source:
  type: guide
  id: hud-4000-1-ii-c-required-analysis-and-reporting
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Required
    Analysis and Reporting (01/24/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Required
    Analysis and Reporting (01/24/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-c-required-analysis-and-reporting-full
  canonical_id: hud-4000-1-ii-c-required-analysis-and-reporting-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Required
    Analysis and Reporting (01/24/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Required
      Analysis and Reporting (01/24/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: c. Required Analysis and Reporting (01/24/2022) The Appraiser
      must obtain a copy of the lease from the Mortgagee. The Appraiser must analyze
      and report the terms of the ground lease, including the amount of the Ground
      Rent, the term of the lease, if the lease is renewable, if the lessee has the
      right of redemption (the right to obtain a Fee Simple title by paying the value
      of the Leased Fee to the lessor, thereby canceling the Ground Rent), and if
      the Ground Rent can increase or decrease over the life of the lease term. The
      Appraiser must estimate and report the value of the Leasehold Interest. In valuing
      the Leasehold Interest, the Appraiser must apply the appropriate techniques
      to each of the approaches to value included in the analysis. • In the cost approach,
      the value of the land reported must be its Leasehold Interest. • In the GRM
      income approach, the sales used to derive the GRM factor must be based on properties
      under similar Ground Rent terms (or be adjusted to similar Ground Rent terms).
      • In the sales comparison analysis, the comparable sales must be adjusted for
      their lack of similarity to the subject in the “Ownership Rights” section of
      the Sales Comparison Approach (SCA) Grid. 8. Unimproved Property Appraisal
  judgment: false
