In a sign that renting has become more expensive in much of the country, a LendingTree study shows that Fair Market Rents for one- and two-bedroom residential units have risen dramatically since 2021.
Fair Market Rent is an estimate by the government of the median rent, including utilities, for modest rental housing in a specified area, used primarily for federal housing assistance programs.
The study said that on average, one-bedroom Fair Market Rents in the nation’s 50 largest metro areas are up $457 (or 40.7%) between fiscal-years 2021 and 2026. Meanwhile, two-bedrooms climbed an average of $505 (or 37.3%) during that time frame, the study said.
LendingTree said those increased costs show how quickly and drastically the rental market has shifted for new and renewing tenants.
“These rent increases can cause a massive strain on consumers,” said Matt Schulz, LendingTree Chief Consumer Finance Analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life.” “If your income is rising at the same time your rent is, maybe that extra expense is no big deal. However, so many Americans’ financial wiggle room is tiny, even in the best of times, so having to carve out hundreds of extra dollars to pay rent each month can be a big deal.”
FMRs Grew in Each of the Nation’s 50 Largest Metros
The study noted that in each of the 50 largest U.S. metro areas, Fair Market Rents for one- and two-bedroom housing units grew from fiscal-year 2021 to fiscal-year 2026 (which began Oct. 1, 2025).
On average, FMRs for one- and two-bedroom units grew by $457 and $505, respectively, LendingTree said. The research showed that FMRs for one-bedroom units rose by the largest dollar amounts in New York, San Diego and Miami. In these metros, Fair Market Rents for one-bedroom units rose by $854, $817 and $764, respectively, from FY 2021 to FY 2026, LendingTree said.
Fair Market Rents for two-bedroom units also increased the most in Miami, San Diego and New York. From FY 2021 to FY 2026, FMRs in those metro areas rose by $885, $877 and $857, respectively.
San Francisco recorded the smallest Fair Market Rent increases among major metros, LendingTree said. From FY 2021 to FY 2026, its one-bedroom FMR rose by just $54 to $2,977, while two-bedroom FMRs rose by $51 to $3,604.
LendingTree said that despite the low growth in prices, these remain among the nation’s most costly rents.
The study said that outside of San Francisco, four metros ranked in the bottom five for Fair Market Rent increases across one- and two-bedroom units: Birmingham, Alabama, Oklahoma City, San Antonio, Texas, and St. Louis, Missouri.
From FY 2021 to FY 2026, rents in these areas rose between $264 and $326.
LendingTree said the increase in FMRs between FY 2021 and FY 2026 reflects a combination of factors: elevated rent inflation in the years after the pandemic, shifts in migration and demographic trends that increased housing demand, and a longstanding housing supply shortage.
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