Market increase caused FMV to increase do I have to increase rent

[Anonymous_]

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@Opus 17 wrote:
It is not personal use if an owner rents below FMV to an unrelated person.......I believe I would still be correct in the situation where the tenant was unrelated to the owner, based on the quoted regulatory language. 

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I quoted the relevant section in an earlier post:

I.R.C. §280A(d)(2)(C):

(2) For purposes of this section, the taxpayer shall be deemed to have used a dwelling unit for personal purposes for a day if, for any part of such day, the unit is used—

(C) by any individual......, unless for such day the dwelling unit is rented for a rental which, under the facts and circumstances, is fair rental.

Note that there is no mention of the tenant being related to the owner.

[TomD8]

A day of personal use of a dwelling unit is any day that the unit is used by:

• You or any other person who has an interest in it, unless you rent your interest to another owner as his or her main home and the other owner pays a fair rental price under a shared equity financing agreement
• A member of your family or of a family of any other person who has an interest in it, unless the family member uses it as his or her main home and pays a fair rental price
• Anyone under an agreement that lets you use some other dwelling unit
• Anyone at less than fair rental price.

https://www.irs.gov/taxtopics/tc415