Freddie Mac Form 72 is the standardized appraisal report used to value two- to four-unit residential income properties when the loan will be sold to Freddie Mac. It is identical to Fannie Mae Form 1025, so one completed report satisfies both government-sponsored enterprises. The appraiser inspects every unit, analyzes the rental income, and develops two separate valuation approaches to arrive at a final opinion of market value. One important date to keep in mind: by November 2, 2026, the current form-based layout will be replaced by the new UAD 3.6 data standard for all appraisals on loans delivered to either GSE.
Which Properties Qualify
Form 72 covers buildings with two to four self-contained residential units, including duplexes, triplexes, and fourplexes.1Freddie Mac. Guide Section 5605.9 Each unit must have its own kitchen and bathroom to count as a separate dwelling. Properties in planned unit developments, condominiums, and co-op projects are also eligible as long as the unit count stays within the two-to-four range.2Fannie Mae. Appraisal Report Forms and Exhibits
Single-family homes use a different form (Form 70 / Fannie Mae 1004). Buildings with five or more units fall under commercial appraisal standards and sit outside the GSE single-family framework entirely. Mixed-use properties may qualify if the residential portion dominates, but GSE guidelines limit the non-residential share, so confirm the lender’s requirements before ordering the appraisal.
What the Appraiser Needs From the Owner
Having financial and physical records ready before the inspection prevents follow-up requests and keeps the report on schedule. Gather the following:
- A current rent roll listing every unit with tenant name, monthly rent, lease start and end dates, and occupancy status.
- Copies of active lease agreements so the appraiser can verify rent amounts, security deposits, and which party pays each utility.
- Twelve months of operating expense records covering property taxes, insurance, maintenance and repairs, management fees, and owner-paid utilities.
- Documentation of any recent capital improvements, such as a new roof, updated plumbing, or unit remodels, with dates and costs.
The rent and income data that used to live on a separate Operating Income Statement is now captured directly within Form 72, and the standalone addendum is no longer expected through the submission portal.3Freddie Mac. Uniform Appraisal Dataset (UAD) 3.6 FAQ
How the Property Is Valued
Form 72 requires two separate valuation methods. Using both cross-checks the result and reflects how buyers of small income properties actually think: part homeowner comparing sale prices, part investor analyzing rental returns.
Sales Comparison Approach
The appraiser selects at least three comparable sales of similar two- to four-unit properties that have closed recently in the same market area. For each comparable, the report shows multiple units of comparison: sales price per square foot of gross building area, price per unit, price per room, and the gross rent multiplier.1Freddie Mac. Guide Section 5605.9 Each comparable is adjusted for differences in location, size, condition, unit count, and amenities. The appraiser then reconciles the adjusted prices and explains which factors investors in the area weigh most heavily.
Income Approach
The income approach on this form uses the Gross Rent Multiplier. The GRM is calculated by dividing a comparable property’s sale price by its total gross monthly rent, and that multiplier is then applied to the subject property’s estimated gross monthly market rent to produce an indicated value. For example, a comparable that sold for $600,000 while collecting $5,000 per month in gross rent produces a GRM of 120; applied to a subject property with $4,800 in estimated monthly market rent, the indicated value is $576,000.
Rent Schedule
The rent schedule lists each unit’s current actual rent alongside the appraiser’s estimate of market rent. The market rent estimates must be supported by at least three comparable rentals from similar nearby properties with current rental data.1Freddie Mac. Guide Section 5605.9 When an actual rent sits noticeably above or below the market rent estimate, the appraiser explains why in the comments.
Condition and Quality Ratings
The appraiser rates the property using Uniform Appraisal Dataset codes. Condition runs from C1 (newly constructed, no depreciation) through C6 (substantial damage affecting safety or structural integrity). Quality runs on a parallel scale from Q1 (highest) to Q6 (basic).4Fannie Mae. Property Condition and Quality of Construction of the Improvements These standardized ratings let underwriters compare properties consistently rather than relying on subjective words like “good” or “fair.”
What Happens After the Appraiser Finishes
The lender, not the appraiser, uploads the completed report to the Uniform Collateral Data Portal.5Freddie Mac. Uniform Collateral Data Portal General User Guide UCDP currently accepts files in the UAD 2.6 XML format (up to 15 MB) and the newer UAD 3.6 format submitted as a ZIP (up to 60 MB) containing the XML, a PDF of the report, and an image folder.
Once the file is in, UCDP returns automated feedback that includes risk scores and risk flags generated by Fannie Mae’s Collateral Underwriter system.6Fannie Mae. Uniform Collateral Data Portal Those flags point to possible data inconsistencies, unusual adjustments, or comparable selections that fall outside expected parameters. The lender reviews the feedback with its own underwriting standards and may send the report back for corrections or added support before moving the loan forward.
If the Value Comes In Low
When the appraised value falls below the purchase price or the expected value, the borrower can ask for a Reconsideration of Value. Fannie Mae allows each borrower one ROV per appraisal report.7Fannie Mae. Reconsideration of Value (ROV) The lender creates and provides the ROV form and forwards the request to the appraiser.
A useful ROV request supplies specific factual information the appraiser may not have had: comparable sales that closed after the original report, corrections to property details like square footage or renovation dates, or lease data showing higher market rents than the appraiser used. Vague complaints about the value, or pressure to hit a target number, are not permitted. Freddie Mac’s Appraiser Independence Requirements allow lenders to ask an appraiser to correct factual errors, provide further support for conclusions, and consider additional market data, but prohibit anyone involved in loan origination from communicating a desired value or loan amount to the appraiser.8Freddie Mac. Multifamily Appraiser Independence Requirements FAQ If the ROV leads to changes, the appraiser updates the report and adds comments explaining the revisions.
The November 2, 2026 UAD 3.6 Transition
The GSEs have been redesigning the Uniform Appraisal Dataset since 2018 to replace traditional forms with a single data-driven, flexible report format that works for any residential property type.9Fannie Mae. Uniform Appraisal Dataset Starting November 2, 2026, every appraisal on a loan delivered to Fannie Mae or Freddie Mac must conform to UAD 3.6. Until that date, UCDP continues to accept either the legacy UAD 2.6 format (the current Form 72 layout) or the new UAD 3.6 format.5Freddie Mac. Uniform Collateral Data Portal General User Guide
After the deadline, the Form 72 template gives way to the new dynamic report structure. The underlying work carries forward: comparable sales, rental analysis, condition and quality ratings, and the dual valuation approach all remain. The change is primarily about format and data transmission rather than what the appraiser actually evaluates. If your appraisal is ordered in 2026, confirm with the lender which format they want submitted.
What the Appraisal Costs
Appraisal fees for two- to four-unit properties run higher than for single-family homes because the appraiser must inspect every unit, analyze rental income, and develop both valuation approaches. Fees vary with location, property size, and market complexity, but most fall somewhere between $500 and several thousand dollars. Properties in dense urban markets or with unusual characteristics tend toward the higher end. The borrower almost always pays the appraisal fee upfront, and it is not refundable if the loan falls through.