Every October, HUD releases new Fair Market Rents and income limits that affect Section 8 vouchers nationwide. FY2026 (which started October 1, 2025) brought some significant changes. Here's a comprehensive breakdown of what's different this year.

Payment Standard Changes: The Big Picture

Overall, FY2026 saw larger-than-typical increases in payment standards across most of the country. Here's the national overview:

• Average increase: 6-8% nationally
• Highest increases: Sun Belt metros (10-12%)
• Lowest increases: Rural areas and stable Midwest markets (2-4%)
• Some areas saw decreases: A handful of markets that had been overvalued saw slight (-1-3%) reductions

Markets With the Biggest Jumps

These metros saw double-digit payment standard increases:

• Phoenix-Mesa-Scottsdale, AZ: +10-11%
• Las Vegas-Henderson, NV: +9-10%
• Tampa-St. Petersburg, FL: +9-11%
• Austin-Round Rock, TX: +8-10%
• Raleigh-Durham, NC: +8-9%

Why these markets? They experienced rapid rent growth in 2023-2024, and HUD's FMR calculations finally caught up with the data.

Income Limit Changes

Income limits also increased for 2026, meaning more families may now qualify:

• Average VLI increase: 5-8%
• High-cost areas: Saw larger increases (8-12%) as median incomes rose
• Rural areas: Modest increases (2-5%)

If you were slightly over the income limit last year, check again — you might qualify now.

Policy and Administrative Changes

Beyond the numbers, there were some policy updates:

SAFMR Expansion

Several additional PHAs voluntarily adopted Small Area Fair Market Rents in 2025-2026, joining the 24 mandatory metros. This means more areas now have ZIP code-level payment standards instead of metro-wide averages.

Inspection Flexibility

HUD continued allowing some inspection flexibilities introduced during COVID, though most in-person inspection requirements have resumed. Some PHAs now use remote pre-inspections to speed up the process.

Portability Streamlining

Moving your voucher between jurisdictions (portability) got slightly easier with updated guidance on billing arrangements between PHAs.

What This Means for Tenants

If you have a voucher, here's what changed for you:

• More housing options: Higher payment standards mean you can afford units that might have been out of reach before
• No action needed: Your PHA will automatically apply the new standards when you search or at your next annual recertification
• Consider mobility: If you've wanted to move to a better neighborhood, the 2026 standards might make it feasible

What This Means for Landlords

If you're a Section 8 landlord:

• Request rent increases: If your current rent is below the new payment standard, submit a rent increase request to your PHA
• Review comparable markets: Make sure your rent is competitive with both the payment standard AND similar market-rate units (rent reasonableness still applies)
• Consider expanding: The narrowing gap between Section 8 and market rents makes the program more attractive in many areas

Comparing Specific Markets: 2025 vs 2026

Here are 2BR payment standard comparisons for major metros:

• Phoenix, AZ: $1,495 to $1,645 (+$150/month)
• Houston, TX: $1,331 to $1,425 (+$94/month)
• Atlanta, GA: $1,440 to $1,560 (+$120/month)
• Denver, CO: $1,820 to $1,930 (+$110/month)
• Seattle, WA: $2,150 to $2,280 (+$130/month)

These are approximate figures — actual amounts vary by exact location and PHA decisions.

Looking Ahead to FY2027

Based on current trends, expect continued increases for FY2027 (effective October 2026), though possibly at a slower pace as rent growth moderates. HUD will publish proposed FY2027 FMRs in August 2026.

→ Look up your area's 2026 payment standards