FEMA 50% Rule Appraisals

Was your property damaged by a storm?

If your property is located within a flood zone and was damaged during a natural disaster, you may end up needing or wanting a FEMA 50% Rule Appraisal for substantial damage purposes. Substantial damage refers to damage sustained by a structure—regardless of the cause that equals or exceeds 50% of the structure's market value before the damage occurred. If a structure has substantial damage, repairs must meet current FEMA floodplain management standards, which could include elevating the structure amongst other compliance measures. Getting a private appraisal from a licensed appraiser to show the Actual Cash Value (ACV) of the structure prior to damage can assist you with knowing your options and whether or not you will be able to repair your property.

What is the FEMA 50% Rule?

If you live in a flood zone, then you have more than likely heard of the National Flood Insurance Program (NFIP). The NFIP is managed by FEMA (Federal Emergency Management Agency), and any community that needs NFIP to be available to its residents and businesses must abide by a set of regulations set by the NFIP. Under the 50% rule, any substantial improvement to a structure cannot exceed 50% of the structures depreciated market value, unless the owner of the property can bring the entire structure up to FEMA standards. FEMA defines substantial improvement as “any reconstruction, rehabilitation, addition or other improvement to a structure, the total cost of which equals or exceeds 50 percent of the market value of the structure before the start of construction of the improvement”. FEMA states “applies to a structure in a Special Flood Hazard Area – or floodplain – for which the total cost of repairs is 50 percent or more of the structure’s market value before the disaster occurred, regardless of the cause of damage.” FEMA will only allow 50% of the depreciated replacement cost to be used when improving your property.

I need a 50% rule appraisal, what do I do?

If you are trying to figure whether or not you will need a private 50% rule appraisal from a licensed appraiser, the first thing that can be helpful to know is your likely repair/renovation costs. Obtaining an estimate from a contractor for the repair and/or renovation work you are seeking to have done on your property is a good piece of information to have in order to compare it to your structure value. Next, checking the depreciated structure value for your property at your local County Property Appraisers Office gives you the next piece of information that will help you determine if a private appraisal might be necessary or helpful. Once, you know your cost to repair/renovate and the County Property Appraiser structure value then you can calculate your percentage, using the formula noted at the top of this page. If you are under 50% then you may not need to pursue a private appraisal. If you are near or over 50% then you may want or need to have a private appraisal performed for you property to determine the most accurate structure value and ultimately determine if you will be able to repair/renovate your property.


Not all projects fall under the 50% FEMA rule, but many structural additions, reconstruction, or improvement to a building will fall under the rule. As an example: adding a swimming pool or driveway, would not fall under the rule since they are site improvements and not part of the structure. Many other renovations and repairs that involve the building structure will be subject to this rule.


If you determine that your repair costs exceed the 50% (or 49%) threshold of the structure value determined by the County Property Appraisers office, the next step is to find an experienced and qualified appraiser to come and value your property. Mike Cliggitt, MAI, MRICS, CCIM has over two decades of experience in specialized appraisals and has helped many property owners with their FEMA 50% appraisals. Once you receive your accurate appraisal of depreciated structure value for your property (land is not included, just the value of structure), you can utilize this as part of your application to obtain the required permit to repair/renovate your property.


Please note, it does not matter if the renovation to your property is necessary due to a natural disaster such as flooding, the 50% rule states that you cannot make an improvement exceeding 50% of the depreciated market value of the structure unless you are able to bring the entire structure up to standards.


Please feel free to give us a call at 813.405.1705 or use the contact form to get in touch. We can provide a free no obligation appraisal quote and also are happy to help answer your FEMA 50% appraisal questions.

FEMA 50% appraisal substantial improvement = cost of improvement project > 50 percent market value of the building

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