Form 1007: The Comparable Rent Schedule
Program and regulatory figures verified September 17, 2026. Details change; confirm your scenario with us.
If you plan to keep the California house you are leaving, this form is what turns that plan into qualifying income.
What the form is
A Single-Family Comparable Rent Schedule. An appraiser identifies comparable rental properties near yours and reports what they rent for, producing an independent view of market rent. It is the rental counterpart to a sales-comparison appraisal, and Fannie Mae requires it, or Form 1025 for two-to-four-unit properties, wherever a subject property generates rental income used in qualifying.
Why the lease alone is not enough
A lease shows what one tenant agreed to pay. That may be above market, below market, or between relatives. The rent schedule is the check on it. Both are needed: Fannie Mae B3-3.1-08 allows a fully executed current lease to document income on a principal residence converting to an investment property precisely because there is no rental history on the tax returns yet.
The California layer
The rent figure is not only an underwriting input here. California's Tenant Protection Act caps annual increases at 5 percent plus local CPI, or 10 percent, whichever is lower, unless the property is exempt. A separately alienable single-family home or condominium is exempt where the owner is not a REIT, a corporation, or an LLC with a corporate member, but only where the tenant received written notice in the exact statutory language.
So the rent you set at the start matters more in California than in states without a cap, because your ability to move it later may be limited. That is covered on the rental conversion page.
Timing
The lease generally needs to be executed and the rent schedule ordered alongside the appraisal work. Both take time. Raising it on a first call costs nothing; raising it the week of closing can cost the transaction.
See how this compares with the other structures.
Proposition 19 eligibility and landlord notice requirements are legal and tax questions. Your CPA, a California attorney, and your county assessor own those answers. We flag them because they change the numbers we underwrite.
Frequently asked questions
What is a Form 1007 rent schedule?
A Single-Family Comparable Rent Schedule. An appraiser reports what comparable nearby properties rent for, giving the lender an independent market-rent figure supporting the income in your lease. It applies to one-unit properties; two-to-four-unit properties use Form 1025.
Do I need both a lease and a Form 1007?
Generally yes. The lease documents income on a property with no rental tax history, which is the situation when a principal residence converts to an investment property. The rent schedule confirms the figure is consistent with the market.
Does California rent regulation affect the rent I put in the lease?
It can. The Tenant Protection Act caps annual increases at 5% plus local CPI, or 10%, whichever is lower, unless the property qualifies for an exemption and the required notice was given. Since your ability to adjust later may be limited, the initial figure carries more weight here than in states without a cap.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Proposition 19 eligibility, assessment practice, and landlord-tenant rules change and depend on your facts; your county assessor, your CPA or a California attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.