When must rent reasonableness be conducted?

Rent reasonableness must be conducted before approving the initial rent to ensure that the rent charged is fair and comparable to similar units in the market. This assessment is crucial because it protects both the tenant and the housing authority from excessive rent charges. Conducting the rent reasonableness evaluation prior to the approval of rent allows the housing authority to make informed decisions and to meet the regulatory requirements of the Housing Choice Voucher program, ensuring that federal funds are used appropriately and that tenants are not overburdened by rent costs that exceed the market conditions.

While tenant complaints, requests from the tenant, or annual reviews can prompt discussions about rent or reevaluation, they do not serve as the proactive measure required for the initial rent determination. Initial assessments of rent reasonableness are structured to take place prior to a tenancy agreement in order to establish a baseline for future evaluations and to protect tenant rights from the onset of their lease.