Fannie Mae rental income: choose the section before the percentage
The September restructure separates subject, short-term, non-subject, and departing-residence scenarios.
Start with the property
Determine whether the rent comes from the property securing the loan, another property, or a departing residence. Record whether the documentation comes from a lease or tax returns. Those choices determine which section and inputs apply.
The factors are different
For a supported subject long-term lease example, multiplying $2,800 by 75% produces $2,100 before the property payment. A supported short-term market-rent scenario under the separate subject-property guidance uses 50%. Tax return analysis uses documented income, expenses and eligible add-backs instead of a lease factor.
Finish with treatment
After calculating cash flow, review the rule governing whether it may increase qualifying income, offset the property payment only, or increase monthly liabilities. The selected documentation, property use and borrower experience can all matter.