What are the IRS guidelines for setting home rental prices? I've heard one can't set rental too low.?

A friend had IRS require her to charge more for her rental. I'd like to read their guidelines.What are the IRS guidelines for setting home rental prices? I've heard one can't set rental too low.?
As long as you charge a ';fair'; amount, you are OK. If going rates for a home like yours is $2000 per month, but you are charging $500, then you will have an issue. Just be within a few hundred bucks of reasonableness and you will be OK.What are the IRS guidelines for setting home rental prices? I've heard one can't set rental too low.?
it's because if you don't make a profit in renting, they don't tax you the same as regular income for it... i've never actually heard of them requiring someone to charge more and i'm sure they would have to provide the article that requires they charge a minimum amount.
My tax accountant told me a few years ago that you do have to charge a fair market value for a rental (that is, you have to enter a fair market value as income on your Schedule E form, which lists income from things like rental property). The only way you can get around this is to rent the place to family members.





For example, my wife and I have a rental condo that should rent for $1600 a month. But, we rent it to my wife's kids for only $800 a month to help them through college. And, my tax guy said that's acceptable, since it's being rented out to family members.
The guidelines are based upon average rentals for the specific locale. If one is not charging close to that range, it may be considered a 'gift' to the tenants.