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.
Why that helps a Georgia decision
Because converting the departing home to a rental takes it outside the homestead assessment cap, and that is a decision worth pricing before making.
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 homesteaded. Run the number, compare it against the cost of losing the cap and the six-month reserve requirement, then decide.
In a state where the median metro takes more than two months to go pending, that is a decision a lot of Georgia owners end up facing, and making it with the figures in front of you is better than making it in month four of a stale listing. 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.
Can I price the rental option before giving up the homestead cap?
Yes. None of the accepted methods requires a tenant, so you can establish market rent while the property is still listed and still homesteaded, then weigh that against losing the cap and meeting the six-month reserve requirement.
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. Homestead exemption status, local opt-out decisions and assessment practice change and depend on your facts; your county tax commissioner, your CPA or a Georgia attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.