Fair Market Rents – Section 8 Tenants – Update May 2015 – ALL States


Fair Market Rents are established by HUD each year for the Section 8 Program. For more information about the annual calculation of Fair Market Rents, visit the HUD’s Office of Policy Development and Research.

HOME Rent Limit data are available from FY 1998 to the present.

Per 24 CFR Part 92.252, HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of:

  1. The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or
  2. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions.

In rental projects with five or more HOME-assisted rental units, twenty (20) percent of the HOME-assisted units must be occupied by very low-income families and meet one of following rent requirements:

  1. The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a).
  2. The rent does not exceed 30 percent of the family’s adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family’s adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program.

The FMRs for unit sizes larger than 4 bedroom are calculated by adding 15 percent to the 4 bedroom FMR for each extra bedroom. For example, the FMR for a 5 bedroom unit is 1.15 times the 4 bedroom FMR, and the FMR for a 6 bedroom unit is 1.30 times the 4 bedroom FMR, and so on…

  • 5 BR = 1.15 x 4 BR FMR
  • 6 BR = 1.30 x 4 BR FMR
  • 7 BR = 1.45 x 4 BR FMR
  • 8 BR = 1.60 x 4 BR FMR
  • 9 BR = 1.75 x 4 BR FMR
  • 10 BR = 1.90 x 4 BR FMR
  • 11 BR = 2.05 x 4 BR FMR
  • 12 BR = 2.20 x 4 BR FMR

These HOME rent limits are effective June 1, 2015, and are applicable to new HOME leases and lease renewals after that date.

Attached is an update for state of California.  For other states, please sign-in and request for a copy for your state.

HOME_Rent Limits_State_CA_2015

Resources at Amazon Corner:

  1. Real Estate Investment
  2. Real Estate Finance for Residential and Commercial
  3. Buying Real Estate Without Cash or Credit
  4. Buying First Home: Tips, First Home Owners Grant & First Mortgage Guide, Home Buying Process

For further question, please sign-in for our free consultation.

Case Study: Sale-Leaseback Technique of Wendy’s and McDonald


Wendy’s Refranchising 640 Stores

Following a pattern we’re seeing in the wider market, Wendy’s this week announced that they were going to sell as many as 640 stores to their franchisees. This on the heels of McDonald’s announcing they would do the same for 3,500 stores as part of their effort to boost the bottom-line.

It’s not exactly clear how many, but certainly some sizeable percentage of these stores may be candidates for sale-leasebacks by the Franchisees. Sale-Leaseback activity in the franchise space has been brisk this year and a flurry of new inventory of this type is exactly what the market is looking for.

With constrained supply and high demand, these franchisees would likely have no problem doing sale-leasebacks to help them finance the store purchases, particularly if the stores in question have a good sales history and the franchisee is substantial enough.

This refranchising trend has been increasing lately largely as a mechanism of the franchisors to trim corporate overhead costs.  [1]

Why and How?

Commercial real estate owner find ways to generate revenue and increase capital. A sale-leaseback technique unlock the equity a company has in its real estate and to convert that equity into cash. This involves selling the institution’s headquarters or branch offices and simultaneously leasing them back long-term.

In addition, many property-owners are recognizing the tax benefits and other advantages of these transactions. Finance adviser/consultant can advise clients on the benefits and help them find sale lease back providers.

In general by sale-leaseback its property, a property-owners can lower its operating costs and use that money to increase its cash flow.

Six benefits of sale-lease back transactions:

1)  Favorable Impact on Earnings.  A sale-leaseback transaction converts noncurrent fixed assets such as real estate into current liquid assets— i.e. cash.  It can generate a gain on the sale when properties’ market or appraised values are more than the depreciated book value. Property-owners often can improve their earnings by reinvesting the cash at a greater rate, retiring high cost debt funding mergers and acquisitions, expanding operations, or taking advantage of special investment opportunities.

2)  Total Facility Control. Simultaneously with the sale, the company leases back the property for an initial lease term — typically 15 years with renewable five-year options. In effect this gives the company control of its real estate for at least 40 years. This would be identical to ownership of the property’s normal useful life.

3)  Low cost of Money.  A sale-leaseback transaction can be a quick economical way to raise capital compared to the process of originating a new stock issue. Issuing new stock may result in an ownership dilution at unfavorable prices or with unwanted investors.

The leaseback is a low-cost technique that avoids these consequences as a rule, a sale-leaseback transaction should provide capital at an effective cost of 100 to 150 basis points less than that of long-term mortgage financing or the long-term conventional debt market. It should have no restricted covenants and no principal repayment after all lease payments.

4)  Recapture all costs. In a typical sale-leaseback transaction, the company would recapture all costs relating to the property’s current market value, including legal fees, surveys, architectural engineering, title, and any other closing costs or property- related fees. This contrasts to conventional long-tern mortgage financing, which is usually restricted to percent of the current market value.

5)  Regulatory Compliance. The cash a business receives from a sale-leaseback transaction can help it improve its primary and total capital-to-assets ratios The profit on a sale-leaseback transaction from depreciated value to current appraised value can increase a company’s net worth.

6)  Off-balance-sheet Finance. By carefully structuring an operating lease, the transaction would not require capitalization under Financial Accounting Standards Board is criteria.  In turn, this allows off-balance-sheet treatment, which in effect would have a more favorable impact on the company’s earnings and improve its financial ratios.

RESOURCES from Amazon Corner

  1. Principles of Real Estate Syndication: With Entertainment and Oil-Gas Syndication Supplements Included
  2. Maverick Real Estate Financing: The Art of Raising Capital and Owning Properties Like Ross, Sanders and Carey
  3. Real Estate Investment
  4. Real Estate Finance


[1] Wendy’s Refranchising 640 Stores

Free consultation is available, please sign in 

A Great business consultant must see a white space around the black dot…

Biz Consultant

A business consultant’s job is to consult. Nothing more, nothing less. It’s that simple. There’s no magic formula or secret that makes one consultant more successful than another one.

But what separates a good business consultant from a great business consultant is a passion, drive for excellence and creativity. And–oh yes–a great business consultant should be knowledgeable about the subject he or she is consulting in. That does make a difference.

Creativity is not only helps a Great business consultant can “see” things surrounding of his client’s issue,  but it also provides right guidance and assists with precise and correct solution.  For illustration, place a small black dot on a blank piece of fresh paper represents your client’s issue. It could be involved human resources, account receivable, account payable, expansion funds, equipment, budgeting, personnel, or even community relations. It is your client’s black dot.

Unfortunately majority of good business consultants will see ONLY the black dot.  Their eyes will focus and become fixated on it.  As a great business consultant, you must see all the white space around the black dot.  Fill the white space with all the positive recommendations and solutions. Start to make notes.  Keep thinking and writing.  A great business consultant is constantly searching for right solutions to solve his client’s issue.

Within no time the white space will fade, and the dot will become unnoticeable. Your client’s issue will become workable. Furthermore, involve team members or partner with your client’s black dot. A fresh set of eyes may be all you need to make the impossible, possible. By taking on your client’s issue in pieces and parts, you can develop strategies to chip away at it. In the end, the seemingly insurmountable black dot no longer exists―you have made progress. As a great business consultant you have found ways to cope with and improve your client’s situation.

biz consultant 8

Top 10 Consulting Businesses Thriving Today

Although you can be a consultant in just about any field these days, the current top 10 consulting businesses include:

  1. Accounting:Accounting is something that every business needs, no matter how large or small. Accounting consultants can help a business with all of its financial needs.
  2. Advertising:This type of consultant is normally hired by a business to develop a good strategic advertising campaign.
  3. Auditing:From consultants who audit utility bills for small businesses to consultants who handle major work for telecommunications firms, auditing consultants are enjoying the fruits of their labor.
  4. Business:Know how to help a business turn a profit? If you have a good business sense, then you’ll do well as a business consultant. After computer consulting, people in this field are the next most sought after.
  5. Business writing:Everyone knows that most businesspeople have trouble when it comes to writing a report–or even a simple memo. Enter the business writing consultant, and everyone is happy!
  6. Career counseling:With more and more people finding themselves victims of a corporate downsizing, career counselors will always be in demand. Career counselors guide their clients into a profession or job that will help them be both happy and productive as an employee.
  7. Communications:Communications consultants specialize in helping employees in both large and small businesses better communicate with each other, which ultimately makes the business more efficient and operate smoothly.
  8. Computer consulting:From software to hardware, and everything in between, if you know computers, your biggest problem will be not having enough hours in the day to meet your clients’ demands!
  9. Editorial services:From producing newsletters to corporate annual reports, consultants who are experts in the editorial field will always be appreciated.
  10. Executive search/headhunter firms:While this is not for everyone, there are people who enjoy finding talent for employers.

You decide which type of business consultant you want to be – I choose to be a GREAT one.


Amazon Corner’s Books


  • Consultants News
  • Business Consultants Directory, American Business Directories Inc., 5711 S. 86th Cir., Omaha, NE 68127

Growing – Evolving – Pushing Forward

Financial Planning is like garlic to a vampire

DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Other books are recommended here

You can browse through our Amazon Corner for any other interests.  Taking advantage of addition 10% OFF for any first time purchase.

Building a Finance Plan Geared to Growth

 BuildingFinancePlan 30pcOFF

I would like to share with you our book reviewer from Ms. P. Fisher, “Garlic to a vampire“.

I recently read Daniel Nguyen’s Building a Finance Plan Geared to Growth, and have decided to keep this as my small business guidebook to finance management.  I am not an expert, hardly even a novice, when it comes to managing my business.  As a “creative” type, financial planning is like garlic to a vampire.  And yet, financial planning is essential to running a successful business.  I believe that part of my resistance comes from lack of understanding the definitions and how to do things such as create financial statements like profit and loss, cash flow, etc.  When we don’t understand how something works it becomes twice the job and, in my case, gets put on the bottom of the “To Do” pile.  What I really like about this guidebook on how to build a financial plan is that Mr. Nguyen explains what all of these terms mean. He gives us not just a textbook definition, but also shows HOW they work in relation to the overall picture of getting a small business loan, for example. He then shows a sample of what that financial statement should look like.  THIS I can understand!  He also tells the reader what to ask for –and what NOT to ask for.  There is information on establishing credit well in advance of going for a loan, things that I can do now to prepare for my possible or projected business needs in the future. He includes guideposts of ways to evaluate the progress and effectiveness of my current business needs, and then how to assess my possible future needs. Then, for when I am ready to go for a loan, I like the True-False test that he includes in the text.  This test allows me, as the business owner, to self-score how prepared I am to go meet with the banker.  This book is a wealth of good advice, resources and tools that I can use in understanding and applying good financial practices in my business.

I feel that if I follow the outline of this book that I could meet with a bank lender and not appear to be an idiot.  Mr. Nguyen has thought of not only the standard things that I will need to bring and think about beforehand, but also other possibilities that a lender might want to know.  For example, he writes that I, as a business owner, should have not one, but two possible repayment plans, to reassure the lender that I am a good risk. This is good, easy-to-understand information- he gets a score of “10” from me on a practical help scale.

Growing – Evolving and Pushing Forward!

Other related topics:

Manage Your Money – Free ebook

5 IRS Categories’ Audit Risk for Small Businesses

Always protect your investment against risks

4 fundamental Ways Really Increase Your Revenue and Asset in Business

Three recommendations improving your communication with business person

Top 6 Terms You Should Know Before Investing in net lease commercial real estate


Business consultant’s book at Amazon Corner

Amazon Corner’s Books

5 IRS Categories’ Audit Risk for Small Businesses

business Entity type 8

It is very stressful when find yourself under the IRS microscope. Here are 5 categories that impact audit risk for small businesses according to the IRS commissioner.

The best course of action: Retain all receipts and other tax papers (even if scanned into your smartphone or desktop), conscientiously record income and expenses, and work with a certified professional accountant.


  1. Entity type
  2. Income level
  3. Location
  4. Deductions
  5. Type of business

Entity type

business Entity type

From a legal standpoint your business entity impacts your IRS audit risk. Statistics in the 2014 IRS Data Book show that an S corporation or partnership (including a limited liability company filing a partnership return)—regardless of income or other factors—had only a 0.4% chance of being audited in the government’s fiscal year ending September 30, 2014. In contrast, a sole proprietorship with gross receipts between $100,000 and $200,000 had a 2.4% audit risk (or 6 times as great as the other pass-through entities).

What will you do if you operate your business as sole proprietorship?  It’s important to recognize that being a sole proprietor places greater need on owners to maintain good books and records and follow tax rules.


The amount of gross receipts (fees, sales receipts, and other earnings before any deductions) impacts the audit risk of sole proprietorship. Here’s what the Data Book shows for the government’s 2014 fiscal year:

Gross receipts Percentage of returns audited
Under $25,000 1.0
$25,000 to under $100,000 1.9
$100,000 to under $200,000 2.4
$200,000 or more 2.1

If you’re a sole proprietor, you should simply put on the alert to use good business practices as protection in case of audit.


IRS offices are staffed differently in various locations across the country, enabling some offices to conduct more audits than others. There is no current data on how this impacts your audit risk (in prior years, certain districts such as Manhattan, NY, and Houston, TX were known to have higher audit risks).

Again, should you relocate to a place with little or no IRS coverage? No. Just be prepared to face an audit, use good business practices by carefully tracking your income and expenses and use certified professional accountant.


The type and amount of deductions claimed can flag a return for audit. Because travel and entertainment expenses deducted for business may arguably be more personal in nature, the IRS looks carefully at these write-offs to make certain they are legitimate and that they have been adequately substantiated.

Also IRS computers are purported to select returns of businesses that take unusually high deductions relative to their income. (One government agency reported back in 2004 the average expenses for sole proprietorships.) Once selected, an agent may look a little more closely before deciding whether to commence an examination. This may simply be asking for substantiation of deductions claimed on the return (a process that can be done by mail or phone).

Please note businesses should take every deduction to which they are entitled. However, they must have required documentation and records (e.g., receipts, logs) for these business deductions.

Type of business

Cash businesses are suspected of omitting income because they can; there is little or no paper trail. In fact, cash businesses are said to be a large part of the more than $450 billion tax gap. The tax gap is the spread between what the government thinks it should collect and what it actually collects.

There is an IRS audit guide specifically for cash intensive businesses (e.g., beauty shops, car washes, laundromats, and many other types of small businesses), which instructs agents about what to look for during an audit. Cash businesses should review this guide to learn what they can do to create audit protection, just in case they are selected for examination.


business Plan

There are no statistics or other evidence to show taking a home office deduction is an audit red flag.  According to the Small Business Administration (SBA), 52% of all businesses in the U.S. are home-based, so it’s not likely that the IRS is going after every one of them.

The conclusion that your business is at IRS audit risk under any of these or other categories.  The best course of action: Retain all receipts and other tax papers (even if scanned into your smartphone or desktop), conscientiously record income and expenses, and work with a certified professional accountant.

Related Topics

How to minimize the risks of joint ventures with governments

Three recommendations improving your communication with business person

What are essential requirements for a successful entrepreneur?

4 fundamental Ways Really Increase Your Revenue and Asset in Business

Our free e-booklets are available when you subscribe.  These reference booklets will email to you within 24 hours.

  1. 2014 IRS Data Book
  2. IRS audit guide

In addition, please review our book Building a finance plan geared for Growth at Amazon

Building a finance Plan



Business consultant’s book at Amazon Corner 

Amazon Corner’s Books

4 fundamental Ways Really Increase Your Revenue and Asset in Business

Make more money 8


  1. Sell more
  2. Sell bigger: larger accounts or large profit margin
  3. Spend less: strategically and intelligently
  4. Invest in your business

There are numerous of articles, systems, podcasts, videos, infomercials, webinars, books, and schemes all designed to show you how to do just that.  In addition, friends and family members are sharing the latest and greatest multilevel marketing organization, it’s someone showing you how to quickly buy and flip real estate, buy and sell stocks…etc.

In profitable business, the hard truth is that there are not many shortcuts. Business success and growth usually takes hard work and persistence. Let me suggest that if you are in business for yourself, there are really only four ways to make more money:

Make more money 9

  1. Sell more:

The bottom line is that you need to sell more of something to make more money. If you are a business owner, you don’t need someone to tell you that or to try and sell you his or her wares: You already have products and services to sell.

So the first trick is to expand the business you already have. There are a couple of ways to do just that:

  • Acquire more traffic/customers:  They key to getting more traffic in the door is to expose your business to new people. Market more, make more, it is (almost) as simple as that.  We pay for Facebook’s advertisement creating new prospect clients.
  • Create a new profit center: All great businesses figure out new products to sell and new services to offer. GE sells dishwashers yes, but it also sells jet engines and real estate financing. If you want to grow, you need to expand your offerings too.  Our products and service page just adds an Amazon Corner to serve more to our clients.
  1. Sell bigger:

It’s in two ways:

Make more money 2

First, you can sell to bigger clients and customers – in other words, those with bigger budgets. For instance, if you primarily sell to consumers and other small businesses, you might find that selling your wares to corporations and government entities will yield bigger revenues.

Second, you can sell products with a bigger profit margin. Even selling the same amount of such products will result in more net income.  For online business, you can start with selling someone else’ products which can be found on Amazon Corner; then later you create your own products.  The business did the same work, but made a lot more money.

  1. Spend less:

The important thing to keep in mind when cutting your overhead is to do so strategically and intelligently. You certainly do not want to cut back too much on those areas that generate revenue – advertising, for example.

From your annual budget review, there are probably many areas where you could cut some costs.  If you haven’t done an audit of your business expenses recently, consider doing so now.  Please contact us for a free budget analysis.

  • Insurance
  • Labor
  • Rent
  • Office supplies
  • Product line
  1. Invest in your business:

Naturally, investing is always a smart individual wealth-building strategy, but in this case, we are talking about investing in your business.

Make more money 6

Our physician client took an “expensive factoring” in an amount of $650,000 against his cash flow, $40,000 a month for 12 months.  This calculated risk generates more than $2 million revenue for his practice.  Please contact us for free consultation and business analysis.

In addition, our physician client invested in his office building.  He purchase entire building with 6 offices for $750,000.  He used to pay for his lease approximately $6500 a month.  After his acquisition, his net operating income (NOI) is approximately $8000 a months or his capitalization rate is about 12.8%.

In fact, by investing in your business, acquiring a commercial office building, be it remodeling the premises, paying off debt or buying new equipment, you increase its equity value. Eventually, that equity will become even more valuable down the road.

In conclusion, if you want to make more money from your business, you’ll have to do it, in the words of the famous commercial, “You will have to earn it.”

DAJK Group

Please contact us for free business consultation

Review our book Building a finance plan geared for Growth at Amazon

Building a finance Plan