The idea of overpaying for rent is a tricky one. More often than not, the tenants always say they are overpaying and the landlords say everyone is underpaying. Finding the balance in between the two, or the market rents, can be tricky because the rental market – and thus the fair rent amount – change all of the time depending on both national regional and local factors. Every rental market has its own dynamics and the going rate for the exact same apartment can be radically different depending on where that unit is located.

The basis of most government assistance programs and other calculations based on the monthly rent comes from the U.S. Department of Housing and Urban Development (HUD). These numbers are adjusted every year and cover the entire United States by either metropolitan statistical area or by county and cover apartments ranging from studios to four bedrooms. However, realistically these numbers are always dated since the rental market changes so frequently and they are often based on earlier data, so they may be considerably off target if the local housing market has underwent significant changes recently. If interested, these Fair Market Rents (FMRs) are public available through the HUD website: www.huduser.org

Beside this, renters should also be aware of any state or local rent restrictions or caps. For example, a number of states have laws on the books that prevent landlords from charging certain amounts, based on different factors depending on the state in question. Similarly, many urban areas – especially older ones – have rent control on some apartments, which may cap the amount that the landlord can legally charge for rent. However, bear in mind that many other states have no such laws or rules and many urban areas do not have rent control. So figure out what – if any – restrictions on rent amounts apply to the area you have in mind.

The HUD FMRs should give you some basic idea of the amounts to expect and being aware of the state or local restrictions will make you more informed, but the rest of the process is really just comparison shopping. As a general rule, newer apartments cost more than older ones; apartments in nicer areas cost more than those in run down areas; and the more amenities that are offered, the more you will be expected to pay. Nevertheless, most landlords and property owners have considerable freedom to set their own prices, so a lot depends on how desperate the landlord is to get the properties rented. This means that there is always a reasonable chance of getting a great apartment well below its actual rental value.

Although many people do not know it, many apartments are also negotiable. While those managed by large management companies will frequently refuse to negotiate, independent properties – especially apartment buildings as opposed to apartment complexes – may be willing to negotiate. Again, this depends in large part on the conditions faced by the landlords, but it is not uncommon for some landlords to agree to a rent reduction in exchange for you signing the lease immediately and calling off the search. Whether negotiated or not, shopping around and comparing prices is very important.