Section 8 Rents and Valuing a MF deal

[Stephanie Cabral]

Hi all, I'm reviewing a potential MF deal and looked at the rent roll. 100% of the units are affordable housing of various programs, including Section 8. I was surprised to see that all of the rents are substantially less than the FMR that HUD would allow for this city. Is the FMR the number that all landlords to section 8 tenants could collect or is the FMR a MAXIMUM amount of rent you could collect, meaning the program would establish the rents for each individual apartment based on the condition? Also, if someone could point me towards a resource for getting a Section 8 contract for the entire building, I'd appreciate the early-stage guidance.

Best,

Stephanie