HUD HCV Guidebook § 5

The following terms are used in this Chapter:
Assisted Units include units occupied by voucher program participants, as well as units assisted under a
federal, state, or local government program. Units may also be considered “assisted” due to rent control or
housing conversion actions. The PHA must exclude “assisted” units from rent comparisons in determining
rent reasonableness.
Fair Market Rent (FMR) is the rent, including the cost of utilities (except telephone), as established by HUD for
units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately

21
   24 CFR 985.3(b); Notice PIH 2003-12: Determination of Rent Reasonableness – Revision of Request for Tenancy
Approval, Form HUD-52517
22
   24 CFR 985.3(b)
23
   24 CFR § 982.507(a)(2)(ii); PIH Notice 2018-01 (HA): Guidance on Recent Changes in Fair Market Rent (FMR),
Payment Standard, and Rent Reasonableness Requirements in the Housing Choice Voucher Program

Rent Reasonableness                                                                                            10

owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable
amenities. See periodic publications in the Federal Register in accordance with 24 C.F.R. Part 888.
Jurisdiction is the area in which the PHA has authority under state and local law to administer the program.
Reasonable Rent is rent to owner that is not more than rent charged:
        1. For comparable units in the private unassisted market; and
        2. For comparable unassisted units in the premises.

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Exhibit 1: Sample Form – Survey for Unassisted Rental Units

Date of Data Collection: _________________         Name of Data Collector: _________________
Unit Location:
Name of Building (if any):       _________________________
Address of Unit/Building:        _________________________
Owner/Manager Information: ____Owner               _____Mgmt. Company           _____On-Site
Name:            ________________________________
Address:         ________________________________           Phone: _______________________________
Building Type:
High-rise (9+ stories): ______            Elevator? _____yes          _____no
Mid-rise (5-8 stories): ______            Elevator? _____yes          _____no
Garden (1-4 stories):   ______            Elevator? _____yes          _____no
Townhouse:              ______
Duplex:                          ______
Single Family House:    ______
Unit Sizes and Rents:
   No. Bedrooms              No. Bathrooms     Starting Rent *        Square Feet           No. of Units   No. Vacant

Total

* Starting rent is the market-rate rent that would be charged if the unit became available today. If the building has subsidized
 units, be sure that the starting rent recorded is for the unsubsidized, market-rate units.
Unit Amenities Provided by Owner:
Central A/C:            ___yes ___no               Window A/C Units:            ___yes ___no
Carpeting:              ___yes ___no               Dishwasher:                  ___yes ___no
Garbage disposal:       ___yes ___no               Washer/dryer:                ___yes ___no
W/D connections:        ___yes ___no               Other: (specify)             ___yes ___no
                                          (e.g., balcony, patio, private fenced yard)
Are there differences in the rent charged for units of the same bedroom and bathroom size, depending upon, for example, unit
location (balcony vs. patio, inside unit vs. outside unit)? Please explain.
_____________________________________________________________________________________

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 Utility Information to Calculate Gross Rent:
                          Paid or Provided By:                     Fuel Source
 Utility                  Owner               Tenant               Gas                  Electric            Oil
 Heat
 A/C
 Hot Water
 Cooking
 Electric
 Water/Sewer
 Garbage Pick-up
 Stove
 Refrigerator

Building Age:                Year building built: ________       Year last major rehab completed: ________
Quality: Check the description that best applies;
_____       A. Newly constructed or completely renovated.
_____       B. Well maintained and/or partially renovated.
_____ C. Adequate but some repairs may be needed soon. Some minor maintenance may be needed. No renovation since
construction.
Building Facilities:
Playground:                          ___yes ___no                Laundry Facilities:         ___yes ___no
Covered/Garage Parking: ___yes ___no                   Off-Street Parking:           ___yes ___no
Storage Outside Unit:                ___yes ___no                Community Room:             ___yes ___no
Wireless Internet Included:          ___yes ___no
Management and Maintenance Services (if applicable):
Is there on-site: Management staff?           _____yes           _____no
                             Desk service?             _____yes            _____no
                             Maintenance staff?        _____yes            _____no
Are there other management or maintenance services available, such as a security guard or janitorial services?
_______________________________________________________________________________________
Neighborhood/Location Characteristics:
What is the nearest public transportation?_________________ How many blocks away?____________
What is the nearest cross street to the unit? _________________    Please note any special features of the building, unit,
grounds, location or neighborhood that might help the Program Manager/Market Analyst compare this unit and its rents to
other units in the area: _________________________________________________________________
Other Information:
How many units are accessible for persons with disabilities? _________ What bedroom size? ____
How does the rent for accessible units differ from rent charged for regular units?
_____________________________________________________________________________________
Is occupancy limited to a particular clientele (elderly, persons with disabilities)? If yes, who?
___yes ___no ________________________________________________________________________
Are there subsidized units in the building? ___yes ___no If yes, how many? ____________________
Does the owner accept housing choice vouchers?         ___yes ___ no

Rent Reasonableness                                                                                                     13

Exhibit 2: Sample Form – Rent Reasonableness Data for Program Unit
                                  (To be completed as part of the Unit Inspection)

Date of Inspection: ___________________                  Inspector's Name: ___________________
Unit Location:
Name of Building (if any):       _________________________
Address of Unit/Building:        ____________________________________________________
Building Type:
High-rise (9+ stories): ______          Elevator? _____yes       _____no
Mid-rise (5-8 stories): ______          Elevator? _____yes       _____no
Garden (1-4 stories): ______            Elevator? _____yes       _____no
Townhouse:              ______
Duplex:                 ______
Single Family House: ______
Unit Amenities Provided by Owner:
Central A/C:            ___yes ___no            Window A/C Units:          ___yes ___no
Carpeting:              ___yes ___no            Dishwasher:                ___yes ___no
Garbage disposal:       ___yes ___no            Washer/dryer:              ___yes ___no
W/D connections:        ___yes ___no            Other: (specify)           ___yes ___no
                                                (e.g., balcony, patio, private fenced yard)
Utility Information to Calculate Gross Rent:
                    Paid or Provided By:                   Fuel Source
 Utility            Owner              Tenant              Gas                 Electric      Oil
 Heat
 A/C
 Hot Water
 Cooking
 Electric
 Water/Sewer
 Garbage Pick-up
 Stove
 Refrigerator

Building Age:          Year building built: ________     Year last major rehab completed: ________

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Building Facilities:
Playground:                      ___yes ___no             Laundry Facilities:     ___yes ___no
Covered/Garage Parking:          ___yes ___no             Off-Street Parking:     ___yes ___no
Storage Outside Unit:            ___yes ___no             Community Room:         ___yes ___no
Wireless Internet Included:      ___yes ___no

Management and Maintenance Services (if applicable):
Is there on-site:     Management staff?     _____yes         _____no
                      Desk service?         _____yes         _____no
                      Maintenance staff?    _____yes         _____no
Are there other management or maintenance services available, such as a security guard or janitorial services?
__________________________________________________________________________________________
__________________________________________________________________________________________

Other Information:
Is the unit accessible for persons with mobility impairments?
Is the unit accessible for persons with vision or hearing impairments?
Is the unit designed or adapted with other specific features to make it accessible to persons with disabilities?

Are there differences in the rent charged for units of the same bedroom and bathroom size, depending upon, for
example, unit location (balcony vs patio, inside vs outside unit)?

Location Features:
What is the nearest public transportation?        _________________ How many blocks away?
_________________
What is the nearest cross street to the unit?     _________________
Please note any special features of the building, unit, grounds, location or neighborhood that might help the
Program Manager/Market Analyst compare this unit and its rents to other units in the area:
_____________________________________________________________________________________________

Overall Quality Rating:
_______                 A. Newly constructed or completely renovated.
_______                 B. Well maintained and/or partially renovated.
_______                 C. Adequate, but some repairs may be needed soon. Some minor maintenance may be
                        needed. No renovations since construction. (Meets HQS standards.)

______________________________________________________
Signature of Inspector           Date

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Exhibit 3: Sample Comparison of Program and Comparable Units
I certify that based upon information available to this office, the requested Contract Rent / _____is/ _____is not/
reasonable in accordance with program requirements.

       Comparability Category        Program Unit       Comparable #1      Comparable #2     Comparable #3
 Date data gathered
 Address
 Rent to Owner
 Utility Allowance
 Gross Rent
 Census tract
 Neighborhood
 Unit Type
 Number of bedrooms
 Number of bathrooms
 Accessible
 Year built
 Date of Most Recent
 Remodeling
 Quality
 Amenities:
  Central Air Conditioning
  Window Air Conditioning
  Carpeting
  Dishwasher
  Garbage disposal
  Washer/dryer provided
  Washer/dryer hookups
  Other
 Facilities:
  Playground
  Covered/garage parking
  Off-street parking
  Laundry facility
  Storage outside the unit
  Pool
  Community room
  Day care
  Other
 Services:
  On-site management
  Security guard(s)
  Desk service
  Security system
  On-site maintenance staff
  Other

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 Nearest public transportation
 Nearest shopping
 Notes:

Name of PHA ______________________________________
Signature__________________________________________   Title________________ Date________________

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Exhibit 4: Suggested Format – Rent Reasonableness Checklist
I certify that based upon information available to this office, the requested Contract Rent /
_____is/ _____is not/ reasonable in accordance with program requirements.
    Category of Comparison      Program       Comparable #1 Comparable #2 Comparable #3
                                Unit
  Address

 Census tract
 Neighborhood
 Number of bedrooms
 Published FMR
 Payment Standard
 Unit type
 Number of bathrooms
 Square feet
 Location: Accessibility to
 Services (List)

Quality
 Amenities (List)

Facilities (List)

Date built
 Management and
 Maintenance Services (List)

Rent to owner
 Utility allowance
 Gross rent
 Notes on Comparability

Name of PHA ______________________________________
Signature__________________________________________ Title________________
Date___________

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