HUD rent comparability studies are really used to determine the rent for HUD apartment units. The US department of housing and urban development is set to release a new set of guidelines that it hopes will assist appraisers in assisting the rent for the FHA insured multi family properties. They will work in conjunction with the HUD “Mark to market “program.

I must say that requirements for preparing HUD comparability studies are very heavy. The rent comparability studies require number of adjustments including following factors:

1. The number of bathrooms is the first thing which is seen while deciding the rent.
2. These second thing is number of bedrooms. You must have read lots of classified ads related to rent and you must have noticed these two points in it.
3. Another point which is very important is the square feet. You will definitely find it really interesting. The rent has been fixed according to the square feet the property captures. This has really been the main point which decides that what will be the rent.
4. Another thing which is very important is that how old the company is. I must say that the older the property will be lesser the interest rates will be. You will definitely find an old house to be available at low rates.
5. It is very important to note the condition of the property. If the condition is good, that is the bathrooms, electricity supply, swimming pools all are in good condition then you will definitely find the rate to be higher. However if the property is not in good condition then they will definitely be in very poor condition.
6. Appliances and amenities are the other two factors which are very important as far as the rent is concerned. Obviously the rent will be more if these two will be in large number.

The HUD comparability studies include a detailed spreadsheet for each floor plan in the apartment complex. When estimating the market rent for the apartment complex the market analyst has the freedom to see both the HUD comparability studies and recent arm length’s leases.

Since there is no arms length leases for the HUD rent the market analyst are basically dependent on the rent comparables adjusted to subject property.

Selecting the rent comparables is the most important thing. It is not really an easy things and the worry is compounded by the differences in section 8 properties and the market properties. I must say that the section 8 properties are in much better condition than the market properties. Hence you will definitely find it to be really a headache in deciding that what actually should be the rent.

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