The typical scope of work for our Flat Rent Comparability Study generally includes the following process:
Cauthen & Associates will conduct a flat rent study using a rent reasonableness methodology as defined in 24 CFR Part 960.253 and utilizing local unassisted market data and listings from the State Housing Finance Agency newspapers, online apartment/ home websites and inquiries to local apartment complexes, and property management companies.
Rent reasonableness data will be reviewed to determine the most appropriate data to be used in the study based upon unit characteristics such as location, size, quality unit type, unit age and amenities.
Cauthen & Associates will compile all comparable units into a database to be sorted by bedroom size.
Cauthen & Associates will apply adjustment factors to the rent for each unit based on amenities and utilities included.
Cauthen & Associates will determine the recommended flat rents for each bedroom size for each housing authority development from the survey. Where sufficient data is not available, BC&A will interpolate rent for the bedroom size (such as zero or five-bedroom units using HUD-established adjustment factors).
The proposed flat rents shall be at least 80% of the local Fair Market Rent as required in HUD PIH 2014-12 (HA). The PHA shall adjust the flat rent amount downward as necessary for any tenant-paid utility allowances.
In addition, the PHA may be required to phase-in any rent increases so that a tenant will not experience an increase in their rental payments of more than 35 percent in any one year.
Cauthen & Associates will provide the PHA with a final report which will include methodology, data collection, data analysis and ACOP update recommendations.