The rent schedule is a short document attached to an investment property appraisal, and it frequently determines your qualifying income. Most investors never see one until it affects their deal.
These questions cover what it is and how it works.
Quick answer
Form 1007 is the Single-Family Comparable Rent Schedule, documenting an appraiser's opinion of market rent based on rental comparables. For two-to-four unit properties, Form 1025 serves a similar function within a small residential income property appraisal.
Frequently Asked Questions
What is Form 1007?
The Single-Family Comparable Rent Schedule — an appraisal addendum where the appraiser documents an opinion of market rent for a single-family investment property, supported by rental comparables.
What is Form 1025?
The Small Residential Income Property Appraisal Report, used for two-to-four unit properties. It analyses each unit's rental income as part of the valuation.
Who orders the rent schedule?
The lender, as part of the appraisal order. You do not commission it separately.
What does the appraiser include?
Typically three or more rental comparables with their rents, adjustments for differences from the subject property, and a concluded opinion of market rent.
How are rental comparables selected?
The appraiser chooses properties they consider similar in location, size, condition, and features. Selection is a matter of professional judgment, which is where variation arises.
Why does the concluded rent matter so much?
Because many lenders use it — either directly or as a ceiling against your lease — to calculate your coverage ratio, which drives qualification and pricing.
Can I see the rent schedule?
You are generally entitled to a copy of the appraisal, including addenda. Ask your lender for it, particularly if the ratio came back lower than expected.
What if the concluded rent is too low?
Review the comparables used. If the appraiser selected inferior properties or reached too far geographically, that is the basis for a reconsideration request.
How do I request a reconsideration?
Through your lender, with specific better comparables — actual addresses, actual rents, genuinely similar properties. Disagreement without data rarely succeeds.
Does the appraiser see my lease?
Often yes, if provided. Whether they weight it depends on their analysis and whether the lease rent appears consistent with the market.
Can my lease be above the appraised market rent?
Yes, and it happens regularly. Under a lower-of policy the market figure would then be used, reducing your ratio below what your actual income suggests.
Does the rent schedule affect the property value?
On single-family, value is driven primarily by comparable sales rather than rent. On two-to-four unit properties, income analysis contributes more directly to value.
What if there are few rental comparables?
In thin markets the appraiser may reach further geographically or use older data, which introduces uncertainty and often produces conservative conclusions.
Does property condition affect the rent opinion?
Yes. The appraiser evaluates the property as it exists. A property needing updates receives a rent opinion reflecting its current condition, not its potential.
How long does the rent schedule add to the appraisal?
Generally minimal additional time, since it is completed alongside the valuation. Multi-unit properties take longer overall due to the more detailed analysis.
Is a rent schedule required on every investment loan?
Almost always on DSCR loans, since the rent figure is the qualifying input. It is a standard part of investment property appraisal.
What about short-term rental properties?
Form 1007 documents long-term market rent. If a lender substitutes market rent for STR income, this is the figure they use — which is why STR treatment matters so much.
Can I order a rent schedule before buying?
Not through the lender's process, but you can commission an independent appraisal or rent study for your own due diligence. It will not substitute for the lender's appraisal.
What is the most common surprise?
The concluded rent coming in below the investor's estimate, particularly in appreciating markets where recent lease data lags current asking rents.
How do I protect against a low rent opinion?
Underwrite conservatively from the start, and if the property is leased, provide the lease and payment history so the appraiser and underwriter have documented evidence.
