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-Kanawha
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-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.
Payment Standard
The amount of assistance
Charleston-Kanawha Housing provides is based on Fair Market
Rents established by HUD. From these amounts Charleston-Kanawha
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 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
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 CKH will pay the difference. If the family’s income
is $0, then 30% is $0. CKH 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-Kanawha
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.
|
