What Is Rent Schedule?
Rent Schedule: An appraiser's estimate of market rent for a property, used to qualify investment loans.
Also called: Form 1007, comparable rent schedule
A rent schedule is an addendum to the appraisal in which the appraiser estimates the property's market rent, based on comparable rentals nearby. For one-unit homes it's often Fannie Mae Form 1007.
How it's used
- DSCR loans: the lender may use the lower of the lease rent and the market rent to calculate DSCR.
- Conventional investment loans: lenders typically count 75% of market rent as income, allowing for vacancy and expenses.
Good to know
If you think the market rent is too low, send the lender comparable rentals, as with a reconsideration of value on an appraisal.