Sunday, May 15, 2011

Video about Calculating Fair Market Rent 
FMR using a HUD Section 8 tool

While giving real estate investing presentations, especially about Section 8 and to new land lords, a common question from newbies is "How much can I charge for rent?"

WOW, that is a good question!

Remember, there are several things to consider while trying to answer this famous question:
  • How many bedrooms?
  • Demographics of the neighborhood?
  • Have I checked the local newspapers?
  • Did I call "FOR Rent" signs and see what other Land Lords are asking?
  • What is the Multiple Listing Service MLS saying about rental prices in that zip code?
  • Other Investors, what are they charging?
  • Does your property have issues?
  • Etc.

My point is that it would take a lot of time to do a good rental survey or Fair Market Rent FMR of your market before you can come up with a price.

But those days are over......

When I started using Section Eight I noticed that the case workers focused on:
  1. Participant's current income
  2. Inspection results of the land lord's property
  3. What is Section Eight or Plan Ocho currently paying other land lords in the area.

They would always come up with a figure magically. I always wondered how they calculated the results to come up with the fair market rent FMR number. Fair meaning making it a win-win for the Housing Authority, the Land Lord and the Participant.

NOW...

Here is a tool where the Fair Market Rent FMR ceilings are calculated for you by HUD, from efficiencies, one bedroom and up to four bedrooms. Check out the video....




Written by +Bob Burns.

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