2021 Median Rent by Zip Code for HUD Section 8 RCS

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HUD recently released the 2021 median rents by zip code to be used in the mandatory market rent threshold test for Rent Comparability Studies or RCS.

Section 8 laws and procedures require the U. S. Department of Housing and Urban Development (HUD) to obtain and review Rent Comparability Studies (RCS) when renewing most Section 8 contracts. The market rents resulting from these studies determine the rents owners can receive under the program and greatly influence whether an owner will renew and continue providing affordable housing or opt-out of the Section 8 contract and convert to market rent housing. The market rents set in these studies also drive HUD’s outlays for Section 8 project-based subsidy.

If the rents in the owner’s study exceed 140% of median zip code rent threshold, then HUD will require a third-party Rent Comparability Study (RCS).
— HUD Section 8 Renewal Guide

Median Gross Rents are used to determine when HUD will procure a third-party RCS in conjunction with Section 8 Project-based Rental Assistance rent setting.  Section 9-14 of the Section 8 Renewal Policy Guide provides instructions for comparing the median rents as derived by an owner’s appraiser in an RCS with Census Bureau estimates of the median rents in the project's zip code.  If the rents in the owner's study exceed 140% of median zip code rent threshold, then HUD will require a third-party Rent Comparability Study (RCS).

For more information on the market rent threshold test, read our article “HUD Releases Mandatory Market Rent Threshold Test”.

HUD has recently published the new median zip code rents and the 140% thresholds - these numbers will be effective for any RCS signed by the owner’s appraiser on or after February 11, 2021. 

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