Industry Notes: HUD Wants To Look At Your RCS In A Whole New Way

Monday, March 10, 2014

Charge: Your RCS rents are higher than HUD-generated market rent estimates

Heads up: The U.S. Department of Housing and Urban Development (HUD) may soon have a new benchmark for assessing rent figures in your Rent Comparability Study (RCS) when they exceed 110 percent of the median gross rent by zip code.

On Feb. 28, HUD posted a draft revised Section 8 Renewal Policy Guide for public comment. The major revisions focus on Section 9-23 of the Guide, which addresses when rents in an owner’s RCS are greater than 110 percent of the Fair Market Rent (FMR) in rural areas or the Small Area Fair Market Rent (SAFMR) in urban areas.

Problem: Research has shown that market rent estimates (determined by an owner’s RCS) "are...


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