Rental rate projections

[Colby Brown]

Hi all, many housing markets appear to be entering a downturn--or at least some form of correction to the rental bubble that emerged in recent years.  How are you taking this into account when analyzing deals, particularly when it comes to the rental rate assumptions in your cash flow analysis?  Of course there is a similar problem when a market is on the rise--you would under-price your property if basing the rental rate strictly on comparables--but isn't the risk associated with this more acute in a downward-trending rental market?