Are these numbers real ?! Using Section 8 FMR as Rental Comps

[Robert-Lee Pass]

Hey everyone so real quick Ive got a question about Section 8 . First of all what is your thoughts on using the section 8 fair market rent number as the comps for what i can get for a unit , and secondly will section 8 care about a garage or the square footage of the unit ?

I believe sq footage doesn't matter and its only Bed/Bath count that do but what about the garage ?

SECOND : I was doing research on the actual Max allowable rent for a particular county. I am finding numbers that say 1500 across the county and then i see numbers that say something completely different when I go to HUDuser.Gov. I want to believe the data they are showing but the top line they show is actually the zipcode i live in 80817 and its showing 3400 for a 4 bed when a 4 bed here is only 2400 market so I feel like that error means i have to scrutinize the whole data sheet.

If anyone has a second would you mind researching really fast as to what the Max Rent amounts are for Zipcode 81007 3 bed 2 bath (I'm seeing 1500 on some and 1840 on others , but that 1840 is what a new build class A rents for in that neighborhood / Zip. so its got me questioning. 

Thanks everyone .I'm about 2 months out from closing on a duplex . rental comps are currently 1600 a side for one of the units I'm buying .. I'm trying to see if 1500 is the Section 8 amount or 1850 because its right there on my comps of 1600 .

[Calvin Graves]

Pueblo Housing Authority says the SAFMR for a 3 br in 81007 is $1870

https://hapueblo.org/housing-programs/section-8-housing-choi...

BUT...HUD FMR is intended to cover both rent *and utilities*. Which explains why it looks really high.

Here is this year's worksheet to determine how big the utility allowance is: https://drive.google.com/file/d/137qEO_g8q9VX8nya77V74C94yrm...

That said, you can charge more for rent than the SAFMR, it just won't all be subsidized. And you may have to explain the situation to HUD. I don't think they want to subsidize units going above market rate without a good reason.

[Robert-Lee Pass]

Awesome , thank you for that. After learning this information about HUD rental rates i switched my subject property from a class A asking 2150 for a 3/2 down to a class B asking 1600 for a 3/2 just no garage and 200 sq ft less per side. but -175k less purchase price

thank you for that about the utilities. i get it now . Would you be willing to check 80817 for me . this is my home address and the figures i read are insane .. id say over 1k market. 3400 for a 4/3 but its only 2200-2400 market value

am i reading that correct?

[Calvin Graves]

Quote from @Robert-Lee Pass:

Awesome , thank you for that. After learning this information about HUD rental rates i switched my subject property from a class A asking 2150 for a 3/2 down to a class B asking 1600 for a 3/2 just no garage and 200 sq ft less per side. but -175k less purchase price

thank you for that about the utilities. i get it now . Would you be willing to check 80817 for me . this is my home address and the figures i read are insane .. id say over 1k market. 3400 for a 4/3 but its only 2200-2400 market value

am i reading that correct?

 Looks like 80817 is $3460 for a 4br: https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2024_code...

Though of course when you take out utilities and such, that number is a lot closer to market rate nominal rent.