Fair Rent Law and Legal Definition
Fair rent is the reasonable rent for a private property fixed and registered by a rent officer. Fair rent is fixed based on the size, condition, and usefulness of the property. In fixing fair rent, the scarcity of rented property is not taken into account and therefore fair rent is usually lower than the market rent.
Fair rent is calculated in lieu of mortgage interest, other financing costs and depreciation related to certain property, including land, buildings and non movable equipment. It is calculated only once; at the time the facility begins operation. The amount is derived from the base value as determined in the facility's certificate of need approved and issued by the appropriate state agency. [Connecticut Ass'n of Not-For-Profit Providers for the Aging v. Department of Soc. Servs., 244 Conn. 378 (Conn. 1998)]