Rent Increases - HUD Tenants

Are you a landlord who has tenants on one of the HUD Voucher Programs? Curious as to how much you can increase the rent for renewing tenants? Well this posting is for you. At the beggining of each fiscal year, HUD publishes the Annual Adjustment Factors (AAFs). The AAFs are used to determine how much HUD will authorize annual rent increases for current tenant contracts. The AAFs are determine by region and MSA's within regions. A table is published to use for calculating rent increases.

To calculate rent increase, simply multiply the Increase Factor by the current contract rent. For example, a house rented in Houston, TX at $1100 a month has an increase factor of 1.034 for a home with the highest cost utility included. The new rent is $1100 x 1.034 = $1137.

To increase rent, a 60 day notice is typically required for HAP contracts. If your current tenants lease is coming due, get those notices out and bump up your rents!

Sources:
http://www.huduser.org/datasets/aaf.html
http://www.huduser.org/datasets/aaf/FY2007_SCHEDULE_C_REV.doc

Fair Market Rents - What Are They?

Landlords who rent or are considering renting properties to tenants who receive government assistance through the HUD Section 8 voucher programs, should know what to expect in terms of market rent for your property. HUD publishes a Fair Market Rent schedule each year for every State.

What are Fair Market Rents?
Fair Market Rents (FMRs) are primarily used to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts, to determine initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program (Mod Rehab), and to serve as a rent ceiling in the HOME rental assistance program. The U.S. Department of Housing and Urban Development (HUD) annually estimates FMRs for 530 metropolitan areas and 2,045 nonmetropolitan county FMR areas. By law the final FMRs for use in any fiscal year must be published and available for use at the start of that fiscal year, on October 1.

Here is a link to the 2008 Fair Market Rent schedule.

Fair Market Rents defined


Sources:
http://www.huduser.org/datasets/fmr.html

Section 8 Inspection Forms

For those of you who rent properties to Section 8 voucher recipients, here are a few forms for your reference:


Inspection Report Form

Expired Inspection form. Contains details about how properties are rated
5280a