Form 1007 and How Departing Residence Rent Gets Documented
Program and regulatory figures verified September 19, 2026. Details change; confirm your scenario with us.
When a lease stopped being acceptable evidence, this form went from a supporting document to the main one.
What the form is
Form 1007, the Single-Family Comparable Rent Schedule, is completed by an appraiser to establish the market rent for a one-unit property. It sets out comparable rentals and reconciles them into an opinion of market rent for the subject, in the same way a sales comparison approach reconciles comparable sales into an opinion of value.
For two-to-four-unit properties the corresponding form is Form 1025.
Why it carries more weight now
Until the September 2026 restructuring, a fully executed lease was the usual way to document rent on a departing residence, with a rent schedule supporting it. Fannie Mae B3-3.8-05 now states that lease agreements are not permitted for any departing residence.
The reasoning is visible in the policy itself: the new framework relies on market-supported rents rather than lease agreements. A lease shows what one tenant agreed to pay, which may be above market, below market, or an arrangement between relatives. Market rent evidence is harder to arrange around.
The practical effect is that the documentation has to be produced rather than signed. That takes time, and it belongs early in the process rather than late.
The three acceptable methods
- A complete appraisal report that includes market rents.
- A Single-Family Comparable Rent Schedule on Form 1007 for the occupied unit.
- A market analysis tool, supported by at least three comparable rental properties.
Which route fits depends on whether an appraisal is being ordered anyway and on the property type. It is a question worth asking at the start of a file rather than discovering in underwriting.
What happens to the number
Whatever market rent is established, the qualifying calculation reduces it. Gross rent times 75%, with the remaining 25% treated as absorbed by vacancy and maintenance. Then the property's full PITIA is subtracted.
A positive result offsets that property's own payment. A negative result is added to your debt ratio. It does not become qualifying income in either case, which is the single most misunderstood part of the current rule.
Worked through with the Florida specifics on the rental conversion page.
Timing
These requirements bind for loan applications dated on and after November 1, 2026, and lenders were encouraged to adopt them immediately after the September 2, 2026 publication. For a file being planned now, assume the new framework applies and be pleasantly surprised if an earlier application date lets the old one stand.
Frequently asked questions
What is Form 1007?
The Single-Family Comparable Rent Schedule, completed by an appraiser to establish market rent for a one-unit property using comparable rentals. Two-to-four-unit properties use Form 1025 instead.
Can I use a signed lease instead of Form 1007 for my departing home?
Not under the current rule. Fannie Mae B3-3.8-05 states that lease agreements are not permitted for any departing residence. Market rent must come from a complete appraisal including market rents, a Form 1007 for the occupied unit, or a market analysis tool supported by at least three comparable rentals.
Why did Fannie Mae stop accepting leases for departing residences?
The announcement describes a new framework that relies on market-supported rents, reserve requirements and PITIA offset limitations rather than lease agreements. A lease reflects what a single tenant agreed to pay, which may be above or below market or arranged between related parties; market rent evidence is more difficult to arrange around.
How much of the market rent counts?
75% of gross rent, with the remaining 25% treated as absorbed by vacancy and maintenance. The property's full PITIA is then subtracted. A positive result offsets that property's own payment rather than adding to qualifying income; a negative result is included in the debt ratio.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Homestead eligibility, portability, and landlord-tenant rules change and depend on your facts; your county property appraiser, your CPA or a Florida attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.