Technical appendices from: Affordable housing without public subsidies: rent-setting practices in small rental properties

Rental housing affordability is a severe problem for low- and moderate-income families across the US. While some renters benefit from subsidies or rent-regulation, most low-income renters live in unsubsidized, unregulated units, particularly in low-cost 1- to 4-unit properties. Some of these small rental properties are low-cost because they are low quality or are in low-demand neighborhoods, but there has long been speculation that many of these units are low-cost because their owners set rents below market. However the extent to which owners set rent below market, which owners do so, and why, is unknown. I conducted a nationwide survey with follow-up interviews of the owners of small rental properties to understand below-market rent-setting. I find that nearly half of small rental owners choose to set rents below market. These discounts are substantial, averaging 16% below market. Owner's rent-setting strategies are diverse and there do not appear to be sharp distinctions between owner...