The number that decides the file
Quick answer: A DSCR loan appraisal does two jobs: it sets the property's value, and it sets the market rent on top of your coverage ratio. That rent opinion arrives on Fannie Mae Form 1007 for a one-unit rental, or inside Form 1025 on two-to-four units. Most lenders then qualify on the lower of your lease rent and the appraiser's market rent. So a lease above market does not lift your ratio, and a rent opinion below it drags the ratio down.
Investors spend weeks on the purchase price and about ten minutes on the appraisal. That is backwards. On a debt service coverage ratio loan the appraiser does more than confirm the collateral. They write the numerator of the fraction that decides whether the loan exists. Get a soft rent opinion and the deal can die on a document you never saw coming.
This page covers five things. Where that rent number comes from. What happens when it lands under your lease. What a low opinion costs in dollars. The Nevada trap that makes chasing a higher rent backfire. And how a reconsideration of value works. Every figure is worked out in front of you.
Key takeaways
- The lower of the two numbers usually wins. A lease at 2,750 dollars against a Form 1007 opinion of 2,500 dollars is normally underwritten at 2,500. The 250 dollars of real rent above market does no work for you.
- A 100 dollar swing in the rent opinion moves 80 dollars of supportable payment at a 1.25 coverage threshold, because 100 divided by 1.25 is 80. That is the whole exchange rate between the appraiser's opinion and your budget.
- HUD's fair market rent for Clark County is a real Nevada threshold, not a benchmark. The FY 2026 figure is 2,413 dollars for a three-bedroom. Rent above it and NRS 361.4724 stops giving you the 3 percent property-tax cap. You fall under a cap that can reach 8 percent instead.
- That tax gap overtakes the extra rent in year eight. On the worked example the annual tax difference passes the annual rent premium between year seven and year eight, counting year one as the base bill before any increase. The lender only ever underwrote year one.
- You are entitled to a free copy of the appraisal even though a DSCR loan is business credit. Regulation Z steps aside under 12 CFR 1026.3(a)(1), but Regulation B's appraisal-copy rule does not, and its official commentary says so in plain words.
What does a DSCR loan appraisal actually decide?
A DSCR loan appraisal decides two things, and most borrowers only know about one of them.
The first is value, which drives loan-to-value and therefore your down payment. That part works the way it does on any mortgage. The second is market rent, and on a DSCR file that is the number your entire qualification rests on. The coverage ratio divides gross monthly rent by PITIA, meaning principal, interest, taxes, insurance and association dues. Change the rent and you change the ratio, without touching the property, the price or the borrower.
Which form carries which job depends on the property. Here is the working set.
| Form | Full name | Used for | What it gives the lender |
|---|---|---|---|
| 1004 | Uniform Residential Appraisal Report | One-unit property | Opinion of value |
| 1007 | Single-Family Comparable Rent Schedule | One-unit rental | Opinion of monthly market rent |
| 1025 | Small Residential Income Property Appraisal Report | Two-to-four-unit property | Value and market rent per unit |
| 216 | Operating Income Statement | Two-to-four-unit property | Income and expense detail |
Form 1007 is not a separate appraisal. The appraiser completes it alongside the value report. It holds three comparable rentals plus one reconciled opinion of monthly market rent. That single line is what a DSCR underwriter reads.
Where does the rent number come from?
From comparable rentals, chosen by the appraiser, not from your pro forma and not from the listing.
The appraiser pulls recently leased properties near the subject. They adjust each one for size, condition, bedroom count, garage, pool and location, then reconcile to a single monthly figure. That mirrors a sales comparison, except the unit of measure is rent rather than price. One thing follows from it that few investors expect. Documented lease comparables are thinner on the ground than documented sales, so the rent opinion usually carries wider uncertainty than the value opinion.
Two rules every DSCR loan appraisal follows
Two practical rules follow from how lenders then use that opinion.
The lower-of convention. A lease is already in place on many purchases. The standard treatment is then to qualify on the lower of the lease rent and the appraiser's market rent. A lease above market therefore adds nothing to your ratio. A market rent below your lease subtracts from it. One thing about this rule matters more than the rule itself. It is market practice on non-agency DSCR programs. It is not a regulation and not an agency requirement, so no rulebook fixes it and every lender writes its own version. Get your program's treatment in writing before the appraisal is ordered, because there is nothing to look it up in.
How old is too old
The second rule is about age, and it is narrower than it usually gets quoted. Selling Guide B3-3.1-08 does carry a twelve-month proviso, but only inside one documentation path: where the borrower is not using the subject property's rental income to qualify and the lender is documenting gross rent for reporting purposes alone. That is not a general age limit on appraisals. Fannie's general rule lives in a different topic, B4-1.2-04, which requires the property to be appraised within the twelve months prior to the date of the note and mortgage. Neither one binds a DSCR file, because these are not agency loans, so the window that actually governs yours is the one your own program sets. Ask what it is. An appraisal ordered early in a slow escrow can still go stale, and timing the order matters as much as placing it.
Want the rent number checked before you are under contract?
Send the address and the rent you expect. You get a written read on what a rent schedule is likely to support in that submarket. The ratio arithmetic comes with it, laid out rather than asserted. Current as of September 4, 2026.
Get your fast quoteWhat happens when the rent opinion lands below your lease?
The ratio drops, and a DSCR loan appraisal usually delivers that news after your inspection period has closed. That is why this is worth understanding before the appraisal is ordered rather than after it lands.
Work an illustrative Las Vegas purchase. A tenant is in place on a signed lease at 2,750 dollars a month. The Form 1007 opinion comes back at 2,500 dollars. Monthly PITIA on the structure being quoted is 2,300 dollars.
Ratio on the lease. 2,750 divided by 2,300 is 1.20.
Ratio on the rent schedule. 2,500 divided by 2,300 is 1.09.
What the file uses. The lower figure, so 1.09. If the program's threshold is 1.15, the deal passes on the lease and fails on the appraisal.
Now turn it around, because the useful question is what would fix it. To reach 1.15 on a PITIA of 2,300 you need 1.15 multiplied by 2,300, which is 2,645 dollars of qualifying rent. You have 2,500. The shortfall is 145 dollars a month of rent. Alternatively, hold the rent at 2,500 and bring PITIA down to 2,500 divided by 1.15, which is 2,173.91 dollars. That is 126.09 dollars a month lower than where you started.
The four ways to close the gap
Those two numbers are the entire menu. Every real remedy is one or the other.
- Raise the rent that counts. Order a reconsideration of value, or supply lease comparables the appraiser did not have.
- Lower the payment. Increase the down payment, buy the price down, or restructure. The interest-only route works on this side of the fraction, and so does putting more down.
- Move the purchase price. A soft rent opinion frequently arrives beside a soft value opinion, and that is a renegotiation, not a financing problem.
- Change the program. Reduced-ratio and no-ratio structures exist for files that land under 1.00, generally in exchange for lower leverage and stronger reserves.
How much does a low rent opinion cost in dollars?
Exactly the rent gap divided by the coverage threshold. That is the whole conversion. It is worth memorising, because it turns an abstract disappointment into a budget.
So a rent schedule landing 150 dollars under your lease removes 120 dollars a month of supportable housing cost at 1.25. The arithmetic is 150 divided by 1.25. Read across the table below to size any scenario without a rate.
| Qualifying rent | At DSCR 1.00 | At DSCR 1.20 | At DSCR 1.25 |
|---|---|---|---|
| 2,200.00 | 2,200.00 | 1,833.33 | 1,760.00 |
| 2,400.00 | 2,400.00 | 2,000.00 | 1,920.00 |
| 2,413.00 (Clark County FY 2026 fair market rent, three-bedroom) | 2,413.00 | 2,010.83 | 1,930.40 |
| 2,600.00 | 2,600.00 | 2,166.67 | 2,080.00 |
| 2,800.00 | 2,800.00 | 2,333.33 | 2,240.00 |
The stress test to run before you write the offer
Take the rent you expect, knock 10 percent off it, and divide the result by your program's coverage threshold. Treat that as your real ceiling on total monthly housing cost. The 10 percent is a margin you choose, not a measured error rate. Any figure you are comfortable with works. If the deal still clears with the haircut applied, a soft rent schedule is an inconvenience. If it only clears at the full number, you are relying on an appraiser agreeing with you. That is a hope, not a plan.
Why does chasing a higher rent backfire in Las Vegas?
Because Nevada attaches a property-tax consequence to the rent you charge, and property taxes sit inside PITIA. This is the part a national DSCR page cannot carry, and it is the most useful thing on this page.
Nevada caps how fast a tax bill can climb. Under NRS 361.4722 the general cap is the lesser of two things, and its ceiling is 8 percent. NRS 361.4724 grants a separate 3 percent cap to a residential rental dwelling. That one has a condition. The rent collected from each tenant must not exceed the fair market rent for the county as most recently published by HUD. The abatement also has to be claimed, in the manner the Nevada Tax Commission prescribes. It is not automatic.
So HUD's fair market rent is not a benchmark in Nevada. It is a threshold with money attached.
The Clark County numbers
| Unit size | FY 2026 fair market rent |
|---|---|
| Efficiency | 1,333.00 |
| One bedroom | 1,478.00 |
| Two bedroom | 1,735.00 |
| Three bedroom | 2,413.00 |
| Four bedroom | 2,764.00 |
Now put a number on the trade. Take a Las Vegas rental carrying a taxable value of 400,000 dollars. Nevada assesses property at 35 percent of taxable value under NRS 361.225, so the assessed value is 140,000 dollars. NRS 361.453 then caps the total ad valorem levy at 3.64 dollars per 100 dollars of assessed valuation. At that statutory ceiling the annual bill is 140,000 divided by 100, multiplied by 3.64. That is 5,096 dollars a year, or 424.67 dollars a month.
Now run that bill forward five annual increases on each cap. Count year one as the base bill, before any increase has landed, so five increases put you in year six. That convention holds for the rest of this section.
At the 3 percent rental cap. 5,096 multiplied by 1.03 to the fifth power is 5,907.66 dollars a year, which is 492.31 dollars a month.
At the 8 percent ceiling. 5,096 multiplied by 1.08 to the fifth power is 7,487.70 dollars a year, which is 623.98 dollars a month.
The gap. 1,580.04 dollars a year, or 131.67 dollars a month, entirely inside PITIA.
Two identical files, five years apart
Here is what that does to two files that look identical on day one. Both carry 1,900 dollars a month of principal, interest, insurance and dues. One is rented at 2,400 dollars, just under the fair market rent. The other is rented at 2,600 dollars, above it.
| Scenario | Rent | Year 1 PITIA | Year 1 DSCR | Year 6 PITIA (five increases) | Year 6 DSCR |
|---|---|---|---|---|---|
| At or under fair market rent, 3 percent cap | 2,400.00 | 2,324.67 | 1.03 | 2,392.31 | 1.00 |
| Above fair market rent, up to the 8 percent cap | 2,600.00 | 2,324.67 | 1.12 | 2,523.98 | 1.03 |
The honest verdict is that the higher rent still wins here. On day one it wins by a wide margin. However, the margin narrows every year, and it narrows on a line the lender never looked at.
Pricing the crossover
Price the crossover directly. The extra rent is worth 200 dollars a month, so 2,400 dollars a year, and it stays flat unless you raise rents. The tax gap compounds instead. Keep counting year one as the base bill, so six increases land in year seven and seven increases land in year eight. In year seven the gap is 5,096 multiplied by the difference between 1.08 and 1.03 raised to the sixth power, which is 2,001.82 dollars. That is still under the 2,400 premium. In year eight the seventh power gives 2,466.21 dollars, the first year to clear it. So the annual tax penalty overtakes the annual rent premium in year eight.
The decision rule. Holding for under about seven years? Rent above the fair market rent and take the higher ratio. Holding longer than that? Price the abatement in. The lender is underwriting year one and you are living in year ten. Either way, claim the abatement with the county assessor when the property qualifies, because nobody does it for you. The Las Vegas DSCR calculator covers the tax-cap mechanics on the payment side of the same fraction. The DSCR loans in Las Vegas hub sets out the rest of the program.
How do you challenge a DSCR appraisal?
Through a reconsideration of value, which is a formal request rather than an argument. Federal banking regulators finalised interagency guidance on these on July 18, 2024. It describes an ROV as a request to the appraiser to reassess the report, based on deficiencies or on information that may affect the value conclusion.
The guidance also names what may go into one. That list is narrower and more useful than most people assume. It covers three things: comparable properties not previously identified, property characteristics, and other information about the property that was reported incorrectly or not considered at all. Notice what is absent. Your opinion of the number, your pro forma and your need for the deal to work are not evidence.
What actually moves a rent opinion is therefore specific.
- Better rent comparables. Recently leased properties, closer to the subject, closer in size and condition, with the lease dates and the actual contract rents.
- Corrected property facts. A missed bedroom, a converted garage, a finished casita, an updated kitchen, a pool the report did not list.
- Documented lease terms. A lease that includes appliances, landscaping or utilities is not comparable to one that does not, and that difference is adjustable.
Ask your lender for the ROV process in writing before you need it. Programs differ on who may submit one and on how many are allowed.
You can get the appraisal itself, and this surprises people
A DSCR loan is business-purpose credit, so Regulation Z does not reach it. 12 CFR 1026.3(a)(1) exempts an extension of credit primarily for a business, commercial or agricultural purpose. Many borrowers reasonably assume that consumer protections therefore fall away entirely.
They do not all fall away. Regulation B's appraisal rule at 12 CFR 1002.14 reaches any application for credit secured by a first lien on a dwelling. Its official commentary states the point in plain words. The section covers applications whether the credit is for a business purpose or a consumer purpose. Regulation B defines a dwelling there as a residential structure containing one to four units, with no requirement that anyone live in it.
What that means on your file. Three obligations sit on the lender. It must give you a copy of every appraisal and written valuation, promptly upon completion or three business days before consummation, whichever comes first. It must tell you about that right within three business days of your application. And it cannot charge you for the copy, although it may charge you for the appraisal itself. Commentary to the rule adds one more thing. A valuation includes attachments and exhibits that are an integrated part of it. That is why the rent schedule normally travels with the appraisal.
Ask early. An appraisal that reaches you three days before closing is a receipt. One that reaches you the day it is finished is still a document you can act on.
What changes on November 2, 2026?
The form does. Fannie Mae and Freddie Mac are retiring the legacy appraisal forms. A single redesigned Uniform Residential Appraisal Report replaces them, built on Uniform Appraisal Dataset version 3.6. The mandate date is November 2, 2026. Broad production opened on January 26, 2026, so appraisers have been delivering both formats through 2026 already.
For a rental investor the practical change is simple. The standalone rent schedule stops being a standalone document. The redesigned report carries a rental information section inside it. So in most cases the legacy Form 1007 will not be completed separately at all. Fannie Mae publishes a mapping document for exactly this reason, because the report no longer works by form number.
Why this matters to you and not just to your appraiser. DSCR lenders do not sell these loans to Fannie Mae. Nothing forces a non-agency program to move on the same date. Expect a mixed world through late 2026 and into 2027. One lender's checklist will ask for a Form 1007 and the next will ask for the rental section of a URAR. Ask which one your program wants before the appraisal is ordered. A report in the wrong format means a re-order, and a re-order means two weeks.
What if the property is vacant, or the lease is unusual?
These situations are common and they are where files go sideways, so take them one at a time.
| Situation | What normally sets the rent | What to watch |
|---|---|---|
| Vacant at purchase, no lease | The appraiser's market rent opinion alone | There is no second number to fall back on, so the rent schedule is the whole case |
| Lease above market rent | The lower figure, so market rent | Above-market rent produces no ratio credit at all |
| Lease below market rent | Often the lease, since it is the lower figure | An inherited under-market tenant can sink an otherwise fine deal |
| Month-to-month tenancy | Varies by program, frequently the market rent | Some programs discount or exclude tenancies with no fixed term |
| Lease to a relative | Market rent, and expect scrutiny | Occupancy by the borrower or a family member breaks business purpose entirely |
| Housing choice voucher tenancy | Usually the contract rent, supported by the housing authority paperwork | Bring the contract, since a bank statement alone will not evidence it |
| Rented by the room | Whole-property market rent, not the sum of the rooms | Room-by-room income is normally the strongest part of your return and the weakest part of your file |
| Short-term rental | Long-term market rent on most programs | Nightly revenue and long-term market rent are different numbers, and Clark County licensing sits on top |
Why a vacant purchase is the riskiest DSCR loan appraisal
A vacant purchase deserves one extra note. With no lease in place there is no lower-of comparison to make. The entire numerator becomes one appraiser's opinion, formed on one afternoon, from three comparables. That is the highest-variance version of a DSCR file. Price the deal with a haircut applied rather than at the top of the rent range. The short-term rental version of this question has its own page, because nightly-revenue documentation is a genuinely separate problem.
Weighing this against agency financing? Run the conventional comparison an investor should run first. A conventional investment loan reads rent very differently, and it can be cheaper for a borrower with documentable personal income.
DSCR loan appraisal: FAQ
Does a DSCR loan require an appraisal?
Yes, in nearly every case, and it usually needs two outputs from the same assignment. The value report supports loan-to-value, and a rent schedule supports the coverage ratio. For a one-unit property that rent opinion arrives on Fannie Mae Form 1007, the Single-Family Comparable Rent Schedule. It is a one-page addendum to the appraisal, not a separate report. Two-to-four-unit properties use Form 1025, the Small Residential Income Property Appraisal Report, which carries market rent for each unit. From November 2, 2026 the agencies mandate a redesigned Uniform Residential Appraisal Report that folds the rental information inside the main report, so ask your lender which format the program expects.
What is Form 1007 and who fills it out?
Form 1007 is Fannie Mae's Single-Family Comparable Rent Schedule, and the appraiser completes it. It lists three comparable rental properties, adjusts them against the subject, and reconciles to one opinion of monthly market rent. That figure is what a DSCR underwriter puts on top of the coverage ratio. Note what it is. An opinion of market rent, not a record of what anyone is paying. That is precisely why it can disagree with a signed lease.
The lease against the rent schedule
Which rent does the lender use if my lease is higher than the appraised market rent?
Normally the lower of the two, so the market rent. That is the standard convention on DSCR programs, and it means rent above market does no work for your ratio. Take an illustrative file with a 2,750 dollar lease, a 2,500 dollar rent schedule and a PITIA of 2,300 dollars. The ratio on the lease is 1.20. The ratio the file uses is 1.09. If the program threshold is 1.15, the deal passes on the lease and fails on the appraisal. Thresholds and treatment vary by program, so confirm the rule in writing before the appraisal is ordered.
What it costs and what to do
How much does a low rent opinion actually cost me?
Divide the rent shortfall by the coverage threshold. At a 1.25 threshold every 100 dollars of lost monthly rent removes 80 dollars a month of supportable PITIA, because 100 divided by 1.25 is 80. At a 1.20 threshold the same 100 dollars removes 83.33 dollars. So a rent schedule landing 150 dollars under your lease costs you 120 dollars a month of supportable housing cost at 1.25. All figures here are illustrative arithmetic rather than program terms.
Your rights, the process and the timing
Can I dispute a DSCR appraisal or rent schedule?
Yes, through a reconsideration of value. Federal banking regulators finalised interagency guidance on reconsiderations of value on July 18, 2024. It describes an ROV as a request to the appraiser to reassess the report, based on deficiencies or information that may affect the value conclusion. A request may include comparable properties not previously identified, property characteristics, or information reported incorrectly or not previously considered. In practice that means three things. Better rent comparables, with dates and contract rents. Corrected property facts, such as a missed bedroom or a pool. And lease terms that explain a difference. An opinion about the number is not evidence. Ask your lender for its ROV process in writing, because programs differ on who may submit one.
Am I entitled to a copy of the appraisal on a business-purpose DSCR loan?
Yes. Regulation Z does not apply, because 12 CFR 1026.3(a)(1) exempts credit extended primarily for a business, commercial or agricultural purpose. Regulation B is different. 12 CFR 1002.14 covers any application for credit secured by a first lien on a dwelling. The official commentary to that section states it applies whether the credit is for a business purpose or a consumer purpose. Regulation B defines a dwelling there as a residential structure containing one to four units, whether or not the borrower occupies it. The lender must deliver copies promptly upon completion or three business days before consummation, whichever is earlier, must notify you of the right within three business days of application, and may not charge you for the copy.
Nevada and the awkward cases
How does HUD fair market rent affect a Las Vegas rental?
It sets a Nevada property-tax threshold. NRS 361.4724 gives a residential rental dwelling a 3 percent cap on its annual property-tax increase. There are two conditions. The rent collected from each tenant must not exceed the fair market rent published by HUD for the county, and the abatement has to be claimed. Above that rent the property falls under the general cap in NRS 361.4722, which can reach 8 percent. HUD's Final FY 2026 fair market rents for Clark County run 1,333 dollars for an efficiency, 1,478 for one bedroom, 1,735 for two, 2,413 for three and 2,764 for four. Taxes sit inside PITIA, so the choice quietly changes your coverage ratio in later years.
What happens if the property is vacant when I buy it?
The appraiser's market rent opinion becomes the entire numerator, since there is no lease to compare it against. That removes the lower-of test. It also removes your safety net, because a single opinion drawn from three comparables is doing all the work. Treat a vacant purchase as the highest-variance version of a DSCR file. Price it with a haircut applied to your expected rent. And order the rent schedule early enough that a surprise still leaves you options.
The bottom line
The rent on your lease is not automatically the rent your loan uses. On a DSCR file the appraiser writes the number that qualifies you, and most programs take the lower of that opinion and your lease. So the two moves that matter both happen before the report is ordered. Ask how the program resolves a disagreement, and run your arithmetic on a rent below the one you expect.
The Valley West take Borrowers treat the appraisal as paperwork. Underwriters treat it as the deal. Two habits fix most of the damage. First, ask what the program does when the rent schedule disagrees with the lease. Get that answer before the report is ordered, not after. Second, run your arithmetic on a rent 10 percent below what you expect. A file that only works at the top of the range is not a file, it is a wish. Valley West Mortgage is an independent mortgage lender, NMLS #65506, and the arithmetic here is published so you can check it rather than take it on trust.
About the reviewer
Before you order the DSCR loan appraisal
Get the rent question settled before the appraisal is ordered
One conversation gets you three things in writing. What rent the submarket is likely to support. What your ratio looks like at that rent, and at 10 percent below it. And how the program handles a rent schedule that disagrees with an in-place lease.
Start your fast quoteAcross Valley West: Want the ratio itself broken down step by step? Work through how the rent opinion feeds the ratio on our conventional lending site. The landlord policy inside every PITIA figure above is quoted by Valley West Insurance, our insurance agency.
Keep reading
- DSCR loans in Las Vegas, start to finish
- Run your own ratio on the calculator
- What a DSCR file has to show
- How much you need to put down
- Interest-only, and what it does to the payment
- Short-term rentals and the rent question
- Pulling equity back out later
The appraisal forms and the agency rules
- Fannie Mae Form 1007, Single-Family Comparable Rent Schedule. Source for the form's full name and its structure as an appraisal addendum carrying three rent comparables and one reconciled opinion of monthly market rent.
- Fannie Mae Form 1025, Small Residential Income Property Appraisal Report. Source for the two-to-four-unit report that carries both value and per-unit market rent.
- Fannie Mae Selling Guide B3-3.1-08, Rental Income, read on the September 2, 2026 published edition. Source for Form 1007 being named as a documentation source, and for the twelve-month proviso as it is actually scoped there, inside the reporting path used when the borrower is not using the subject property's rental income to qualify. This topic is not the source of any lower-of market-rent rule and does not contain one.
- Fannie Mae Selling Guide B4-1.2-04, Appraisal Age and Use Requirements, carrying a June 4, 2025 revision date. Source for the general agency rule that a property must be appraised within the twelve months prior to the date of the note and mortgage. Cited to mark the boundary of the B3-3.1-08 proviso, not because it governs a non-agency DSCR loan.
- Fannie Mae, Uniform Appraisal Dataset. Source for the November 2, 2026 UAD 3.6 mandate, for broad production having opened on January 26, 2026, and for the legacy forms being replaced by the redesigned Uniform Residential Appraisal Report.
The federal rules behind your rights
- Electronic Code of Federal Regulations, 12 CFR 1026.3, exempt transactions. Source for the business-purpose exemption at paragraph (a)(1), which places a non-owner-occupied rental loan outside Regulation Z.
- Electronic Code of Federal Regulations, 12 CFR 1002.14, rules on providing appraisals and other valuations. Source for the delivery timing at paragraph (a)(1), the notice at (a)(2), the no-charge rule at (a)(3), and the definition of dwelling at (b)(2). The Official Interpretations to Part 1002 supply the coverage statement at comment 14(a)(1)-1 and the attachments rule at comment 14(b)(3)-2.
- Board of Governors of the Federal Reserve System, Interagency Guidance on Reconsiderations of Value of Residential Real Estate Valuations, issued July 18, 2024. Source for the definition of a reconsideration of value and for the categories of information an ROV request may include.
The Nevada figures
- HUD Office of Policy Development and Research, Fair Market Rents. The Final FY 2026 county file was read directly and returns Clark County, Nevada, HUD area code METRO29820M29820, in the Las Vegas-Henderson-North Las Vegas, NV MSA, at 1,333, 1,478, 1,735, 2,413 and 2,764 dollars for efficiency through four bedrooms.
- Nevada Revised Statutes Chapter 361, property tax. Source for NRS 361.225, assessment at 35 percent of taxable value; NRS 361.453, the 3.64 dollars per 100 dollars of assessed valuation levy limit; NRS 361.4722, the general partial abatement whose ceiling is 8 percent; and NRS 361.4724, the 3 percent abatement for residential rental dwellings charging no more than the HUD fair market rent for the county, which must be claimed.
Article history
- September 4, 2026. First published. Every source above was fetched live on this date. The HUD fair market rents came out of HUD's own Final FY 2026 county data file rather than a summary page. The four Nevada statutes came from the served text of NRS Chapter 361 at the Nevada Legislature. Every ratio, tax figure and compounding result on the page was recomputed by hand.
What the fact check changed, same day
- September 4, 2026, a citation deleted. The first version of the lower-of section said Fannie Mae's rule for agency loans "points the same way", and that a file needs a written explanation where market rents do not reasonably support the lease rent. The fact check pulled Selling Guide B3-3.1-08 and found no such provision in it. What the Guide actually requires is an explanation of any variance between documented rental income and the lease amount, which is a collections check rather than a market-rent test. The sentence lent agency authority to a convention that has none, so it was removed rather than re-cited to something else. The lower-of convention is real market practice and now says so plainly.
- September 4, 2026, a rule re-scoped. The twelve-month appraisal-age sentence read as a general limit. It is not one. B3-3.1-08 carries that proviso inside a single reporting path; the general agency rule is B4-1.2-04, which is now cited separately and correctly.
- September 4, 2026, an off-by-one corrected. The crossover was published as year seven and is year eight. Year one is the base bill before any increase, so seven increases land in year eight. The dollar figures were right in the first version; three year labels attached to them were one year early.
What the build refused
- September 4, 2026, a statute correction. The Nevada rental abatement tied to HUD fair market rent is NRS 361.4724, not NRS 361.4723, which covers an owner's primary residence. The distinction is easy to get wrong and this page cites the rental section.
- September 4, 2026, an unsourced qualifier removed. A commonly repeated version of the Nevada rule adds the words "less utilities" to the fair market rent test. Those words do not appear in the served text of NRS 361.4724, so they were left out rather than repeated.
- September 4, 2026, no rate quoted. Every payment figure on this page is an assumption chosen so the arithmetic can be verified. No interest rate appears anywhere, and none of the tables describes terms available to any applicant.
Publication note
Last updated: September 4, 2026. Every regulation, statute and agency page cited above was read live on that date, and every ratio, tax figure and dollar amount was recomputed by hand on that date.
This article is for general information and is not legal, tax or investment advice. Valley West Mortgage is an independent mortgage lender, NMLS #65506, licensed in Nevada. Equal Housing Opportunity. Valley West Mortgage is not affiliated with, or acting on behalf of or at the direction of, HUD, the FHA, the VA, the Consumer Financial Protection Bureau, the Federal Reserve, Fannie Mae, Freddie Mac or any other government agency or government sponsored enterprise. Federal, state and agency material is cited here only as published public guidance.
DSCR financing is business-purpose credit for non-owner-occupied investment property, and neither the borrower nor a family member may occupy the property. Appraisal practice, coverage-ratio thresholds, rent treatment and reconsideration-of-value procedures vary by lender and by property. Nevada property-tax abatements depend on facts the county assessor determines, and a claim must be submitted. All figures on this page are illustrative. They are not an offer of credit, a rate quote, a preapproval or a commitment to lend, and no interest rate is quoted anywhere on this page.
