HUD posted a series of four videos about rent comparability studies (RCS) based on the recently revised Chapter 9 of the Section 8 Renewal Policy Guide (see Memo, 7/17). The videos provide training on preparing and reviewing rent comparability studies. The RCS is HUD’s tool for estimating market rents for private properties that have Section 8 Project-based Rental Assistance contracts.
The first video describes alternatives to the RCS in Option Two and contains a better explanation of non-shelter services. Option Two is for owners who request a renewal of their Section 8 contract when the RCS indicates that the contract’s aggregate current rents:
- Are at or below comparable market rents, or
- Exceed comparable market rents, but the project is exempt from Mark-to-Market restructuring and the owner is willing to cut the rents to comparable market rents prior to renewal of the contract.
The second video discusses what happens if an appraiser cannot find sufficient comparable properties, how to value non-shelter services, and common errors that have occurred in the past. The third video describes the process if a project’s rents exceed 140% of the Census Bureau’s median rent estimate. The fourth video contains information on the RCS review.
The videos are on HUD’s Section 8 Renewal webpage under “What’s New.”