Housing Choice Voucher Program
Rent Reasonableness
What is Rent Reasonableness?
HUD requires a rent reasonableness test be conducted on each unit and is essential to the successful operation of the S-8 program. Reasonable rent is defined as a rent to owner that is not more than rent charged:
- For a comparable units in the private unassisted market.
- For comparable unassisted units in the premises. Factors considered in each test are:
- Unit size (square footage)
- Age (year built)
- Quality (includes quality of workmanship)
- Unit type (single family, duplex, mobile home, etc.)
- Location (site and neighborhood, access to public services, etc)
- Amenities (carpet, ceramic floors, air conditioning, central heat, insulation, washer & dryer hook ups, etc)
- Housing services provided
- Maintenance provided
- Utilities (does the landlord furnish water, stove, refrigerator, etc.) The purpose of Rent Reasonableness is to assure that:
- A fair rent is paid for units selected for participation in the S-8 program, (the rent charged for assisted units may not exceed rents for unassisted units.
- The program does not have the effect of inflating rents in the community.
