Are you buying a new home and keeping your current one as a rental instead of selling it? Fannie Mae just rewrote the rules on how that rent counts. The update came out September 2, 2026. Lenders can use it today. By November 1, 2026, every lender must use it. Here is what changed and what it means for you.
No More Lease Agreements
This is the big change. You can no longer use a signed lease to prove rent on the home you are leaving. Even a brand-new, signed lease does not count.
Instead, the lender must use one of these three:
- A full appraisal that includes market rent
- An appraiser’s rent report (called a Form 1007)
- A market study using at least three similar rentals nearby, from sites like Zillow, Redfin, or the MLS
If your old home has more than one unit, the rent study only covers the unit you lived in. Units with renters already in them follow different rules, and the lender will also need your most recent tax return for those units.
The Math: How Much Rent Counts
Only 75% of the market rent counts. The other 25% covers empty months and repairs. From there:
- Take 75% of the monthly market rent.
- Subtract the full monthly payment on that home (loan, taxes, insurance, and any HOA dues).
If the answer is positive, it only cancels out the old home’s payment. It is not added to your income. If the answer is negative, the shortfall counts as a monthly bill against you on the new loan.
Every file is different. The rent, your payment, and your savings all change the answer. Run your real numbers with us below.
What are you looking to do?
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Savings You Need to Show
If you have been a landlord for less than 12 months, you need six months of the old home’s payment in savings. That is on top of any savings the lender needs for other homes you own with a loan.
Why This Matters If You Are Moving
This comes up all the time with people who relocate: PCS orders, job transfers, anyone who does not want to sell before they move. The new rule means your lender needs to line up the rent study or appraisal early, not at the last minute. Let’s find out if this path works for you, or if a different loan setup fits better.
Frequently Asked Questions
Can I use a lease to prove rent on my old home?
No. Fannie Mae’s rule says leases cannot be used for the home you are leaving. You need an appraisal with market rent, an appraiser’s rent report, or a market study with three similar rentals.
How much of the rent counts?
Only 75% of the monthly market rent. This covers empty months and repairs. The lender then subtracts the old home’s full monthly payment.
What if the math comes out negative?
If 75% of the rent does not cover the old home’s payment, the shortfall counts as a monthly bill against you on the new loan.
What if the number is positive?
A positive number only cancels out the old home’s payment. It cannot be added to your income to help you qualify for more.
Do I need extra savings?
Yes, if you have been a landlord for less than 12 months. You need six months of the old home’s payment in savings, on top of any savings required for other homes you own with a loan.
Does this apply to VA loans too?
No. This rule is from Fannie Mae and applies to conventional loans. VA is simpler: no lease is required and there is no equity test. The expected rent on the home you are leaving is used to offset that home’s payment on your new VA loan. It cannot be added to your income. If your next purchase will use a VA loan, that is the rule we underwrite to.
When does the new rule start?
Fannie Mae published it September 2, 2026 and told lenders to use it right away. It is required on every loan application dated November 1, 2026 or later. Some lenders may still use the old rule until then, so ask which version your file will follow.