Arbor’s Single-Family Rental Investment Trends Report Q1 2026, developed in partnership with Chandan Economics, spotlights how market shifts, including the rising cost of living and historically high build-to-rent activity, have fueled record rental household growth.
Multifamily permitting trends indicate continued national stability amid local recalibration. Across the country, issuances were steady, rising just 2.6% in 2025. At the metropolitan level, trends diverged sharply, with some markets accelerating and others pulling back. Per-capita leaders continued to cluster around high-growth Sun Belt and regional hubs, while year-over-year market-level fluctuations suggest that more pipelines have become increasingly selective and, in some cases, more concentrated in large-scale projects.
The small multifamily sector entered 2026 on a strong note, even as lending conditions remained shaped by persistently high interest rates and regulatory uncertainties.
The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), is one of the largest mortgage insurers in the world. The agency insures mortgages on affordable housing, multifamily properties, single-family homes, and healthcare facilities. Since 1934, FHA has financed over 50,000 multifamily mortgages nationwide. Whether you’re interested in acquiring, refinancing, or rehabilitating an affordable housing property, FHA multifamily loans are a financing route you need to know about.
FHA® 232/223(f): Healthcare Refinance, Acquisition or Mod Rehab
Despite a national slowdown, population growth remained concentrated in a small group of states in 2025, where strong net domestic migration inflows, economic opportunity, and in some cases elevated birth rates drove the annual increases. Overall, 14 states had an annual population growth rate above 0.75%, while 12 states had less than 0.1%, according to a Chandan Economics analysis of the U.S. Census Bureau’s 2024 American Community Survey.
Build-to-rent (BTR), a compelling solution to the U.S. housing market’s evolving needs, is experiencing record growth. BTR accounted for 8% of all single-family rental (SFR) construction starts in the 12 months that ended in the first quarter of 2024, according to Arbor’s Single-Family Rental Investment Trends Report Q2 2024. As the need for quality rental units remains high, borrowers have much to gain from partnering with an experienced lender who specializes in build-to-rent financing.
Out of the 75 largest U.S. metropolitan areas, occupancy rates for all types of rental properties, including multifamily and single-family rentals (SFR), remained exceptionally high in 2025.
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Houston
Year Built
A real estate investment firm was exploring a full acquisition of a newly constructed apartment community in Houston, TX. Without an existing asset and with limited operating history in this region, the borrower sought expert guidance to develop a strategy to acquire the property. With interest rates rising, the borrower wanted to lock in a highly competitive rate to refinance a rental community that had swelled to over 90% capacity.
Arbor worked with the U.S. Department of Housing and Urban Development (HUD) to secure an FHA 223(f) loan refinance with green savings, which provides long-term, fixed-rate financing for refinancings, acquisitions, or moderate renovations. Arbor negotiated an underwriting change while interest rates were increasing, allowing the borrower to secure a Bridge to HUD loan to help improve net operating income and increase loan proceeds. In addition, Arbor connected the borrower with HUD’s green program, which reduces existing loan interest rates.
The borrower secured a Bridge to HUD loan that funded the acquisition of a beautiful and sprawling Houston apartment community with wide-ranging amenities. They achieved a better-than-anticipated rate for their HUD execution. The apartment community, constructed to meet high energy efficiency and sustainability standards, was then entered into HUD’s green program, reducing mortgage insurance premiums enabling the borrower to achieve optimal savings.