with landlords, emphasize that while the HCV subsidy may be changing, the rent they are entitled to collect does not change. Some PHAs offer incentives to landlords when implementing a SAFMR program to increase the availability of eligible units in areas with fewer units that accept HCVs or to encourage landlords to house certain populations such as homeless veterans.
Conducting outreach to tenants: Communicating any changes to a tenant’s HCV amount is essential for the tenant’s financial planning and well being. Notifying tenants well in advance is especially important since some tenants might see a reduction in their rental assistance due to a SAFMR program. PHAs might also conduct outreach through informational mail, answering questions at community meetings, or creating interactive tools on the PHA website to show payment standards by ZIP code and bedroom size. Consider language accessibility so all tenants receive the information they need.
Strong data collection: A successful SAFMR program relies on thorough data collection to assess what the neighborhood rates are and to calculate the appropriate subsidy amount. Additionally, data collection is needed to track where housing voucher recipients are moving to help measure the impact and effectiveness of the SAFMR program. The HUD Two Year Tool helps PHAs project costs for the HCV program and fine tune SAMFMR payment standards.
Increasing administrative capacity: Agencies may experience higher administrative costs to implement SAFMRs for practices including modifying automated systems, notifying tenants and landlords, calculating payment standards, and training agency staff.