Your Guide to Rent Reasonableness
Get a quick explainer of rent reasonableness, why it matters, and how you can easily pass the test using Market Rent Reports.
What is Rent Reasonableness?
Under HUD rules, Housing Agencies must ensure that rents charged for Housing Choice Voucher (HCV) units are reasonable compared to similar unassisted units in the same market area.The rent you request must line up with what the local market charges for comparable housing and must adhere to HUD and your local Housing Agency’s guidelines.
Why It Matters
- HUD requirement: PHAs cannot approve a lease if the rent is not reasonable.
- Protects owners and tenants: Keeps pricing fair and the program sustainable.
- Speeds up approvals: Reasonable rents are more likely to be approved quickly.
How PHAs Evaluate Rent Reasonableness
PHAs compare your unit to similar, unassisted units using nine HUD evaluation factors:
1. Location
2. Unit type (apartment, single-family, duplex, etc.)
3. Unit size (square footage, number of bedrooms/bathrooms)
4. Quality of construction
5. Age of the unit
6. Unit condition
7. Amenities (appliances, air conditioning, parking, etc.)
8. Housing services provided
9. Utilities included in the rent
Housing Agencies also check against their own payment standards and policies. This is why we require you to select a Housing Agency when running a Market Rent Report—to improve your chances of having your rent approved by that particular agency.
How Market Rent Reports Help
AffordableHousing.com’s Market Rent Reports simplify this process by:
- Pulling local comparable units that match your property.
- Assessing each of the nine HUD factors.
- Incorporating your PHA’s specific settings and payment standards.
This gives you a clear picture of what rent is most likely to be approved by your Housing Agency, so you can set a competitive, reasonable rent up front. If your rent is assessed as likely not reasonable, we’ll show you the estimated fair market rent, so you can adjust your request and enhance your odds of approval. The report includes all the comps and details used in the assessment, so you can print it out and submit it to your Housing Agency to help support your asking rent.
Tips for Property Owners
- Use Market Rent Reports before submitting an RFTA (Request for Tenancy Approval) to avoid delays and back-and-forth rent negotiations.
- Price competitively by comparing your unit to similar properties in your area.
- Stay realistic: A rent request well above market averages is unlikely to pass.
To start your next report, go to your Rent Reports tab in your Premium dashboard. Happy renting!
