Rent Increases

The window for submitting rent increase requests is open from October 1st to December 31st. All rent increases must be submitted via MHDC’s Asset Management Reporting System (AMRS).  MHDC-approved rent increases are issued on Form Schedule II.  

Effective May 1, 2025 – The total housing cost for all new, vacant and vacated units after April 30, 2025 shall not exceed applicable program-specific rent limits. Rent increases for these units will be subject to HUD's annual published income and rent limits set for each county within Missouri. Rent increases still must be submitted reviewed by MHDC for compliance testing, and approval will be issued on Form Schedule II.

Units occupied April 30, 2025 or earlier will continue to be subject to MHDC’s existing policy for rent increases in effect prior to May 1, 2025 policy change. Family designated developments have the option to request either a non-budget-based rent increase subject to compliance testing or a budget-based rent increase which would allow for a rent increase up to a maximum amount as determined by MHDC. Senior designated developments are capped at the greater of 2% or the prior year Social Security Cost of Living Adjustment (COLA). Developments electing Average-Income Set-Aside, the income and rent levels will be assigned from the beginning based on the market study submitted at the time of application. MHDC will input the income levels into AMRS so developments can track the range for every potential income and rent level. All MHDC-approved rent increases are issued on Form Schedule II.  

Rent Increase Requirements and Procedures

To be considered for a rent increase, the following items must be submitted:

• Annual Financial Statement and Budget are submitted by the due date in AMRS.
• Current Utility Allowances have been submitted in AMRS.
• Current Rent Roll must be uploaded in ARMS. The current rent roll must contain each unit, bedroom type, rent amount, rent type, and the lease move-in/renewal effective dates for each resident.
• A signed copy of MHDC’s Exhibit A-11: Owner/Agent’s Certification of Rent Increase Notice to Residents.

MHDC Compliance Testing

When a rent increase is received by MHDC, the request is reviewed and tested for the following:

• The development must be in compliance with all MHDC policies and procedures.
• AOD reporting must be in compliance.
• The proposed rents may not exceed maximum Section 42, HOME, or other applicable program rent limits.
• If applicable, the development’s mortgage must be current.

Rent increases MUST NOT be implemented before the effective date or before a signed Schedule II has been provided to the owner or the managing agent. In the event the owner/management has not complied with the list above, the Schedule II will be placed on hold until the non-compliance is corrected.

• Budget Based Rent Increase Requirements and Procedures - Family Properties
• Rent Increase Requirements and Procedures - Senior Properties
• FAQ Rent Increases