---
kind: "section"
citation: "24 C.F.R. § 401.410"
title: "24"
number: "401.410"
heading: "Standards for determining comparable market rents."
url: "https://uscodex.org/cfr/24/401.410"
---

# §401.410. Standards for determining comparable market rents.

- (a) **When are comparable market rents required?** The Restructuring Plan must establish restructured rents for project-based assistance at comparable market rents unless the PAE finds that exception rents are necessary under [§ 401.411](/cfr/24/401.411.md).
- (b) **Comparable market rents defined.** Comparable market rents are the rents charged for properties that the PAE determines to be comparable properties (as defined in [section 512(1)](/cfr/24/512.md?p=1) of MAHRA, but also excluding [section 202](/cfr/24/202.md) or [section 811](/cfr/24/811.md) projects assisted under [part 891 of this title](/cfr/24/part891.md)). For purposes of [section 512(1)](/cfr/24/512.md?p=1), other relevant characteristics include any applicable rent control and other characteristics determined by the PAE. The PAE may make appropriate adjustments when needed to ensure comparability of properties.
- (c) **Methodology for determining comparable market rents.** If the PAE is unable to identify at least three comparable properties within the local market, the PAE may:
  - (1) Use non-comparable housing stock within that market from which adjustments can be made; or
  - (2) If necessary to go outside the market, use comparable properties as far outside the local market as it finds reasonable, from which adjustments can be made.
- (d) **Using FMR as last resort.** If the PAE is unable to identify enough properties under [paragraph (c)](#c) of this section, comparable market rents must be set at 90 percent of the Fair Market Rents for the relevant market area.

## Notes

### Authority

Authority: 12 U.S.C. 1715z-1 and 1735f-19(b); 42 U.S.C. 1437(c)(8), 1437f(t), 1437f note, and 3535(d).

### Source

Source: 65 FR 15485, Mar. 22, 2000, unless otherwise noted.