01
Face rent
Lease rent clause
Keep the recurring stated rent before any concession.
Property evidence · field guide
A free month changes the rent story
Separate face rent from lease-period cash receipts, then ask how the provider treats the concession.
Sources checked November 1, 2026 · Educational document review · No loan offer
Build the evidence before choosing an input
02
Concession
Signed rider with dates and conditions
A free month, credit or waived fee can have different timing and conditions; do not infer it from marketing copy.
03
Comparable treatment
Appraiser’s schedule and provider instruction
Form 1007 has a rent-concessions adjustment line; adjustments to comparable market evidence are not automatically your lease cash-flow calculation.
Fictional 12-month lease
An authored teaching record; amounts and situations are fictional, not market statistics or actual borrower files.
- Face rent: $2,400/month. One full month is free; eleven months are paid.
- Receipts: 11 × $2,400 = $26,400 over the stated 12 months.
- Planning average: $26,400 ÷ 12 = $2,200/month, before vacancy or expenses.
A $200/month planning difference remains even though the lease headline says $2,400.
Turn the record into a usable next step
- 1
Write the actual payment calendar and identify whether the concession is upfront, spread across months or conditional on timely payment.
- 2
Keep refunds, deposits and charges for utilities separate. They should not erase a free-rent month in the cash schedule.
- 3
Give the provider the lease and rider, ask which rent figure it accepts, and keep the concession schedule in your own operating budget even if underwriting uses another amount.
What this evidence does not settle
The example assumes exactly one free month and eleven fully collected payments. It is not a market concession statistic, collection forecast or lending rule.
Sources and scope
- Fannie Mae — Single-Family Comparable Rent Schedule (Form 1007)
Appraisal form fields, concession adjustments and dated market-rent reconciliation; an agency form, not a universal DSCR requirement.
Read November 1, 2026. This is the check date, not a new effective date for the source.
- IRS — Publication 527 (2025), Residential Rental Property
Rent, deposits, repairs and improvements for federal tax reporting; not a lender underwriting formula.
Read November 1, 2026. This is the check date, not a new effective date for the source.
The review steps are DSCRDealCheck’s editorial checklist. Agency guides and consumer mortgage explainers define documents and concepts; they do not establish a DSCR provider’s program rules or guarantee that consumer disclosure requirements apply to business-purpose financing. See the transaction-scope distinction in Regulation Z. Confirm the actual file with the provider and the relevant qualified professional.
Continue the property evidence review
Choose the unresolved document in your file. Each guide addresses a different input or obligation.