Chapter 6 › V. Rented or Leased Equipment

We rented equipment for the disaster. Will FEMA pay the rental cost?

FEMA term

Rented or leased equipment

Short answer

Yes, based on the terms of the rental agreement, provided you compared renting with buying and the rental didn’t cost more than buying and maintaining the equipment over the project.

What FEMA requires

An analysis of renting or leasing versus purchasing.
Total rental cost no higher than purchase and maintenance over the life of the project. If it is higher, FEMA judges whether you acted prudently given the circumstances at the time.
Rent-to-own: if you gain ownership during the work, FEMA switches to the hourly equipment rate; if the work ends first, FEMA pays the rental cost.

Documentation

The rental or lease agreement, invoices, and the rent-versus-buy comparison.

Watch out · Govstar practitioner advice

Write the rent-versus-buy comparison at the time you rent, even briefly. It is a federal procurement requirement, not just a FEMA preference.

Govstar summarizes FEMA’s Public Assistance Program and Policy Guide in plain language and links to the official text. Govstar is independent and not affiliated with FEMA. This is general guidance, not legal advice.