Factors Impacting Rent Offered
Four factors determine the rent CHA offers to an owner:
Asking Rent-The proposed rent on the Request for Tenancy Approval. The prospective tenant must sign this document.
Market Analysis-The rent amount the unit would receive from an unsubsidized tenant. CHA conducts a market analysis through a third party vendor and determines the amount the unit could receive in the private market. Owners have the ability to submit their own comparables; however, CHA does not guarantee that those units will be used to determine the market rent.
Payment Standard-The maximum amount of subsidy CHA can provide a family. The payment standard is based on FairMarket Rents (FMR) for the Chicago region, as determined by the U.S. Department of Housing and Urban Development(HUD). If the unit is located in an “Opportunity Area,” the participant may be eligible for an Exception Payment Standard.
Participant income (affordability)-Participants may not pay more than 40% of their monthly-adjusted income when moving into a new unit.
Please see attached PDF to see how CHA evaluates different scenarios!