rent reasonableness

LHA uses the following criteria to determine the market value of rent:

Base Rent based on year built, number of bedrooms, and type of unit (apt, duplex or house)

Amenities can add or deduct to the value of the base rent

*  Location                                                           *  Cable                                                *  Security
*  Dishwasher, Disposal, Microwave             *  Common area                                *  Owner paid utilities
*  Drapes/Blinds                                                *  Add’l bedroom                                 *  Range/ Refrigerator       
*  Washer/Dryer                                                 *  Paint                                                  *  Cleanliness
*  Deck, Patio, Porch                                         *  Parking                                             *  Basement
*  Fireplace/Fitness                                           *  Bathrooms                                      *  AC     
*  Fence                                                               *  Storage, shed, garage                  *  Condition of Unit
*  Size                                                                  *  Ceiling fans                                      *  Level of apartment

Information about three units that are comparable to the unit chosen by the Housing Choice Voucher tenant.

When LHA receives a Request for Inspection and Unit Information (RIUI) Form, the dollar amount of the proposed rent is reviewed to determine that:

                1. the rent does not exceed rents charged by the owner for comparable unassisted units; and

                2. the rent is reasonable in relation to rents charged by other owners for comparable units.

For apartments and duplexes:  An owner may present LHA with a current lease of an unassisted unit that is the same as one chosen by the Housing Choice Voucher tenant to show the rent being charged is at market value.

Can a tenant pay the difference if the rent exceeds the Payment Standard?

Yes, only if the contract rent meets the rent reasonableness test determined by the LHA Inspector.  LHA will always notify the owner and the tenant in writing of the tenant’s portion of rent.  The tenant should never pay more for rent than on the written notices and the owner can not ask for more rent than on the written notices.

Example:  Contract rent asked for by the owner is $700 for a 2 bedroom unit.  The LHA Inspector has determined the rent reasonableness to be $650.  The tenant will pay 27% of their income towards rent plus anything over the $644 Payment Standard.  The Housing Authority will use $106 for utilities which will be added to the contract rent ($650 + $106 = $756).  The tenant in this scenario can pay the difference ($756 -$644 = $112).  Total tenant payment would be $112 plus 27% of the tenant’s income because the value of the unit exceeds the Payment Standard of $644 and the unit meets the rent reasonable test.

No, if the contract rent asked for by the owner does not meet the rent reasonableness test as determined by the LHA Inspector.

Example:  Contract rent asked for by the owner is $700 for a 2 bedroom unit.  The LHA Inspector determines the value of the unit at $650.  The tenant CAN NOT pay the difference of the $50 between the contract rent and the rent reasonable test.

Section 8 Existing Utilty Allowances - Effective February 1, 2010