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Rent Comparability Study review

A substantive review of a Rent Comparability Study submitted for a Section 8 contract renewal, performed under Chapter 9 of HUD's Section 8 Renewal Policy Guide. Each review ends with a stated disposition and the corrections the study needs.

What the review covers

  • Screening and completeness. Appraiser qualifications, inspection, scenarios, and the items Chapter 9 requires in the study.
  • Comparable selection. Location, unit types, building type and age, and whether the comparables reflect the subject's market.
  • Adjustments. Gross and net adjustment levels, utility and amenity adjustments, and internal consistency across grids and scenarios.
  • Rent conclusions. Concluded rents by unit type, with the Small Area Fair Market Rent tests that determine whether HUD must commission its own study.
  • Disposition. Accept, accept with corrections, or reject, with a correction list the appraiser can work from.

Best for

Performance-Based Contract Administrators and HUD staff reviewing Section 8 renewal submissions.

Questions

Rent Comparability Study review, answered

Flat fee, quoted before work starts. Coverage in all 50 states and Puerto Rico.

What is a Rent Comparability Study?

An appraiser's study of market rents for the units in a Section 8 property, used to set rents when a project-based contract is renewed. Chapter 9 of HUD's Section 8 Renewal Policy Guide sets the requirements.

What happens if the study's rents are too high?

Chapter 9 sets tests against Small Area Fair Market Rents. When a study's rents exceed them, HUD commissions its own independent study before renewing at those rents. The review states whether that test is triggered.

How long does a review take?

Turnaround is quoted with the fee when the study is sent.

Get the quarterly outlook

Cap rates, CRE debt, and collateral risk from ARC's own sales data. Four emails a year.