Rent Comparability Studies
A Rent Comparability Study (RCS) must be submitted with a Section 8 contract renewal. Because the RCS is submitted to HUD, it must meet specific requirements and guidelines. The Rent Comparability Studies are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and the supplemental standards of HUD Chapter 9. Market rents are defined and estimated in accordance with Section 9-7 through Section 9-13 of Chapter 9, and the reports are prepared in accordance with Section 9-14 through Section 9-16 of Chapter 9.
The purpose of the RCS is to determine market rents for each unit type in the subject property. This is achieved by selecting comparable market-rate properties and making detailed adjustments to the rents based on the differences between the subject property and the comparable properties. The RCS must be prepared by or signed off by a state certified General Appraiser licensed in the state in which the subject property is located.
Kinetic Valuation Group has completed numerous Rent Comparability Studies for projects located throughout the country. Selecting proper comparable properties is a critical aspect of a proper RCS. Characteristics that are considered when determining comparability include: similarity of bedroom type, unit size (square feet), building design, age, quality, amenities, and location to the subject property. Adjustments are made to the comparable property’s rent that allow for the differences; this is done by using the HUD 92273-S8 grids.