Getting accurate data for determining rent reasonableness can be a challenge for PHAs. Information that is not up to date can result in inaccurate rents, jeopardize relationships with participating landlords, and, ultimately, cause compliance problems with HUD.
Calculating Rent Reasonableness for HCV
Getting the Right Comparable
We help PHAs get suitable comparables for unassisted units in the marketplace. We have worked with agencies throughout the country to establish comparisons to other units on the market, and we make sure the rents compare to Fair Market Rents (FMRs) and compare LIHTC and HOME-assisted units to LIHTC max rents, if necessary.
Rent comparisons are not one-size-fits-all.
Many rent reasonableness services rely solely on software algorithms. We ensure that all the data units in our comparisons are less than a year old, and we use all available categories required in HUD’s requirements. The voucher program rules for PHAs use nine categories for consideration: location, size, type, quality and age, amenities, housing services and maintenance, and utilities provided by the owner.
