What is Rent Reasonableness?
- Rent Reasonableness (RR) is the HUD mandated process that housing authorities use to ensure that HCV program participants pay a “reasonable” amount of rent to owners
- “Reasonable” is defined as what a knowledgeable consumer will pay for rent in a particular rental market
Goals
- To assure that program participants pay rents that are comparable for the market
- To assure that program rents do not adversely affect the jurisdictional rental market
- To ensure effective disbursement of agency HAP dollars
Rent Reasonableness is Required...
- Before execution of a HAP Contract
- Before granting a requested increase in rent to owner
- If there is a 5% FMR decrease
- Whenever HUD requires
Rent Comparability
The Rent Reasonableness assessment establishes that the proposed Owner Rent is:
- Comparable to similar unassisted units in the marketplace
- Comparable to similar unassisted units on the premises of large multi-family properties
- The Nelrod Company, CMHA's Rent Reasonableness provider, is pleased to provide an opportunity for Hamilton County owners to add their unassisted rental market comparables to CMHA's comparables database.
- The rental information must be for market rate unassisted units.
- All information will be verified by Nelrod staff.
- All decisions regarding adding comparables are at the discretion of Nelrod staff. CMHA cannot guarantee that the information you submit will be added.
Click here to add rental market comparables for unassisted units. (The User ID is user and the password is user)
Post Rent Reasonableness Options
An owner is not obligated to lease a unit that CMHA determines is not “rent reasonable”. Owners may:
- Decline to lease unit to HCV participant -or-
- Choose to lower the rent to meet rent reasonableness guidelines