Rent Reasonableness. Rent reasonableness means the total rent charged for a unit must be reasonable in relation to the rents being charged during the same time period for comparable, non-luxury units in the private unassisted market. Rent reasonableness is performed by one of the following 🗸 Performing a rental market analysis/study in the rental market where the rental is located in. The market analysis/study must be performed, at a minimum, annually and no more than quarterly. 🗸 Reviewing comparable units advertised for rent as detailed below When determining rent reasonableness, grantees must consider the following characteristics of the units to ensure they are comparable: location, quality, size, type, amenities, housing services, maintenance, and utilities included in the rent. Though units may have different features, they should be relatively comparable in based on their characteristics and amenities. For example, one rental may be slightly larger but does not include utilities in the rent. The slightly smaller rental with utilities included could be comparable in value and used to determine rent reasonableness. Verification that the rent charged for this units do not exceed rents charged for other comparable units owned (for example, the landlord would document the rents paid in other units). Grantees must document rent reasonableness using the Rent Reasonableness Worksheet and attach all applicable backup documentation. For more information, see HUD’s guide at: xxxxx://xxxxx.xxxxxxxxxxx.xxxx/resources/documents/CoC- Rent-Reasonableness-and-FMR.pdf.
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