Rent Reasonableness

Rent Reasonableness

PHAs must ensure that the rent charged by the owner is reasonable for the unit. This is called Rent Reasonableness. Ensuring rent reasonableness is very important. If a PHA approves rents that are too high, the program funds are wasted. If rents are too low, the owners do not have incentive to participate in the program, or they participate only with their lowest-cost and lowest-quality units. In addition, families may be inappropriately restricted in where they can live. 

Your PHA will use many different factors to determine what amount of rent is reasonable for the unit you have chosen, including: 

  • Location 
  • Overall Quality 
  • Size of the Unit 
  • Unit Type 
  • Property Age 
  • Comparable Units  

Rent reasonableness combined with your income will determine the amount of your housing assistance payment.  

Keep in mind that the PHA may not be able to approve the amount of rent requested by the owner. In the event that the PHA is not able to approve the requested rent, the owner will then have the chance to accept or refuse the rent offer that is made.