CY 2017 140% Thresholds for Rent Comparability Studies
Tuesday, December 20, 2016
In August 2015, the Department
issued a new Section 8 Renewal Policy Guide. Section 9-23 of the Guide provides instructions
for comparing the median rents as derived by the appraiser in a rent
comparability study (RCS) with Census Bureau estimates of the median rents in
the project’s zip code. Should the rents in the owner’s study exceed 140
percent of the median zip code rent threshold, then HUD would secure a third
party to create a RCS for comparison purposes. When the Department issued
the Guide, the median zip code rents as of December 2014 were also published.
HUD has recently published the new
median zip code rents and the 140 percent thresholds. Users can find
these new numbers under “What’s New” on http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8 .
The Census Bureau has updated their estimates of median rents and increased the
median rents above the previous high of $2,000 to a new high of over $4,000.
Staff and appraisers can find the instructions for comparing the numbers and
determining the final rent, should a HUD study be required in Section 9-23.
These numbers will be effective
for any RCS signed by the owner’s appraiser on or after February 11, 2017.