Valuation & Rental Yield • 6 min read • Last Updated November 2, 2026

HUD Small Area Fair Market Rent (SAFMR) by ZIP Code: How Investors Underwrite 0–4 BR Rental Yield

Compiled & Verified by: FullPropertyReport Environmental & Market Research Team

Primary Sources: U.S. EPA ECHO/RCRA/SDWIS • FEMA NFHL/NRI • USDA SSURGO • FHFA HPI • HUD SAFMR • U.S. Census

Learn how real estate investors use official U.S. HUD FY2025 Small Area Fair Market Rents (0-BR Studio to 4-BR Home) and Census median home values to calculate gross rental yield by ZIP code.

Why ZIP-Code HUD Small Area Fair Market Rents Beat Metro-Wide Averages

Traditional Fair Market Rents (FMRs) assign a single rent benchmark across an entire metropolitan statistical area (MSA), masking huge neighborhood differences. U.S. Department of Housing and Urban Development (HUD) Small Area Fair Market Rents (SAFMRs) calculate separate rent schedules for every 5-digit ZIP code across 0-Bedroom (Studio), 1-Bedroom, 2-Bedroom, 3-Bedroom, and 4-Bedroom units.

Calculating Estimated Gross Rental Yield Before Submitting an Offer

Every FullPropertyReport 13-section dossier pairs the ZIP-level HUD SAFMR schedule against the U.S. Census ACS 5-Year Median Owner-Occupied Home Value (DP04_0089E) to compute estimated annual gross rental revenue and gross cap yield (%) for 0–4 bedroom configurations.

Frequently Asked Questions

How is estimated gross rental yield calculated in the report?

Estimated gross rental yield is computed by dividing the annualized HUD Small Area Fair Market Rent (monthly SAFMR × 12) for each bedroom tier by the local U.S. Census ACS median owner-occupied property value.

Are HUD Small Area Fair Market Rents used for Section 8 Housing Choice Vouchers?

Yes. Public Housing Authorities in designated metropolitan areas use HUD ZIP-code SAFMR schedules to set Housing Choice Voucher payment standards up to 110% of the published ZIP benchmark.