7.5.4 Project Rents Used in Market Study

A. The rents as determined by the appraisal are to be compared to those concluded in the final market study. Variations in rents between the market analyst and appraiser may have only a minor impact on effective demand indicators but may have a significant impact on the market analyst’s opinion about absorption, since absorption is contingent on a specific rent level. The impact of this must be reflected in the final report. The market analyst must evaluate the rents for the subject and discuss the appropriateness of the rents based on current market conditions and an evaluation of the subject site and product offered, including suggested changes. Rents analyzed in the market study must be compared with the independent analysis completed by the appraiser and reconciled by the Lender.