Rental Housing

HUD's Methods of Determining Fair Market Rents Gao ID: RCED-86-209 August 22, 1986

In response to a congressional request, GAO reviewed the Department of Housing and Urban Development's (HUD) method of determining fair market rents for its rental assistance program.

GAO found that: (1) HUD establishes the base level of rent by using the census, the American Housing Survey, and the consumer price index; (2) because HUD recognizes that limitations exist in its data, its procedures provide for appeals to improve its rent estimates; (3) HUD headquarters and field offices may take different actions regarding appeals that could result in disparities in the levels of rent allowed for new and existing units; and (4) HUD does not maintain data concerning possible disparities in allowed rent levels, such as exist in Suffolk County, New York.

Recommendations

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