Are SAFMR guaranteed?

[John Gam]

Assuming it complies with building codes, zoning and passes HUD inspection. Also Huduser.gov is where the SAFMR rents are from.

[Patti Robertson]

Originally posted by @Lluis Allen:

@Patti Robertson - Is your area one of the 24 mandatory MSA's that must use SAFRM's? If not, do you have any experience with PHA's in these areas?

I’m not familiar with this list of 24 MSAs.  I thought all HAs had to stay at 110% or less and each set that on an annual bases along with the bedroom formula.  My HAs pay 100-110%, depending on the HA.

1. If your given rent is equal to the SAFMR in a mandatory SAFMR MSA, will the local PHA typically determine that the rent is reasonable? Are there instances where they have considered your rent to be unreasonable, and why?

They all determine if rent is reasonable.  It is one of the HUD requirements.  The rent must be reasonable, affordable, and within budget.  They have to find comparable non-sec 8 rented properties that substantiate the requested rent to determine if it is reasonable.  Personally, I submit my own comps when I submit a RFTA.

2. How can get comfort with a rental amount that i know the PHA will consider reasonable? Craigslist comps? The Go section8 rental comp tool seems way off for a 5/6 bedroom rental. Is there a comp website or tool that you use?

I don’t look at gosection8 for rent determination often, but when I have it has been a decent source.  Just stick with the high range if you have a really nice place.  I don’t sweat it too much.  I advertise to all possible tenant groups.  If I get a SEC 8 applicant first, we submit for rent approval, but keep advertising.  You are not committed until a lease is signed.  We give the voucher hold the option of paying a reservation fee equal to the rent amount to pull it off the market, but they generally don’t come up with that until after the rent determination is made.  If we get an applicant that can move in faster and we have not yet received a full reservation fee, we take it an decline the SEC 8 applicant.  

No point sweating this too much.  Just advertise for the rent you want and submit if the applicant has verifiable income of at least one times your rent.  If you don’t like the amount they approve, you aren’t committed.