Who decides how much rent the lender counts?
An appraiser, mostly. On a two-to-four unit home the lender orders an appraisal that includes an opinion of market rent. The lender counts 75 percent of that figure, or of the lease if the lease is lower. You get a copy of the report.
WHAT MOST PEOPLE ARE NEVER TOLD
No national database holds rents for these homes the way one holds sale prices, so the appraiser works from comparable rentals. Signed leases and a record of rent paid are worth asking for before you offer.
The appraisal comes on Form 1025, Fannie Mae's form for two-to-four unit homes, and FHA loans use the same form. The lender picks the appraiser.
FHA counts the lower of the lease and the appraiser's market rent. On a conventional loan, Fannie Mae wants the lease supported by the appraiser's figure. If it is not, the lender justifies the gap in writing or uses the lower number. Neither rulebook asks for the rent printed in the listing.
Regulation B, a federal rule, says the lender must give you a copy of the appraisal promptly, and at least three business days before closing. Ask your loan officer whether you signed a waiver of that timing.
You can also ask for a second look. On a Fannie Mae loan you can appeal once per appraisal, with up to five comparable properties. The rule is written about the value, so ask whether the lender will also review the rent figure. FHA leaves the appeal to the lender.
GOOD TO KNOW
Before you offer, ask the seller for the signed leases and a record of rent actually paid. The appraiser's figure arrives after the price is agreed and can differ from the lease, and an appeal may not change it. Ask your loan officer how a lower figure would change your loan.
Yours is a little different. They all are.
Tell us what you are looking at and what you are trying to do. We answer with the numbers on your situation.
Free. No credit pull.
WHERE THIS COMES FROM
- Fannie Mae Selling Guide B3-3.8-02, Rental Income from the Subject Property (09/02/2026)
- HUD Handbook 4000.1 (FHA), revised 8/12/2026: rental income from the home you live in, printed pages 240 to 241; reconsideration of value, printed page 198
- Fannie Mae Selling Guide B4-1.2-01, Appraisal Report Forms and Exhibits (Form 1025) (09/03/2025)
- Fannie Mae Selling Guide B4-1.3-12, Appraisal Quality Matters: Reconsideration of Value (09/03/2025)
- Regulation B, 12 CFR 1002.14: rules on providing appraisals (CFPB)
- CFPB: What are appraisals and why do I need to look at them?
Researched and written by Series Homes. Checked against its sources on . Lending rules change. This page is general information, not a loan offer or legal or tax advice.