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 market rent for a one-unit property, reconciling comparable rentals into an opinion of market rent. Two-to-four-unit properties use Form 1025.
Why it carries the weight now
Until the September 2026 restructuring, a fully executed lease was the usual way to document departing-residence rent. Fannie Mae B3-3.8-05 now states that lease agreements are not permitted for any departing residence, and the content formerly at B3-3.1-08 has moved.
Market rent must instead come from a complete appraisal including market rents, a Form 1007, or a market analysis tool supported by at least three comparable rentals. A lease reflects what one tenant agreed to pay, which may sit above or below market.
Where this helps a North Carolina decision
Mostly in Asheville, and to a lesser extent Rocky Mount.
Those are the two markets where renting the departing home is a genuine option rather than a theoretical one, because the marketing times are 83 and 71 days respectively. Deciding whether to convert is a real fork, and it helps to be able to price it.
Since none of the accepted methods requires a tenant, you can establish what the property would rent for while it is still listed and still your residence. Run the number, compare it against carrying both payments and against selling first, then decide. See the rental conversion page.
What happens to the number
Gross rent times 75%, with the remaining 25% treated as absorbed by vacancy and maintenance, less the property's full PITIA. A positive result offsets that property's own payment; a negative result is added to your debt ratio. It does not become qualifying income either way.
Six months of PITIA reserves apply on the vacated property where the borrower has less than 12 months of property management experience.
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.
Can I use a signed lease instead of Form 1007?
Not for a departing residence. Fannie Mae B3-3.8-05 states that lease agreements are not permitted for any departing residence; market rent comes from an appraisal including market rents, a Form 1007, or an analysis supported by at least three comparable rentals.
Do I need a tenant before I can use rental income?
No. None of the accepted methods requires one, so you can document market rent while the house is still listed and still your residence, then decide whether converting actually makes sense.
How much of the market rent counts?
75% of gross rent, with the remaining 25% treated as absorbed by vacancy and maintenance, less the property's full PITIA. A positive result offsets that property's own payment rather than adding to qualifying income.
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. Revaluation schedules, exclusion eligibility and excise tax treatment depend on your facts; your county assessor, your closing attorney, your CPA, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.