According to the U.S. Department of Housing and Urban Development, JCHA must ensure that rents charged by owners/landlords to HCV Program families are reasonable. Comparing the proposed rent for an HCV unit to the rent for similar, non-subsidized units in JCHA's jurisdiction, determines rent reasonableness. JCHA's jurisdiction lies within the boundaries of Johnson County, Kansas, and excludes the City of Olathe, Kansas. The City of Olathe operates its own Housing Authority.
The goal of determining rent reasonableness is to ensure rents paid on subsidized units are consistent with rents paid on nonsubsidized units within JCHA's jurisdiction. When submitting the Request for Lease Approval, the amount of rent requested should reflect an amount sufficient to cover the cost of operating the unit as well as a modest profit for the owner/landlord. Please be aware there are instances in which the HCV Program participant's income may cause reasonable rents to be beyond what the family's budget can sustain. Under the HCV Program guidelines, a family may not spend more than 40% of its monthly income for rent and utilities.
Final determination of rent for an HCV unit is subject to an inspection by JCHA's inspection staff. The overall condition of the unit cannot be verified without conducting a physical inspection. If an inspector determines that the amount requested on the Request for Lease Approval form is not merited, then the rent amount must be negotiated based on the inspection findings.
Determining Rent Reasonableness
The following factors will be considered when determining rent reasonableness:
- Unit Size
- Housing Services
- Age of Unit
- Unit Type