usc 12 § 1747c
Rent schedules (BANKS AND BANKING (12 U.S.C.))
Operative Text
The Secretary shall require that the rents for the dwellings in any project insured under this subchapter shall be established in accordance with a rent schedule approved by the Secretary, and that the investor shall not charge or collect rents for any dwellings in the project in excess of the appropriate rents therefor as shown in the latest rent schedule approved pursuant to this section. Prior to approving the initial or any subsequent rent schedule pursuant to this section, the Secretary shall find that such schedule affords reasonable assurance that the rents to be established thereunder are (1) not lower than necessary, together with all other income to be derived from or in connection with the project, to produce reasonably stable revenues sufficient to provide for the payment of the operating expenses, the minimum annual amortization charge, and the minimum annual return; and (2) not higher than necessary to meet the need for dwellings for families of moderate income.
Under 12 U.S.C. § 1747c, the Secretary of Housing and Urban Development must approve a rent schedule for any housing project insured under this subchapter, and property investors are prohibited from charging rents above the amounts listed in the most recently approved schedule. Before approving any initial or updated rent schedule, the Secretary must determine that the proposed rents are high enough to cover operating expenses, required amortization charges, and a minimum return, but not so high as to place the housing beyond the reach of moderate-income families. This provision creates a dual floor-and-ceiling standard that balances financial viability of the project against affordability for residents.
Plain English — not legal advice.
Operators of projects insured under 12 U.S.C. § 1747c are generally expected to obtain and maintain a current Secretary-approved rent schedule before setting or adjusting rents. A compliant operator charges rents that do not exceed the figures shown in the latest approved schedule and seeks formal approval for any rent schedule updates rather than implementing changes unilaterally. Keeping documentation of the approved schedule on file and aligning all rent charges to it are practices consistent with the requirements of this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 12 U.S.C. § 1747c, tenants living in Secretary-insured projects have a right not to be charged rents above those listed in the most recently approved rent schedule. If a tenant believes their rent exceeds the approved schedule, that discrepancy may be relevant as a defense in a rent dispute or as the basis for a complaint to the relevant HUD office or a local tenant-rights organization. Tenants can request information about the applicable approved rent schedule through HUD or by consulting a tenant advocacy group familiar with federally insured housing programs.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.