Date Published: October 2015
No. There is no rent reasonableness requirement in the PRA Program. Grantee programs must set rents in accordance with program requirements. In no circumstance may the initial Rental Assistance Contract (RAC) rent level exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent (FMR) level as determined by HUD, unless such rent level is substantiated by a market study that has been prepared in accordance with the requirements of a state housing agency or of Chapter 9 of HUD's Section 8 Renewal Guide as approved by HUD. Rents can only be adjusted annually based upon: 1) HUD's Operating Cost Adjustment Factor (OCAF), 2) such other operating cost index as has been adopted by the applicant for purposes of subsidizing affordable housing, or 3) as may be approved by HUD.