COS Market Analysis & Trends 2

Question 1

Which economic indicator is most directly used to assess the demand side of a local rental housing market?

Accepted Answer

Unemployment rate

Answer

The unemployment rate reflects local residents' ability to pay rent, directly impacting rental housing demand.

Question 2

A market study shows that a competing property's concessions include two months free rent on a 12-month lease. What is the effective monthly rent if asking rent is $1,200?

Accepted Answer

$1,000

Answer

Two months free on a 12-month lease means tenants pay 10 months out of 12, so $1,200 × 10/12 = $1,000 effective monthly rent.

Question 3

In a market analysis for affordable housing, what does 'AMI' stand for?

Accepted Answer

Area Median Income

Answer

AMI stands for Area Median Income, the benchmark used to determine affordability thresholds for HUD-assisted housing programs.

Question 4

When performing a competitive market analysis, a COS specialist should primarily compare units based on:

Accepted Answer

Unit size, amenities, location, and net effective rents

Answer

A valid competitive comparison requires evaluating equivalent unit characteristics alongside the true cost to tenants after concessions.

Question 5

A submarket experiencing rapid employment growth but stagnant housing inventory is likely to see:

Accepted Answer

Rising occupancy rates and increasing rents

Answer

When job growth outpaces housing supply, competition for units increases, driving both occupancy and rents upward.

(COS) Certified Occupancy Specialist Practice Test

(COS) Certified Occupancy Specialist Practice Test

COS Market Analysis & Trends 2