Fair Market Rent
Use fair market rent, as established by TxDOT, instead of
average monthly cost for rent and utilities at the displacement
dwelling if:
- a displaced owner-occupant elects to relocate as a tenant; or
- a tenant pays less than half of the fair market rent for the displacement dwelling, unless fair market rent is 30 percent or more of the tenant’s income or its use would result in other hardship.
Formulate fair market rent from the average monthly rental
and utility cost of comparable dwellings (preferably three) located
in the subject area. Document fair market rent determinations in
the project file. These dwellings should be comparable to the subject
property in terms of the standard for DSS dwellings. Include reasons
for using fair market rent on form
.