Fair market rent
Encyclopedia
Fair Market Rent is a term in real estate
that indicates the amount of money that a given property would command, if it were open for leasing at the moment. The term is primarily used in the United States
.
Fair market rent is an important concept both in the Housing and Urban Development's ability to determine how much of the rent is covered by the government for those tenants who are part of Section 8
, as well as by other governmental institutions.
Fair market rent is sometimes used by appraisal
districts to determine tax rates.
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
that indicates the amount of money that a given property would command, if it were open for leasing at the moment. The term is primarily used in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Fair market rent is an important concept both in the Housing and Urban Development's ability to determine how much of the rent is covered by the government for those tenants who are part of Section 8
Section 8 (housing)
Section 8 of the United States Housing Act of 1937 , as repeatedly amended, authorizes the payment of rental housing assistance to private landlords on behalf of approximately 3.1 million low-income households...
, as well as by other governmental institutions.
Fair market rent is sometimes used by appraisal
Real estate appraisal
Real estate appraisal, property valuation or land valuation is the process of valuing real property. The value usually sought is the property's Market Value. Appraisals are needed because compared to, say, corporate stock, real estate transactions occur very infrequently...
districts to determine tax rates.