What is Form 1007, and how much rent will a lender count?

What the form actually is

Form 1007 is the Single-Family Comparable Rent Schedule. The lender orders it with the appraisal when it wants to use rent from the property to help you qualify. The appraiser finds comparable rentals nearby, compares them to your property, and gives an opinion of market rent.

For two- to four-unit properties, Fannie Mae refers to Form 1007 or Form 1025, as applicable, to support the rents. The idea is the same: the lender wants an independent read on what the property would rent for, not what you hope it will rent for.

Market rent means what the market supports today. Not the rent the seller's cousin paid. Not the number in the listing that says "could rent for $5,000!" with an exclamation point doing most of the work.

Fannie Mae says neither the appraisal nor Form 1007 can be dated 12 months or more before the date of the note. An old rent schedule is simply not usable as the rent source.

How the 75% rule works on a purchase

For a purchase, Fannie Mae's rule is short: multiply the monthly gross rent by 75% to get net rental income, then subtract the subject property's PITIA. PITIA means principal, interest, taxes, insurance and association dues.

The 25% haircut is not a judgment about you. Think of it as room for the vacancies, repairs and occasional tenant who "forgot" that happen to every landlord.

A hypothetical:

A negative number is not a dealbreaker by itself, but it counts against your debt-to-income ratio. When the gross rent on the form moves, the net moves by three quarters of the change. That is why investors watch the rent schedule as closely as the value.

Refinances and landlord experience change the math

On a refinance, Fannie Mae looks first at your tax return. If the property is on Schedule E, the lender generally does a cash flow analysis from Schedule E and averages it. If the property is not on Schedule E yet, the lender multiplies the lease amount by 75% and subtracts PITIA. Either way, the rent still has to be supported by Form 1007 or Form 1025.

Experience matters too. Fannie Mae treats the rental income differently depending on how long you have managed rentals.

• 12 months or more of rental management experience: positive net rental income can be used in full.
• Less than 12 months: positive rental income can only offset the property's own PITIA.
• Either way: negative rental income goes into the debt-to-income ratio.

First-time landlords often expect the rent to help them qualify. Sometimes it can only cover its own house. That is still help, just with fewer exclamation points.

The form is changing with the new appraisal report

The appraisal industry is moving to a redesigned Uniform Residential Appraisal Report under UAD 3.6. Freddie Mac says UAD 3.6 will be mandatory for new appraisal reports submitted on or after November 2, 2026, based on the first submission date.

Under the new format, Freddie Mac says the legacy rent schedule will not be completed separately in most situations. Market rent is handled inside the report's Rental Information section. If market rent is needed after the report is done, the original appraiser should be engaged to amend the report to include that section.

For borrowers, the practical change is small. You still need a supported market rent from the appraiser. Tell your loan officer at the start that you want rental income counted, so the right section is ordered the first time, not added later at extra cost and delay.

What I see in the field

The most common rent schedule complaint I hear is "the rent is too low." Usually the owner is comparing to the best rental they have ever heard of, or to a furnished short-term rate. The rent schedule is about comparable long-term rentals, adjusted for how each one differs from the property.

Like value, rent comes from evidence. A remodeled unit really does rent better than a tired one, because tenants react to condition the same way buyers do. A unit with in-unit laundry and parking can command more than one without. Those differences should be measured from real rentals, not guessed.

If your rent is higher than what the appraiser found, give the appraiser your lease and proof the rent is being paid, plus any rentals you know of that are truly similar. Facts move a rent schedule. Feelings move the owner.

Checklist before you order the appraisal

1. Tell your loan officer you want rental income counted, so the rent schedule or rental section is ordered with the appraisal.
2. Gather current leases and proof of rent payments for any occupied units.
3. List the features that affect rent: parking, laundry, recent updates, utilities included.
4. Run the 75% math yourself against your expected PITIA before you write the offer.
5. Ask about your experience level, since less than 12 months of rental management limits how the income can be used.
6. Watch the dates. The appraisal and rent schedule cannot be 12 months or more old at closing.

This is general information on agency guidelines. The lender's own rules, called overlays, control your loan, and other loan types such as DSCR loans work differently.