- Instructions for Completing the HUD Form 92273 S8

RCS appraisers must use the Rent Comparability Grid (HUD 92273-S8) for preparing an RCS to estimate “market” rents for the subject project. A Rent Comparability Grid provides a tool for documenting the characteristics of the subject and the comparables, and the adjustments made for differences between a comparable and the subject. The Rent Comparability Grid is comprised of seven parts, and this Appendix includes “line-by-line instructions” for populating each data column under the forty-six line items on the Rent Comparability Grid.

RCS appraisers must review and comply with the guidance provided in Sections 9-8 through 9- 13 of Chapter Nine, and the instructions provided below before preparing a Rent Comparability Grid.

• A. General Instructions

  1. Prepare a separate Rent Comparability Grid for each primary Section 8-unit type. The RCS appraiser should review Section 9-9. A for guidance on classifying unit types as primary or secondary. For any secondary unit types, RCS appraisers need not complete a separate rent comparability grid.

  2. Complete all lines of the Rent Comparability Grid. The RCS appraiser must show all comparables for one unit type on one Rent Comparability Grid. The RCS appraiser must enter the comparable’s name and address at the top of each column, fill in all lines of the Grid’s data columns, even if no adjustment is made on a line. The RCS appraiser must use the specific letter codes listed in line items 8 and 9 under Section C of this Appendix. If a project has other characteristics that would affect the rent that the project could command in the subject’s market area, then the RCS appraiser may use blank lines (Lines 22 and 23) to capture these other characteristics.

  3. Make adjustments to comparable’s rents. Not all of the characteristics will affect rents. Local market conditions will dictate if, when and how much of an impact each characteristic will have upon rent. The RCS appraiser is required to make adjustments only for differences in characteristics that would affect the amount of rent that prospective tenants in the subject’s market area are willing to pay. The RCS appraiser must display all adjustments in dollar amounts. The RCS appraiser may leave adjustment entries blank (not zero) if local tenants would not pay for the difference shown on that line.

  4. Provide narrative explanations. The RCS appraiser must attach a narrative explaining why each adjustment was made and how the dollar value of the adjustment was derived for all adjustments exceeding a nominal amount (as defined in Section 9-12. C.2).

     • a. The RCS appraiser must prepare a separate set of explanations for each Grid. If an explanation applies to more than one comparable, the RCS appraiser may refer back to that explanation rather than repeating it each time. For example, the location adjustment for Comparable Y was estimated for the same reason and in the same way as for Comparable X.

Appendix 9-1-1 – Published March 2023

1

• b. The RCS appraiser must include the following two additional narrative explanations, if applicable, for the estimated market rent (Line 46 of the instructions): 1) how the market rent was derived from the comparables’ adjusted rents; and 2) how a primary unit type’s market rent was adjusted to derive a market rent for a secondary unit type.

5. Pay attention to special issues. The following are some of the issues and errors that are commonly noted by substantive reviewers. RCS appraisers must pay special attention to the guidance in this Appendix when making adjustments for these line items. The issues listed below are not in any order of occurrence or importance.

Appendix 9-1-1 – Published March 2023

2

2. Instructions for HUD’s Excel-Based Rent Comparability Grid

Before using HUD’s Excel-based Rent Comparability Grid, which can be downloaded at the link provided under Appendix 9-1-1, RCS appraisers must review the following instructions.

1. Worksheet is protected and locked. Formulas in the worksheet cannot be altered. If the RCS appraiser tries to enter data in a formula cell, the RCS appraiser will receive an error message stating that the cells are locked and cannot be changed.

2. Scrolling and entering data in the Worksheet. The RCS appraiser may use the tab key to move horizontally within the print area of the worksheet. This will allow the RCS appraiser to skip locked formula cells and stop only at cells designed to receive data. As the RCS appraiser enters adjustments, Excel will automatically compute counts, sums or percentages on the form.

• a. The Tab Key will navigate as described only if the Excel settings are configured to: 1) not check the Transition Navigation Keys box; and 2) check the “Microsoft Excel Menus” button. The RCS appraiser may go to Tools-Options-Transition Tab to check settings.

  • b. As the RCS appraiser scrolls horizontally to the right, columns will shift left and be hidden behind Column C’s row labels. This keeps line labels next to the data cells, making it easier to accurately load data. To view the hidden columns, the RCS appraiser may scroll back to the left. Similarly, rows will move up and disappear under the column headings as the RCS appraiser scrolls down. To bring the rows back into view, the RCS appraiser may scroll up.

3. Creating a New Grid. The “Create New Grid” button allows the RCS appraiser to simultaneously add a new unit type worksheet, label the tab at the bottom of the worksheet, and fill in the Unit Type box at the top of the worksheet. The RCS appraiser may enter different names/ labels for the tab and the unit type box on top.

If the “Create New Grid” button is used, the resulting worksheet will contain all the data that was on the worksheet containing the button. The RCS appraiser may edit any data that is not appropriate for the new unit type. For example, the RCS appraiser could:

• a. Load just the project names and other identifying header data that will apply to most unit types and then use the “Create New Grid” button to create a worksheet for each unit type. The RCS appraiser could then load amenity and adjustment entries either individually on each sheet, by copying specific cells from one worksheet to another, or by clicking the control key and selecting multiple worksheets. When the control key option is used, data is entered simultaneously in the same cell location on all the selected worksheets.

• b. Fully complete one unit type worksheet, use the “Create New Grid” button to add another worksheet, and edit the resulting worksheet to change data that is not appropriate for the new unit type. The RCS appraiser must not forget to check any copied data.

Appendix 9-1-1 – Published March 2023

3

4. Sign and Date the Form. After completing the Rent Comparability Grid, the RCS appraiser must sign and date the form. The RCS appraiser must also indicate whether the Grid was prepared in Excel (with the computer running the calculations using HUD’s formulas). If the RCS appraiser used another approach (such as manual entry of data, which is discouraged by HUD), the RCS appraiser must note that on the bottom of the grid or at the end of narrative comments.

• C. Line-by-Line Instructions for Preparing a Rent Comparability Grid

The guidance below provides line by line instructions to RCS appraisers for completing a Rent Comparability Grid. This guidance is organized by the seven parts (A through G) of a Rent Comparability Grid, covering forty-six line items.