The Appraisal 1007 Form Explained: What It Actually Measures
Form 1007 is the Single-Family Comparable Rent Schedule — an appraiser's opinion of a property's fair market monthly rent, based on comparable rental listings and leases nearby. On a DSCR loan, this figure, not the purchase price or list price, is what typically feeds the income side of the ratio.
NightYield Editorial
STR-DSCR research & underwriting desk
Published 2026-07-18
What the appraiser actually does to fill it out
The appraiser identifies at least three comparable rental properties in the same market — similar size, condition, bedroom/bathroom count, and location — and documents their actual or listed rents. Adjustments are made for differences between the subject property and each comparable, arriving at a final opinion of fair market monthly rent for the subject property.
This is a separate exercise from the value appraisal, though the two are often ordered together and delivered in the same report. The value opinion supports the loan-to-value calculation; the 1007 rent figure supports the DSCR calculation. They answer different questions.
Why the 1007 figure and your actual lease (or STR projection) can differ
For a long-term rental with an existing signed lease, some lenders will use the lower of the 1007 market-rent figure or the actual lease amount — a conservative approach that protects against an inflated or non-arm's-length lease. For a vacant property or new purchase, the 1007 figure often stands alone as the qualifying income.
Short-term rentals are a different case entirely — the 1007 form is built around long-term lease comparables, not nightly rates, so STR income typically needs to be qualified through a separate projected-income methodology rather than the 1007 form itself. That distinction is covered in qualifying on projected Airbnb income.
| Property situation | Typical qualifying income source |
|---|---|
| Long-term rental, existing lease | Lower of 1007 market rent or actual lease |
| Long-term rental, vacant/new purchase | 1007 market rent opinion |
| Short-term rental (Airbnb/STR) | Projected STR income methodology, separate from 1007 |
Why this number is worth scrutinizing before you rely on it
Because the 1007 figure directly drives the DSCR ratio, an appraiser using stale, too-distant, or poorly-matched comparables can understate or overstate the qualifying income. It's reasonable to review the comparables listed on the form and raise a reconsideration of value if they don't reflect the actual local rental market you know.
Key takeaways
- Form 1007 is the appraiser's opinion of fair market monthly rent, built from at least three comparable rentals.
- It's a separate exercise from the value appraisal, even though they're often delivered together.
- For leased long-term rentals, lenders often use the lower of the 1007 rent or the actual lease amount.
- STR income isn't typically qualified through the 1007 form — it uses a separate projected-income methodology.