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?
Rent Reasonable
Charleston Housing 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
Assisted families are responsible for paying 30% of their
income toward rent and utilities. Charleston 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.
Payment Standard
The
amount of assistance Charleston Housing provides is based
on Fair Market Rents established by HUD. From these amounts
Charleston Housing sets the payment standards by bedroom size.
These rates will be used for all initial contracts processed
after 4/1/07 and all annual recertifications beginning 12/1/07.
The rates change annually around October 1st.
| Efficiency |
$444.00 |
| 1 Bedroom |
$509.00 |
| 2 Bedroom |
$636.00 |
| 3 Bedroom |
$810.00 |
| 4 Bedroom |
$834.00 |
Utility Rates
Below is the approximate cost in utilities
(gas, electric, water, sewer, and trash) for each bedroom
size in Kanawha
and Putnam counties. If you deduct this amount from the Payment
Standard you will arrive at a rent most families will be
able to afford.
Approximate
Utility Costs (calculated 4/07)
| |
Kan |
Chas |
Kan |
Chas |
Kan |
Chas |
Kan |
Chas |
Kan |
Chas |
House (electric) |
$106 |
$91 |
$126 |
$117 |
$180 |
$178 |
$230 |
$232 |
$279 |
$288 |
(gas) |
$142 |
$118 |
$181 |
$150 |
$251 |
$217 |
$316 |
$277 |
$381 |
$341 |
Duplex (electric) |
$102 |
$86 |
$120 |
$111 |
$172 |
$170 |
$221 |
$222 |
$262 |
$276 |
(gas) |
$134 |
$111 |
$170 |
$142 |
$237 |
$206 |
$298 |
$263 |
$359 |
$325 |
Apartment (electric) |
$98 |
$83 |
$116 |
$106 |
$166 |
$163 |
$213 |
$214 |
$258 |
$265 |
(gas) |
$133 |
$107 |
$161 |
$136 |
$224 |
$197 |
$282 |
$252 |
$341 |
$310 |
Mobile Home (electric) |
$110 |
$96 |
$126 |
$117 |
$168 |
$167 |
$208 |
$210 |
$246 |
$257 |
(gas) |
$155 |
$123 |
$178 |
$148 |
$225 |
$200 |
$269 |
$245 |
$313 |
$295 |
|
Clay |
Put |
Clay |
Put |
Clay |
Put |
Clay |
Put |
Clay |
Put |
House (electric) |
$120 |
$113 |
$144 |
$140 |
$207 |
$257 |
$264 |
$257 |
$319 |
$313 |
(gas) |
$156 |
$140 |
$191 |
$173 |
$265 |
$242 |
$330 |
$302 |
$401 |
$366 |
Duplex (electric) |
$115 |
$108 |
$137 |
$134 |
$197 |
$195 |
$251 |
$247 |
$319 |
$358 |
(gas) |
$148 |
$133 |
$180 |
$165 |
$249 |
$231 |
$311 |
$288 |
$398 |
$411 |
Apartment (electric) |
$110 |
$105 |
$122 |
$129 |
$158 |
$188 |
$240 |
$239 |
$291 |
$290 |
(gas) |
$142 |
$129 |
$171 |
$159 |
$236 |
$222 |
$296 |
$277 |
$358 |
$335 |
Mobile Home (electric) |
$132 |
$118 |
$145 |
$140 |
$191 |
$193 |
$234 |
$236 |
$275 |
$283 |
(gas) |
$165 |
$145 |
$188 |
$171 |
$236 |
$226 |
$282 |
$271 |
$327 |
$380 |
Setting the Rent - An Example
If
you are renting a 2 bedroom apartment in Kanawha County, with
the tenant paying all utilities, your rent could be no more
than $424 if the family has zero income. This is determined
by:
| |
$590 (Payment Standard)
- $166 (Tenant paid utilities) = $424 (maximum rent amount)
|
Remember, the family must pay 30% toward rent and utilities
and CH will pay the difference. If the family’s income
is $0, then 30% is $0. CH would pay all the rent ($424) and
give the family $166 towards their utilities. If the rent
and utilities exceeded the applicable payment standard ($590)
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.
In the end, the amount
of rent you request or can accept is a business decision that
you have to make. Charleston Housing 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.
|
