B3-3.8-06, Rental Income from Non-Subject Property: Investment Properties Purchased within 45 Days of the Subject Property (09/02/2026)

The lender must document a current housing payment to use any rental income in qualifying¹ and must include all documentation used to determine monthly market rents in the loan file. Documentation may include:

• a complete appraisal report (Form 1004 or Form 1025) for the non-subject property that includes the market rents. (Note: The appraisal report for the non-subject property may be from the original loan application date); or

if no appraisal is available, then

• a Single-Family Comparable Rent Schedule ( Form 1007) for a single-unit property, or 
• market analysis tools may be used on multi-unit properties to determine the gross rental income amount, such as Zillow, Redfin, MLS, etc. When using these tools, the lender must obtain at least three comparable rental properties. Comparable rental properties should be from within the same market area (including subdivision or project) when possible.

Note: Lease agreements are not permitted for investment properties purchased within 45 days of the subject property.

To determine adjusted net rental income (ANRI), the lender must

• multiply the monthly gross rent(s) by 75% for net rental income,² then 
• subtract PITIA of the related property.

If ANRI is positive, the lender may use rental income to offset the PITIA only.³

If ANRI is negative, the lender must include the amount in the DTI ratio.³