A “1007 appraisal” usually means Fannie Mae Form 1007, the Single-Family Comparable Rent Schedule. An appraiser uses rental comparables to support an opinion of a single-family property’s monthly market rent. It is normally an attachment to an appraisal, not a separate opinion of the property’s sale value or a guarantee of mortgage approval.
By Maniteja, Investor. Updated October 28, 2026. Prepared with AI assistance and checked against the primary sources linked below. All fee allowances, properties and financing calculations are hypothetical.
For a landlord, the distinction is expensive to miss. A house can support its $350,000 purchase price while its rent estimate supports less debt than expected. This guide explains what you are ordering, what the report does, how to compare fees and what to review when the market-rent opinion differs from your lease.
What is a 1007 appraisal, and what does it measure?
Form 1007 documents an appraiser’s market-rent analysis for a single-family property. It compares the subject with rental alternatives and reconciles the evidence into a monthly rent opinion as of a stated date. The lender then applies its own income rules. Market rent, contract rent and qualifying income can therefore be different numbers.
The official Fannie Mae Form 1007 and instructions describe it as an appraisal attachment. The form includes rental comparisons and space to explain the conclusion. It doesn’t promise that a tenant will sign at that amount, that rent will stay unchanged, or that the lender will accept all of it as qualifying income.
A sales appraisal asks what the property is worth under the assignment’s conditions. A rent analysis asks what its rental use supports. A seller’s estimate, property manager’s opinion or online rent estimate may be useful background, but none automatically substitutes for the report your lender requires.
| Item | Main question | Limit |
|---|---|---|
| Property value appraisal | What value does the collateral support? | A higher value doesn’t establish higher rent |
| 1007 market-rent analysis | What monthly rent does the market support? | It doesn’t set the lender’s final qualifying income |
| Executed lease | What rent and conditions did the parties agree to? | Above-market contract rent may need further support |
| Lender income calculation | What amount does this program permit? | It depends on the transaction’s written rules |
Begin with the DSCR loan guide if you are comparing property-income financing with conventional qualification. The rent report is one input. Credit, liquidity, condition, title and permitted occupancy remain separate parts of the file.
Does every property need Form 1007 in 2026?
No. The required report depends on property type, financing program and appraisal format. For conventional rental-income documentation, Fannie Mae’s subject-property guidance refers to Form 1007 or Form 1025 as applicable. Don’t assume a single-family rent schedule alone covers a duplex, fourplex or commercial apartment building.
The reporting format is also changing. Freddie Mac’s UAD 3.6 FAQ, checked October 26, states a November 2, 2026 mandate for new appraisal reports submitted to UCDP. Under the redesign, monthly market rent is generally included in the new URAR’s Rental Information section rather than supplied as a separate legacy 1007/1000 schedule.
That deadline concerns GSE appraisal submissions, not a universal order that every private DSCR lender must use the same report. Ask your lender which format and submission rules apply. A loan officer may still use “1007” as shorthand for rental analysis even when the delivered report looks different.
If market-rent information is requested after a redesigned URAR is completed, Freddie Mac describes engaging the original appraiser to amend it. Its FAQ also addresses a rare alternative when that appraiser is unavailable. Confirm the permitted route before paying another provider for a document that may not fit the file.
1007 rent schedule appraisal cost: what are you actually buying?
There isn’t a single national Fannie Mae 1007 appraisal fee quoted by the official form. The amount you pay depends on the assignment, market, property, timing and ordering arrangement. Ask whether the quote is for the rental analysis alone, an appraisal package including rent, or an amendment to a report already completed.
Compare the written scope before comparing dollar totals. A $150 hypothetical add-on and an $800 hypothetical appraisal package aren’t competing prices for the same work. Those numbers are budgeting examples, not a verified market average or a quote available through this website.
| Quoted item | Question before paying |
|---|---|
| Base appraisal | Which property and report format does it cover? |
| Rental analysis | Is it included, separately charged or already part of the report? |
| Amendment or update | What new work is needed, and who must perform it? |
| Rush, travel or reinspection | Which conditions trigger extra charges and who approves them? |
| Cancellation | What is refundable at each stage of the assignment? |
For a simple hypothetical budget, $650 for an appraisal plus a separately confirmed $150 rent-analysis charge totals $800. If the $650 already includes the rental work, adding $150 again overstates the budget. Keep the invoice and the scope together so the final settlement statement can be reconciled.
Fees paid before closing remain part of acquisition costs. Record a paid appraisal as already paid when calculating remaining cash due, rather than deleting the expense or paying it twice. The itemized DSCR closing-cost calculator separates gross charges, prior payments and retained cash.
How to order a 1007 appraisal without creating duplicate work
- Ask the lender to define the assignment. Confirm the property type, required value appraisal, market-rent component and accepted reporting format. Explain whether a report already exists.
- Use the approved ordering channel. Follow the lender’s or appraisal management company’s instructions. Don’t assume an independently ordered report can be transferred or accepted for the loan.
- Obtain the written quote and timing. Identify included work, extra charges, cancellation terms and the expected delivery date. A quoted turnaround isn’t a guaranteed closing date.
- Provide accurate property information. Arrange authorized access and supply requested leases, concessions and completed-improvement details through the permitted channel. Keep the lender informed of material changes.
- Review the delivered findings with the lender. Ask what rent is accepted, how discrepancies are handled and whether value or income is limiting the requested balance. Request factual review using the approved process when needed.
Appraiser independence matters. You can supply relevant facts without asking for the conclusion needed to make a loan work. A rent target derived from your desired mortgage payment isn’t evidence of market rent. Keep communications focused on identifiable property information and sources.
How appraisers evaluate rental comparables
A useful comparable competes for a similar tenant. Distance matters, but the closest listing isn’t necessarily the most informative. Compare legal unit type, usable space, condition and lease economics. A renovated house with furnished utilities-included rent may not support the same unfurnished, tenant-paid-utilities rent at another property.
Distinguish an asking price from an executed lease and record when the evidence was observed. A listing that has remained vacant at $3,200 doesn’t prove a tenant will pay $3,200. Concessions also matter: one month free on a twelve-month $3,000 lease produces $33,000 collected rent over that term, or $2,750 per month when simply averaged.
That arithmetic illustrates an economic difference; it isn’t an instruction for an appraiser to apply a fixed adjustment. Don’t assign a rent premium based solely on what a renovation cost. Provide evidence of completed work and comparable rental conditions, then let the appraiser analyze the effect.
Keep nightly short-term rental revenue separate from monthly market rent. Fannie Mae’s appraiser update on Form 1007 explains its monthly-rent purpose. A program accepting specialized short-term rental evidence has separate requirements; see the Airbnb DSCR planning guide before mixing the two income measures.
How Form 1007 rent affects a DSCR loan
The lender uses the income allowed by its program, which may consider market rent, an executed lease and supporting evidence. Some private DSCR programs apply the lower of lease or market rent; that isn’t a universal rule for every lender. Fannie Mae’s conventional guidance also addresses unsupported lease discrepancies and applies its own qualifying-income calculation.
Assume a $350,000 purchase, $70,000 down and $280,000 financing. At a hypothetical 7.5% over thirty years, P&I is about $1,957.80 monthly. Add $400 tax and $150 insurance, with no association dues, and PITIA is $2,507.80. These aren’t current rate quotes; use the dated rate reference for market context and request actual terms.
| Accepted rent assumption | Calculation | Coverage |
|---|---|---|
| $3,200 lease rent | $3,200 / $2,507.80 | 1.276x |
| $2,900 market rent | $2,900 / $2,507.80 | 1.156x |
| Rent needed for an assumed 1.25x target | $2,507.80 × 1.25 | $3,134.75 |
With a lower-of rule, the $2,900 market opinion controls this example even if the lease says $3,200. A higher sale-value appraisal doesn’t itself repair the income shortfall. The lender must still apply the value limit, coverage rule and other conditions independently.
Operating coverage is different. At $2,900 rent, 5% vacancy and $11,400 annual operating costs including tax and insurance, NOI is $21,660. Divide by $23,493.61 annual P&I and NOI-based DSCR is about 0.922x. Don’t deduct tax and insurance inside NOI and then add them again to debt service. The DSCR calculation guide explains both methods.
Ratios aren’t statutory approval thresholds. 1.00x means equality under the selected equation; 1.25x and 1.35x are possible program or planning targets. The calculator below models entered assumptions and doesn’t verify rent, offer a loan or guarantee that a particular balance is available.
Form 1007 Lower-Of Underwriting Comparator
Compare qualifying-rent assumptions. The lower-of rule is the default scenario, not a claim that every lender applies it. Select another method only when permitted by your written program terms.
The modeled principal cap uses rent/PITIA and the entered LTV only. Other lender criteria can reduce it. The separate NOI model includes operating costs and vacancy, so its ratio is different. No income is verified, submitted or saved.
Appraisal preparation checklist and factual review
- Confirm required report format, ordering channel, cost and delivery assumptions.
- Provide executed leases, amendments, concessions and requested payment evidence securely.
- Identify included utilities, furnishings, parking and legal unit count accurately.
- Document completed improvements and disclose unfinished work or known defects.
- Submit relevant rental evidence with source, date and asking-versus-executed status.
- Recalculate accepted rent, PITIA, cash to close and reserves after review.
The calculator’s checklist download saves a plain-text planning copy. It isn’t a list of identical requirements for every lender. Keep tenant information and application identifiers in the lender’s secure process rather than a public comparable-rental worksheet.
If a finding appears wrong, distinguish a factual error from a disappointing opinion. Identify the report section, the stated fact, the requested clarification and supporting dated evidence. Ask whether the lender’s review process covers rental analysis, value or both. Fannie Mae’s reconsideration-of-value guidance supplies conventional context; a private DSCR provider may use another procedure.
For example: “Please review the reported bedroom count against the attached permitted floor plan and explain whether it affects the rental comparison.” That is more useful than “Please increase rent to $3,200.” A review can leave the original conclusion unchanged. Don’t buy another report expecting automatic acceptance.
Retain a workable alternative while review is pending: more equity if available, a different permitted loan structure, a renegotiated purchase or a decision not to continue under the contract’s actual terms. Check the wider DSCR requirements before assuming a revised rent conclusion resolves the entire application.
Factual review request template
Use the lender’s required process and replace every bracketed field. This template requests factual review, not a predetermined result.
Subject: Request for factual review of rental analysis — [property / file reference]
To [lender or approved AMC review contact]:
Please review the following information concerning the rental analysis dated
[effective date] for [property address]. I am requesting a review of the
identified facts and supporting evidence, not a predetermined rent or value.
1. Report item: [page / section and the fact as reported]
Requested factual correction or clarification: [specific issue]
Supporting document: [dated source / attachment reference]
2. Additional rental evidence for consideration:
Comparable A: [address, source, date, rent and lease/listing status]
Relevant similarities and differences: [features, condition, concessions]
Comparable B: [same details]
Comparable C: [same details, if relevant and permitted]
Subject lease details: [term, rent, concessions, included services]
Completed improvements or other relevant facts: [dates and evidence]
Known limitations or adverse differences: [accurate disclosure]
Please confirm the permitted review process, any missing documentation and
whether the appraiser has addressed these items. I understand that review
may leave the original conclusions unchanged and does not assure approval.
[Borrower name / contact through approved secure channel]
Check a rent-comparable adjustment in dollars: If an appraisal supports $2,900 monthly rent instead of your $3,200 estimate, the annual gross-income difference is $3,600 before vacancy or expense adjustments. Rerun both the lender method and your operating budget at the supported rent. That quantifies the financing issue more clearly than disputing the appraisal’s headline number alone.
Frequently asked questions
What is a 1007 appraisal?
It usually means the Single-Family Comparable Rent Schedule, an appraiser’s analysis supporting monthly market rent. It is normally attached to a property appraisal and doesn’t determine final loan approval.
How much is the Fannie Mae 1007 appraisal fee?
There isn’t a single national fee stated by the official form. Ask for a written quote identifying whether rental analysis is included in the appraisal package or separately charged.
Can I order a 1007 appraisal myself?
Ask your lender first. It may require its own approved ordering channel, assignment scope and report format. An independently ordered report isn’t automatically acceptable or transferable.
Is Form 1007 the same as a full appraisal?
No. It addresses market rent and is normally an appraisal attachment. The sale-value conclusion, property-condition review and lender’s income calculation remain distinct.
Can a signed lease override the market-rent estimate?
Not automatically. The lender applies its written income rules and supporting-document requirements. Some programs use a lower-of method; others require analysis or different evidence.
Will UAD 3.6 eliminate rental analysis?
No. Under the redesigned URAR, monthly market rent is generally reported within its Rental Information section. Confirm the required format with the lender instead of assuming the old standalone form is always needed.
How long can I use an existing Form 1007 or market-rent analysis?
Ask the lender whether the report’s effective date, assignment and format are acceptable for your closing. A program may require updated evidence or a new report when the analysis is older or property conditions have changed. Do not assume one expiry period applies to every private DSCR loan.
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