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SFR Rent Growth: Top Markets and Leading Regions

Elevated mortgage interest rates and high home prices boosted demand for single-family rentals (SFR) last year, supporting the growth of rents in almost all of the 100 largest metropolitan areas. Pricing momentum, which averaged 4.5% nationally, was concentrated in affordable markets in the Northeast and Midwest, an analysis of Zillow’s Observed Rent Index data shows.

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Build-to-Rent’s Robust Activity Settles into Stable Pattern

Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to satisfy their inventory needs. The popularity of BTR communities made economies of scale possible for the SFR sector in the recovery after the 2007 housing crisis and continues to fill a housing need nationwide. Now, newly released U.S. Census Bureau data shows that SFR development activity remained robust even as its momentum slowed, moving the sector into a more stable equilibrium.

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Advancing Sustainability in CRE Finance in a Shifting Landscape

With political headwinds reshaping the corporate responsibility landscape, commercial real estate (CRE) leaders, policymakers, and academics recently gathered in New York City for the NYU Stern Chen Institute for Global Real Estate Finance’s 3rd Annual Symposium on Innovation & Sustainable Real Estate to discuss the future of sustainable real estate finance, investment, operations, and technology. In a series of panel discussions, industry leaders offered their perspectives on how sustainability is evolving in a new political environment and why green policies still make business sense.

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Dr. Sam Chandan Sees an Opportune Moment Emerging for Multifamily Buyers

Rental housing remains uniquely positioned for continued growth in an environment of economic volatility and political uncertainty, Dr. Sam Chandan, founding director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and founder of Chandan Economics, asserts in his video overview of Arbor’s Special Report Spring 2025.

Current Reports

Small Multifamily Investment Trends Report Q1 2025

Arbor’s Small Multifamily Investment Trends Report Q1 2025, developed in partnership with Chandan Economics, examines a key commercial real estate sector that consistently shows stability amid ongoing economic volatility. Small multifamily continues to show positive trends in key indicators, such as asset valuations, originations volume, and construction, signaling that the sector should continue to overpower headwinds as it builds on its ongoing momentum.

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Top Markets for Multifamily Permitting Per Capita

With construction activity continuing to vary according to market, newly released U.S. Census Bureau data reveals emerging trends in multifamily building permits issued and how supply dynamics are poised to impact rent pricing patterns in the nation’s top 100 markets.

Articles

FHA Loan Changes Boost Access to Affordable and Market-Rate Multifamily Financing

The U.S. Department of Housing and Urban Development (HUD) recently announced that new Federal Housing Administration (FHA) rules designed to boost housing production are now in effect. The new rules bring more favorable debt service coverage ratios (DSCRs), loan-to-cost ratios (LTC), and loan-to-value (LTV) ratios on certain types of FHA multifamily loans, unlocking more proceeds to borrowers.

Analysis

U.S. Multifamily Market Snapshot — February 2025

The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle. Rental demand continued to be driven by solid wage growth and household formation, as well as high home prices leading many would-be-homebuyers to consider lifestyle renting.

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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