# 24 C.F.R. § 248.123 (2026): Determination of Federal cost limit

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_123

## Section

- **Citation:** 24 C.F.R. § 248.123 (2026)
- **Heading:** Determination of Federal cost limit
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 24 CFR: Housing and Urban Development / Chapter II: OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT / Part 248: PREPAYMENT OF LOW INCOME HOUSING MORTGAGES / Subpart B: Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 / § 248.123: § 248.123   Determination of Federal cost limit.

## Text

(a)
Initial determination.
For each eligible low income housing project appraised under § 248.111, the Commissioner shall determine whether the aggregate preservation rents for the project exceed the amount determined by multiplying the number of dwelling units in the project, according to appropriate unit sizes, by 120 percent of the section 8 existing fair market rent for the appropriate unit sizes.
(b)
Relevant local markets.
If either the extension or transfer preservation rent for a project exceeds the amount determined under paragraph (a) of this section, the Commissioner shall determine whether such extension or transfer preservation rent exceeds the amount determined by multiplying the number of units in the project, according to the appropriate unit sizes, by 120 percent of the prevailing rents in the local market area. The relevant local market, and the prevailing rents in such relevant local market, shall be determined on the basis of the appraisal conducted by the appraiser selected by the Commissioner pursuant to § 248.111 and any other information that the Commissioner determines is appropriate. If there are no comparables in the relevant local market and it is not otherwise possible to determine prevailing rents in that area, the section 8 existing fair market rent shall be the sole measure for determining the Federal cost limit.
(c)
Effect.
The extension or transfer preservation rent for an eligible low income housing project appraised under § 248.111 shall be considered to exceed the Federal cost limit only if the extension or transfer preservation rent exceeds the amount determined under paragraphs (a) and (b) of this section.

## Nearby sections

- [24 C.F.R. § 248.101 (2026) § 248.101   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_101.md)
- [24 C.F.R. § 248.103 (2026) § 248.103   General prepayment limitation.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_103.md)
- [24 C.F.R. § 248.105 (2026) § 248.105   Notice of intent.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_105.md)
- [24 C.F.R. § 248.111 (2026) § 248.111   Appraisal and preservation value of eligible low income housing.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_111.md)
- [24 C.F.R. § 248.121 (2026) § 248.121   Annual authorized return and aggregate preservation rents.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_121.md)
- [24 C.F.R. § 248.123 (2026) § 248.123   Determination of Federal cost limit.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_123.md)
- [24 C.F.R. § 248.127 (2026) § 248.127   Limitations on action pursuant to Federal cost limit.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_127.md)
- [24 C.F.R. § 248.131 (2026) § 248.131   Information from the Commissioner.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_131.md)
- [24 C.F.R. § 248.133 (2026) § 248.133   Second notice of intent.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_133.md)
- [24 C.F.R. § 248.135 (2026) § 248.135   Plans of action.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_135.md)
- [24 C.F.R. § 248.141 (2026) § 248.141   Criteria for approval of a plan of action involving prepayment and voluntary termination.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_141.md)
- [24 C.F.R. § 248.145 (2026) § 248.145   Criteria for approval of a plan of action involving incentives.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_145.md)
- [24 C.F.R. § 248.147 (2026) § 248.147   Housing standards.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_147.md)
- [24 C.F.R. § 248.149 (2026) § 248.149   Timetable for approval of a plan of action.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_149.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_123. Check the current official text before relying on it. Not legal advice.