Question

Discussion Question:

1.  Matt talks a lot about "Fair Market Rent" and how realtors and landlords make more money in poor neighborhoods than in nicer ones.  How is it possible to make more profit from renting run-down properties to poor people than from renting luxury apartments to wealthy people? What does this tell us about the relationship between wealth and poverty?

Answer 1

"Fair Market Rent" is the amount of money for the property that one can lease or rent if it is available in time. This is also decided by housing development to identify how much rent should be covered for the individual with a lower income or higher income. To calculate the "Fair Market Rent" it is important to identify the size of the property, their location, and type. This is the amount of money of specific property if it is open for leasing at the moment.

Realtors and landlord money in the poor neighborhood as compare to rich neighborhoods share market rent consigns the voucher and improvise the empower rest neighborhoods. The voucher holder can live anywhere in the specific area according to landlords if they meet the price restrictions. The tendency to stay in a lively neighborhood is familiar because of its robust mobility counseling programs. In many countries, the landlord refuses to take the vouchers also but some of the landlords consider their living. Families generally do not have many choices instead of having a voucher. The housing authority also has set down their own choice of rent for the people who are taking home on lease.

It is possible to make making more profit from renting rundown property to the poor people as compared to rent the luxury apartment to the wealthy people is very difficult because it is very important to identify the group who can pay the rent in the better way. The advantage of making the profit from renting rundown to poor people because this involves a high margin of profit. This has been also observed the people with low income in urban neighborhoods are able to pay better as compared to rich people. They also contended that slum is a prime money maker because they pay well in the rent based on the market value. But sometimes the poor also experience the high rate of housing exploitation because of the increased rate of rent. On the other hand, renting a luxury apartment for wealthy people is a better option but sometimes it is very difficult to make a profit from them.

The relationship between wealth and poverty is that based on an inverse relationship in which wealth generally generated by means of money while poverty affects the many issues in the real state.