Rent Affordability & Rent Reasonableness

When a tenant submits the Request for Tenancy Approval (RFTA), MPHA will check to make sure the rent is reasonable and the rent is affordable. Below is a visual to distinguish between these two factors.

MPHA will pay market rent for a unit. To determine the market rent, MPHA will compare your unit to units with similar characteristics on the private market that have recently been rented in your neighborhood, called “comparables.” MPHA  considers many factors in determining rent reasonableness, including:

MPHA will alert you if your rent is not considered “reasonable” and will work with you to reach an agreement. If you feel that there are more appropriate comparable to compare your property to, you are encouraged to provide them. If we can’t come to an agreement on reasonable rent, you can choose not to rent to the tenant up until you have signed the lease and HAP contract. It is fraud to accept more money from voucher recipients to receive a higher rent. Collecting “on the side” payments could lead to civil or criminal charges.

For each particular tenant, MPHA calculates how much the tenant can afford based on both their portion of the rent (which cannot be above 50% of their income) and the subsidy they receive. Each family can afford a different rent. The rent must be at or below what the tenant can afford in order for MPHA to approve the unit. Property owners are not involved in determining rent affordability.

If there is additional information you need, please call the Community Engagement Specialist, Chad Biggers, at 612.342.1222.