We pulled the FY2027 and FY2026 figures for 20 metros across our states, plus two Michigan areas we covered today, straight from HUD User on November 10, 2026. No forecasts, no averages from third parties: just HUD's own table for each county, side by side.

What HUD Changed

HUD rebuilt the base for FY2027 on newer survey data, so some markets jumped and others gave back last year's gains.

HUD's methodology page says the FY2027 base rent comes from 2020 to 2024 five year American Community Survey estimates of two bedroom gross rents, adjusted by a recent mover factor that is floored at one, then by inflation and trend factors. When the newer survey window shows softer rents than the older one did, the benchmark can fall even in a market where asking rents feel flat. That is what happened in a cluster of Midwest, Southern and Western metros this year.

Same house, same payment, new HUD number. That alone can move a screen from 1.00 to 0.92 or to 1.10.

Where Rents Rose

The biggest three bedroom gains in our sample were in northeastern Pennsylvania, Maryland and Colorado, and Charleston, West Virginia held flat.

Michigan was a bright spot too. The Flint area's three bedroom figure rose from $1,272 to $1,391 and the Grand Rapids area's from $1,980 to $2,113; we break Grand Rapids down in our Grand Rapids rental property post. State by state rules for these markets are on our Pennsylvania, Maryland, Colorado, Wyoming, Alabama, Delaware, Montana, West Virginia and Michigan DSCR pages.

Where Rents Fell

Twelve of the 20 metros in our sample saw the three bedroom benchmark fall by more than a dollar, led by Madison, Fayetteville, Davenport, Anchorage and Albuquerque.

The Madison drop is not limited to the three bedroom: its two bedroom figure went from $1,694 to $1,565. Rules for these states are on our Wisconsin, Arkansas, Iowa, Alaska, New Mexico, Louisiana, South Carolina, Kansas, Hawaii, Oklahoma, Washington and Mississippi DSCR pages.

Run the DSCR on your deal

What a Rent Change Does to the Ratio

A rent change moves the ratio by the same percentage, because the payment on top of the fraction does not move.

DSCR is monthly rent divided by the full monthly payment: principal and interest, taxes, insurance and any HOA. If the payment stays put and the rent number drops 8.5%, the ratio drops 8.5%. Take a deal you screened last year with a comfortable cushion, a 1.25 ratio on the HUD figure. On FY2027 numbers that same deal screens at about 1.37 in Scranton, 1.33 in Baltimore and 1.30 in Denver, but about 1.14 in Madison and 1.16 in Fayetteville. Still above 1.00, yet a lot less cushion than you thought you had.

The payments in that table are simply last year's HUD rent divided by 1.25, so you can see the effect of the rent change alone. For a real payment, use Freddie Mac's 30 year fixed average of 7.18% from November 5, 2026 only as a reference (it is a conventional loan average, not a DSCR rate and not a rate we are quoting) or plug your quote into the calculator above.

Buying Versus Refinancing

On a purchase, the new benchmark changes what you can pay; on a refinance, it changes how your existing rental screens before the appraisal.

If you are buying in a market where the benchmark fell, lower your top price or plan on interest only, which cuts the payment while the rent number stays the same. If you are refinancing a rental you already own, the lease in place matters more than any benchmark, so a signed lease at market rent is your best friend. In a market where the benchmark rose, a refinance that missed last year may now screen better, which is worth a fresh look, especially if you want cash out for the next deal. Our 1% rule and DSCR post shows how much rent a price needs at today's rates.

How to Use HUD Rents Well

Use HUD's figure as a first screen and a sanity check, then replace it with real comps before you commit.

The Fair Market Rent is built from survey data for a whole metro or county, so it smooths over the differences between neighborhoods, house sizes and condition. A newer three bedroom in a strong school area can lease well above it; a dated one on a busy road can lease well below it. When the benchmark moved this year, ask whether your street moved with it. Also match the bedroom count honestly: a three bedroom with a basement room that is not a legal bedroom screens against the two bedroom figure, and in Madison that is $1,565, not $2,047. The gap between bedroom sizes is often bigger than the change from one year to the next. For the other big line in the payment, see our guide to DSCR loan insurance.

The Program Terms

Our DSCR terms give you room when the rent number tightens.

• DSCR as low as 0.50, so a deal that slips below 1.00 is not automatically out.
• Interest only: ten years interest only on a 40 year term, or a 30 year term with interest only, up to 70% LTV on a purchase and 65% on a cash out.
• Cash out up to 80% LTV with no ownership seasoning.
• No reserves under $1 million and under 75% LTV, with no asset sourcing, no large deposit sourcing and no seasoning.
• 100% gift for the down payment, closing costs and reserves.
• First time investors welcome: no primary residence and no VOR required. Loans up to $5 million in 35 states, including Arizona, where our Arizona DSCR page has the local numbers.

Self employed and want to buy a home to live in instead? Our bank statement loans page covers that path, and our loan programs page lists the rest.

Where It Goes Wrong

It goes wrong when an investor treats HUD's number as the rent the lender will use.

My Screening Checklist

1. Look up your county on HUD User for FY2027 and note the bedroom count that matches the house.
2. Compare it to FY2026 so you know which way the benchmark moved.
3. Pull three real comps for the street and bedroom count.
4. Build the full payment with real tax and insurance quotes.
5. Divide the lower rent by the payment. That is your honest screen.
6. Send us the address. We run it the way the lender will.

Sources

All sources checked November 10, 2026. Data changes, so confirm before you rely on it.

1. HUD User, FY2027 Fair Market Rents, county summaries (methodology and FY2027 vs FY2026 by bedroom). 3 bed FY2026 to FY2027: Lackawanna PA $1,631 to $1,786; Baltimore city MD $2,358 to $2,509; Denver CO $2,734 to $2,846; Laramie WY $1,633 to $1,700; Madison AL $1,690 to $1,735; New Castle DE $2,170 to $2,216; Yellowstone MT $1,951 to $1,983; Kanawha WV $1,325 to $1,324; Dane WI $2,236 to $2,047 (2 bed $1,694 to $1,565); Washington AR $1,873 to $1,739; Scott IA $1,498 to $1,396; Anchorage AK $2,268 to $2,117; Bernalillo NM $2,036 to $1,902; Caddo LA $1,458 to $1,380; Richland SC $1,623 to $1,546; Sedgwick KS $1,444 to $1,382; Honolulu HI $3,674 to $3,520; Comanche OK $1,392 to $1,338; Spokane WA $2,088 to $2,047; Hinds MS $1,544 to $1,536; Genesee MI $1,272 to $1,391; Kent MI $1,980 to $2,113. Base rent from 2020 to 2024 ACS, recent mover factor floored at one
2. Freddie Mac Primary Mortgage Market Survey. 30 year fixed average 7.18% as of November 5, 2026 (reference only)
3. Pillar Mortgage Group DSCR program terms (DSCR_FACTS). 0.50 floor, interest only terms and LTV limits, 80% cash out, reserves lines, 100% gift, first time investors, $5 million, 35 states

Frequently asked questions