sledbelly t1_j7ljfah wrote on February 7, 2023 at 5:54 PM

Reply to comment by Frederick_Foz in Dover builds tiny home neighborhood by sheila9165milo

There is no law that a landlord needs to make their rental fair market price. They are allowed to charge whatever they like. Less even.

pullyourfinger t1_j7snqp9 wrote on February 9, 2023 at 2:57 AM

clearly this project was approved with this density and variances due to the agreement re: rent control (which will probably end up making them section 8 housing eventually).

sledbelly t1_j7tu076 wrote on February 9, 2023 at 10:39 AM

They’ve already said this is market rate housing. Not section 8.

The owners will be making half a million dollars a year on this project.

Frederick_Foz t1_j7lmgsh wrote on February 7, 2023 at 6:14 PM

Yes but the fair market housing price is used for taxes and shit. I’m no tax expert so take this with a big grain of salt but I believe if you charge below you get hot with ridiculously high taxes and at that point it might not be profitable enough to keep building. Setting your price at the fair market price gives you the best tax benifits

Lords_of_Lands t1_j7ncvgi wrote on February 8, 2023 at 1:12 AM

Being at or under fair market lets you join some government programs that help renters pay their rent and can help you get low interest loans to deal with things like lead removal and energy efficiency. There are some tax benefits if you're in some poorer areas, but reductions from that are overtaken by repair costs.

Charging more simply means you can't be part of those programs. There isn't an extra tax for charging more other than the normal tax brackets.