Posted by Jim Rayner on March 14, 2002 at 18:24:40:
if you do not believe the numbers you can check them against datasets available at huduser.org
They are the current published rates from hud. They represent in most markets the 40th percentile of the market rent. In some markets its the 50th percentile. Also local housing authorities have the the ability to pay these published rates plus or minus 10 percent based on current demand for affordable housing. You also need to keep in mind that that the hud published rates include owner/landlord furnished utilities so if the utilities are tenant paid then the rate will be adjusted downward based on schedules specific to the market.
Bottom line is that these rates should reflect the approximate average in each market perhaps within a range of 10 percent. Many units will rent for less and many will rent for more.
The surveys used to establish the 2002 rates were conducted in 2001. The rates were effective october 1, 2001 and updated annually.
These rates are also not a good indicator for SFR’s unless you plan to participate in the HUD section 8 voucher program.
For units or homes with more than 4 bedrooms you can increase the 4 bedroom rate by 15% for each additional bedroom.