The 2010 Fair Market Rents have been released by HUD for the Mobile MSA area.
Take a look
| Final FY 2010 FMRs By Unit Bedrooms | |||||
|---|---|---|---|---|---|
| Efficiency | One-Bedroom | Two-Bedroom | Three-Bedroom | Four-Bedroom | |
| Final FY 2010 FMR | $580 | $620 | $700 | $917 | $1,082 |
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
