Can a tenant choose a property with rent that is higher than the Fair Market Rent established by HUD (or rent reasonableness survey done by the local Housing Authority)?
Yes, although the tenant would be responsible for paying any amount in excess of the Fair Market Rent (or rent reasonableness). For example, if you are charging $900/mo and the Fair Market Rent (or rent reasonableness) for the area is $850, the tenant will be responsible for the extra $50/mo, in addition to their 30% of their adjusted income. This is subject to the 40% first year restriction limit (please refer to the previous questions for more information on this restriction).
