What are the leasing requirements for payment of rent? (§ 578.49(b)(2))

In CoC projects that pay for units with CoC leasing funds, the rent must be reasonable in relation to rents charged for comparable units in the area. CoC Program funds may not exceed the lower of Fair Market Rent (FMR) or the rent reasonableness limit for the unit. If unit rent is above the FMR, a recipient may pay the difference (not with HUD or match funds), but the recipient or subrecipient can never pay more than what is considered reasonable to support that unit.

Example: What is the Maximum Allowable Contract Rent?


1-Bedroom Housing Unit

2-Bedroom Housing Unit

3-Bedroom Housing Unit

Reasonable Rent




Fair Market Rent




Maximum Allowable Contract Rent




Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?

Virtual Binders Glossary

This Leasing Rent Determination Worksheet is intended to help recipients and subrecipients that lease individual housing units or structures determine whether or not a prospective unit meets FMR and rent reasonableness standards. The worksheet also helps recipients and subrecipients determine how much rent they may pay with Leasing program funds.

* CoC funding can only support the unit up to $1,200. Non-CoC funds must pay the $100 difference.

For more information on rent calculation, rent contribution, leases, and other related topics, visit the Leasing and Rental Assistance Binder.