What Rent To Request?
Many property owners believe they will be able to get more
from a Section 8 rental than from renting on the open market.
However, the amount of rent you are allowed will be affected
by two factors:
Is the rent reasonable in
comparison to like units?
Is the cost to the family for both rent and utilities within
40% of their income?
Housing Authority (CKHA) will determine whether your requested rent is reasonable
in comparison to similar unassisted properties in the area.
Rent Reasonableness is done at the time of the inspection
and takes into consideration such factors as the size, condition
and location of the property, as well as any amenities that
are included (central air conditioning, dishwashers, etc.).
If the requested rent is not reasonable you will be asked
to lower the rent.
Cost to the Family
are responsible for paying 30% of their income toward rent
and utilities. Charleston-Kanawha Housing pays the difference
up to the Payment Standard for their bedroom size. Families
never pay less than 30%, but if the cost of rent and utilities
is over the payment standard, the family may pay the difference
as long as the amount is within 40% of their income. If it
does exceed 40%, staff will inform you of what rent amount
would be affordable for the family.
amount of assistance CKHA provides is based on Fair Market Rents
established by HUD. From these amounts CKHA sets the payment standards
by bedroom size. The rates change annually around October 1st.
is the approximate cost in utilities (gas, electric, water,
sewer, and trash) for each bedroom size in Clay, Kanawha and
Putnam counties. If you deduct this amount from the Payment
Standard you will arrive at a rent most families will be able
Setting the Rent - An Example
you are renting a 2 bedroom apartment, with
the tenant paying all utilities, your rent could be no more
than $483 if the family has zero income. This is determined
||$721 (Payment Standard)
- $238 (Tenant paid utilities) = $483 (maximum rent amount)
Remember, the family must pay 30% toward rent and utilities
and CKHA will pay the difference. If the family’s income
is $0, then 30% is $0. CKHA would pay all the rent ($483) and
give the family $188 towards their utilities. If the rent
and utilities exceeded the applicable payment standard ($721)
then the family would be paying more than 30% and they would
not have the income to pay it.
More rent could be requested if all or part of the utilities
were included in the rent and/or if the family has income.
Generally, even for families with income you would want to
set you rent close to these guidelines.
the end, the amount of rent you request or can accept is a
business decision that you have to make. CKHA strongly recommends that you not permit a family to
move into a unit until it has passed inspection and the rent
amount has been finalized.