Clear Capital’s Rental AVM can now be used as an alternative to the Single-Family Comparable Rent Schedule (Form 1007) and manual rent analysis for lending decisions, saving hundreds of dollars in costs and reducing five days of turn time to seconds.
Rental AVM provides instant and accurate market rent estimates with ranked comparables (including condition and quality) for compliant rental income validation across 105 million properties that enable loan officers and brokers to establish greater certainty with borrowers earlier in the process and quickly close more deals.
What are Fannie Mae’s new selling guide changes for rental income?
On September 2, 2026, Fannie Mae issued Selling Guide Announcement SEL-2026-08, restructuring its rental income policy. Departing residences now have their own framework (B3-3.8-05) built on market-supported rents rather than lease agreements.
Under the new policy, for all loans with application dates on or after November 1, 2026:
- Lease agreements are not permitted for any departing residence. Lenders must document monthly market rents instead.
- Acceptable documentation includes market analysis tools used to determine gross rental income, a complete appraisal with market rents, or a Form 1007.
- When using a market analysis tool, the lender must obtain at least three comparable rental properties.
Lenders are encouraged to adopt immediately, as the policy is mandatory.
How can lenders document departing residence market rents quickly and accurately?
Lenders can use Clear Capital’s Rental AVM as a market analysis tool, to document departing residence market rents instantly, at scale, and with comparable support that holds up in a loan file. Every fully supported Rental AVM combines a market rent value with ranked comparable rentals that include condition and quality insights, aligning with the B3-3.8-05 documentation requirement. This eliminates the need for underwriters to manually assemble comps from public listing sites, saving time and costs.
How does Rental AVM select comparables?
The comparables selected in Rental AVM are ranked by CompRank, Clear Capital’s proprietary comparable-ranking algorithm. CompRank weighs property characteristics including condition and quality, which are the dimensions that separate credible rent support from raw listing pulls, and are the same considerations an appraiser applies on a Form 1007.
Does Rental AVM provide coverage and validation at national scale?
Rental AVM includes hard-to-source rental data across 105 million properties nationally. This coverage is established through Clear Capital’s analysis and benchmarked against appraiser-completed Form 1007s. Recent testing with top lenders showed Rental AVM’s estimates landing significantly closer to actual leased values than traditional estimates. This coverage and accuracy allows lenders to support a consistent departing residence workflow across their entire footprint, not a tool that works in some markets and falls back to appraiser-completed Form 1007 in others.
How can I get started using Rental AVM in lieu of Form 1007?
Lenders can take advantage of a Form 1007 alternative for departing residences but only if they use a tool that delivers comparable-backed support. Rental AVM was built to suit this need: instant market rents, ranked comparables including condition and quality, and 105 million properties of validated national coverage.
We’re here to help you get started with Rental AVM prior to mandatory compliance arriving November 1, 2026 so you can reduce costs and close more deals quickly!
Fill out the form below to get started with Rental AVM.