New research from LendingTree shows just how much more expensive renting has become across the country. Fair Market Rents (FMRs), which the federal government uses to set housing assistance levels, have risen sharply between fiscal year 2021 and fiscal year 2026, reflecting a rental market still feeling the effects of post-pandemic inflation, shifting migration patterns, and ongoing housing shortages.
Fair Market Rent represents the estimated median rent for modest housing in a metro area, including basic utility costs. These figures help determine the amount of federal assistance provided to low-income renters, making them a key tool in measuring rental affordability.
According to LendingTree, FMRs for one-bedroom units rose an average of $457, or 40.7%, across the nation’s 50 largest metros. Two-bedroom units increased by an average of $505, or 37.3%, over the same period. These increases highlight how fast rental prices have escalated for both new tenants and those renewing leases.
Matt Schulz, LendingTree’s Chief Consumer Finance Analyst, said the rent hikes are stretching already thin budgets.
“Many households don’t have extra room in their finances,” Schulz said. “A few hundred dollars more in rent each month can make a huge difference.”
Rents Rose in All 50 Major Metros
LendingTree found that all 50 of the country’s largest metro areas saw Fair Market Rents increase between FY 2021 and FY 2026. Some cities posted extremely large jumps, especially in places where demand surged during the pandemic.
Top Metro Areas for One-Bedroom FMR Increases
- New York, NY: +$854
- San Diego, CA: +$817
- Miami, FL: +$764
Top Metro Areas for Two-Bedroom FMR Increases
- Miami, FL: +$885
- San Diego, CA: +$877
- New York, NY: +$857
These metros already had tight rental markets before the pandemic, but demand spikes and limited supply pushed prices even higher. Miami, in particular, saw rapid population growth as remote workers and retirees moved in from other states, putting heavy pressure on rental availability.
Where Rent Growth Was the Smallest
While rents increased everywhere, a few metros experienced more modest gains.
San Francisco recorded the smallest increases of all major markets:
- One-bedroom FMR: +$54
- Two-bedroom FMR: +$51
However, even with slower growth, San Francisco remains one of the most expensive rental markets in the country, with two-bedroom Fair Market Rents topping $3,600.
Other metros with relatively smaller FMR increases included:
- Birmingham, AL
- Oklahoma City, OK
- San Antonio, TX
- St. Louis, MO
These markets saw increases ranging between $264 and $326, which, though smaller than coastal markets, still add meaningful pressure on renters.
Why Fair Market Rents Have Jumped So Much
LendingTree’s researchers point to several major forces behind the steep increase in FMRs:
1. Rent Inflation After the Pandemic
The period from 2021 to 2023 saw some of the fastest rent growth in decades as demand surged and supply lagged.
2. Migration Trends
Millions of renters moved during and after the pandemic, often relocating to areas that became newly popular, such as Florida, parts of Texas, and the Mountain West. This migration put upward pressure on rents in places that were not prepared for the sudden demand.
3. Long-Term Housing Supply Shortages
The U.S. has been under-building housing for more than a decade. As a result, even modest increases in demand lead to rapid rent increases because supply cannot catch up fast enough.
These factors combined to lift Fair Market Rents across nearly every region, squeezing household budgets and making federal housing support more expensive to administer.
The Bottom Line
The sharp rise in Fair Market Rents since 2021 underscores how difficult the rental market has become for millions of Americans. Even in cities where increases were smaller, renters are still paying considerably more than they were just a few years ago. As households continue struggling with affordability, policymakers and housing advocates are watching these trends closely. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
