HUD & Fair Market Rents (Ready, Aim, Fire?) - Posted by JB

import · April 29, 2000, 10:26am

Posted by Alexk-NJ on April 29, 2000 at 14:39:26:

Hi, Where is Hudson Valley, New York? I am In Bergen County, NJ …Sounds close!

import · April 29, 2000, 10:26am

Posted by JB on April 29, 2000 at 10:26:28:

Hello All,

This is my first post for this board and I want to thank the developers for providing one of the truly valuable gems regarding real estate investing. I’ve read about a dozen books and have been through the Carleton Sheets program, but have a question regarding the HUD Section 8 program.

I have been reviewing the HUD information pertaining to Section 8 rental assistance programs and would like to know if the FMR (fair market rents) that they establish for 1-4BR homes are negotiable up to that established limit or do they pay the maximum value regardless of the rents.

There are a few opportunities available here in the Hudson Valley (NY) to purchase 1-3 BR condos and single family homes in my area and the total operating expense would be about 500-575/mo. for one bedroom and on average, about 800/mo. on a three bedroom. The FMR for a one bedroom is set at 792, 2 bedroom is 902, and 3 bedroom at 1127. I am waiting on a call back from HUD, but would like to know if they automatically pay the estbalished FMR, or do they they try to negotiate the lowest possible contract price, like they Pentagon does, with say, weapons systems?

Any information would be greatly appreciated.

Thanks,
A real estate investing newbie
anxious to fire his first shot.

JB

import · May 3, 2000, 7:03am

Re: HUD & Fair Market Rents (Ready, Aim, Fire?) - Posted by Laure

Posted by Laure on May 03, 2000 at 07:03:22:

In my area, they are not negotiable at all. Man, have I tried too. And, NEVER, NEVER, NEVER pay the Tenant’s utilities.

Good luck !

Laure

import · April 30, 2000, 1:24am

Re: HUD & Fair Market Rents (Ready, Aim, Fire?) - Posted by Paul_NY

Posted by Paul_NY on April 30, 2000 at 01:24:59:

The established rents, I believe, include all utilities.

When I asked at the sec 8 office, they asked what was included. I said heat and they said about $670 for a 3 bdrm, when established HUD rents are $702.