Articles

Renters Account for Majority of Household Growth

The number of rental households climbed nearly 2% last year, as 848,000 more households became renters, an analysis of the U.S. Census Bureau’s Housing Vacancies and Homeownership Survey shows (Chart 1). Rental households also hit a new high of 45.3 million, accounting for more than half of all U.S. household growth in 2024. Weakening affordability, evolving lifestyle preferences, and a limited supply of quality housing all contributed to surging multifamily and single-family rental (SFR) demand.

Articles

Solar Panel Usage Accelerates in Rental Properties

Solar panel installations, which skyrocketed in the U.S. over the last half-century, are projected to double to 10 million in just six years. While installations soared in all types of residences, owner-occupied properties significantly outpaced rentals. However, the evolving economics of solar power may be approaching a tipping point for single-family rental (SFR) operators looking for a differentiator.

Analysis

Small Multifamily Investment Snapshot — March 2025

Amid ongoing macroeconomic uncertainty, the small multifamily sector remains favorably positioned for stability as the structural need for affordable housing in the U.S. has supported the strength of the sector’s demand profile.

Articles

Top Markets for Rental Occupancy

Nationally, vacancies have risen, but the performance of rental housing is extremely localized. Out of the 75 largest U.S. metropolitan areas, the occupancy rate for all types of rental properties, including single-family rentals, 2-4 family, multifamily, and mobile homes, increased in 36 markets last year, while exceeding 95% in nearly one-third of all markets, according to an analysis of newly released U.S. Census Bureau data.[1] From Grand Rapids, MI, to Columbia, SC, the top markets for rental occupancy show where conditions are tightest and demand is strongest.

Current Reports

Single-Family Rental Investment Trends Report Q1 2025

Arbor’s Single-Family Rental Investment Trends Report Q1 2025, published in partnership with Chandan Economics, is an up-close look at the single-family rental (SFR) sector as it enters a period of normalcy after explosive pandemic-era growth. SFR maintains its balance with the support of a healthy set of fundamentals while capital markets rebound and rent growth moderates.

Articles

Small Multifamily Price Growth Trends Show Stabilization

Small multifamily price growth trends indicate a stabilization may be ready to take hold. Expanding on the findings of Arbor’s latest Small Multifamily Investment Trends Report, our research teams more closely examined valuations to determine if trends in pricing and other fundamentals are supporting a turnaround.

General: 800.ARBOR.10

Home | Freddie Mac | Manufactured Housing Resident Owned Community Loan (MHROC)
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FREDDIE MAC

Manufactured Housing Resident Owned Community Loan (MHROC)

  • Designed specifically for MHROCs (also known as MH Cooperatives)
  • Expands affordable housing options for underserved populations, particularly in rural and non-metro areas where MHROCs are prevalent

Eligible Property Types Existing, stabilized, high-quality, professionally managed MHROCs, with or without age restrictions
Eligible Transaction Types
  • Acquisition/Conversion: An Acquisition Mortgage on a Manufactured Housing
    Community which is in the process of converting from a rental property to an
    MHROC. The MHROC Borrower must be formed prior to rate lock.
  • Seasoned Refinance: A Refinance Mortgage on an existing MHROC with most shares already sold to resident shareholders
Eligible Borrowers Not-for-profit cooperative corporation or association (“Co-op”) in which shares in
the Co-op are sold to shareholders and such shares entitle the shareholder to
occupy a specific pad
Requirements for Resident Shareholders At rate lock:

  • 100% of pads must be owned by the MHROC Borrower.
  • At least 90% of shares must be owned by resident-shareholders.

Seasoned Refinances offer flexibility on this point with alternate sizing.

Debt Service Reserve May be required
Terms 5- to 30-year terms
Minimum UPB Amount $500,000
Maximum Amortization 30 years
Interest Rate Fixed-rate only, floating rate not permitted (Refer to the Fixed-Rate Loan term sheet for additional information.)
Interest Only Amortizing only – Interest only not permitted
Prepayment Provisions Refer to the Fixed-Rate Loan term sheet for additional information.
Recourse Requirements Non-recourse, guarantor not required
Supplemental Financing Available, subject to the Supplemental Loan offering and Loan Agreement requirements
Home Rentals The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 5% in aggregate.
Tax and Insurance Escrows Required
Replacement Reserve Escrows Minimum $50/site/year and $250/borrower-owned manufactured home/year (if included in the collateral)
Application Fee Greater of $2,000 or 0.1% of loan amount
Early Rate and Spread Lock Options Standard Delivery
Refinance Test Refinance Test is necessary on all MHROC loans
Additional Considerations
  • Private facilities (e.g., wells and septic systems) are allowed with considerations.
  • Rental leases cannot contain option to purchase pad sites or borrower-owned manufactured homes.
  • Retail sales or financing by borrowing entity of any manufactured homes or shares in the MHROC Borrower is not allowed.
  • RV campgrounds and broken condominiums are excluded.
  • Wrap financing, seller financing, mezzanine financing, and preferred equity are not permitted.
  • Freddie Mac will not purchase end loans or loans to individual shareholders.

V051722

ARBOR.COM | 800.ARBOR.10
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