Mark Up to Market - MU2M




In conjunction with a renewal under Option 1 - Mark Up to Market,  eligible projects can mark their Section 8 contract rents up to the comparable market rents as determined by a Rent Comparability Study.



Eligibility Criteria


Option One-A: Entitlement Mark-Up-To-Market Eligibility


To be eligible under Option One-A the property must meet the following criteria:


1. Property Condition. A Real Estate Assessment Center (REAC) physical inspection score of 60 or above with no uncorrected Exigent Health and Safety (EHS) violations.

2.  Ownership. The property owner must be a profit-motivated or limited-distribution entity.

3.  Market Rents. The RCS must demonstrate that the comparable market rents are at or above 100% of the FMR potential. Use the FMR figures calculated for the fiscal year in which the contract is expiring to demonstrate eligibility.

4. Use Restrictions. The project does not have a low-and moderate-income use restriction that cannot be eliminated by unilateral action by the Owner. Examples of use restrictions would be the existence of a Rent Supplement Contract, prior or present Flexible Subsidy assistance, or Low-Income Housing Tax Credits.


Option One-B: Discretionary Authority Eligibility


If a property is not eligible to renew under Option One-A then they may request a waiver under option One-B.


For Owners who request participation in Option One-B, and for Owners of projects that request an increase in rents above the cap on comparable rents of 150% of FMR, HUD will consider these requests if the project meets at least one of the following three characteristics:


1.  Vulnerable Populations. The tenants of the property are a particularly vulnerable population, demonstrated by a high percentage (at least 50%) of the units rented to elderly families, disabled families, or large families (large family is defined as a family of five or more persons)

2. Vacancy Rates. The property is located in a low-vacancy market area (or in a rural area with no comparable rental housing) where there is a lack of affordable housing and where Housing Choice vouchers would be difficult to use.

3.  Community Support. The property is a high priority for the local community as demonstrated by a contribution of State or local funds to the property. This matching requirement may be in the form of tax abatements, capital improvement funds etc.


HUD Guidance



Submission Requirements


2395 Jolly Road

Suite #180

Okemos, MI 48864

Phone: 517-267-9277

Fax: 517-267-9894