Cluster 4
Moderate
Urban core of smaller, growing metro areas
Decreasing share of affordable units
Low income
Under 35 years old
5+ unit buildings
Built after 2000
High vacancy
Low density
New development of high density buildings
Generally affordable rental markets that have seen new growth in rental housing development, but also rapidly deteriorating affordability conditions. Often found as part of the urban core of smaller, growing metros or suburban areas in larger, more established metros
- Demand: This market type has moderate levels of renter households. Renters in this area are more likely to be younger (under 35) than other areas. It has the highest level of moderate-income renters (50%-80% AMI) and has seen the largest growth in renters at this income level compared to other areas. It has also seen large declines in very low-income renters (less than 30% AMI). This area is racially/ethnically diverse with a majority white population, but has high and increasing levels of Black and Hispanic/Latino population compared to other clusters.
- Supply: The rental stock was largely built between 1950 and 2000, but what distinguishes this cluster is low levels of rental housing built before WW2. It has low levels of rental housing in 2 to 4 unit buildings, but the highest levels of rental units in 5 to 49 unit buildings. This area has seen some indication of new investment with higher levels of rental properties built since 2000 and above average increases in properties built since 2000. There has also been an above average increase in rental units in 50+ unit properties. In certain parts of the country, this market type is also more likely to have mobile home rentals.
- Affordability: This area is generally affordable, but trends since 2012 indicate that this area has seen the largest declines in rental affordability conditions. This market type has high levels of affordable rental supply and average levels of renter cost burden. However, it has the largest recent declines in the share of rental units that are affordable. It has also seen the largest increase in the share of lower-income renters living in higher-cost units. This area has also seen the largest declines in the share of renters who are lower-income. This has modest levels of subsidy with average levels of housing choice voucher usage, but low levels of project-based section 8 and public housing.
Programs active in Cluster 4
Property Tax Incentive for Affordable Rental Housing Chicago, Statewide
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Property Tax Incentive for Affordable Rental Housing is a statewide property tax incentive in Illinois, implemented at the county level through individual County Assessor's offices. In Cook County, the incentive is called the Affordable Housing Special Assessment Program (AHSAP). Properties must have seven or more residential units and involve … Read more >
Amazon’s Housing Equity Fund Nashville, Seattle, Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5In January 2021, Amazon launched the $2 billion Housing Equity Fund with the goal of creating and preserving 20,000 affordable homes across three of its hometown communities, Washington State's Puget Sound region; the Arlington, Virginia/National Capital region; and Nashville, Tennessee, within five years. In June 2024, the company extended the … Read more >
Navigator Pre-Development Loan Hartford, Pittsburgh, Washington D.C.
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Navigator Pre-Development Loan is part of a broader suite of innovative financing products designed to connect property owners with technical assistance and funding to implement energy efficiency and climate resiliency retrofits. Created by Inclusive Prosperity Capital (IPC), a nonprofit specialty financing intermediary, the product is implemented in collaboration with … Read more >
Community Investment Tax Credit Program (CITC) Nashville
Cluster 4The Community Investment Tax Credit (CITC) program, administered by the Tennessee Housing Development Agency (THDA), allows financial institutions to receive a credit against franchise and excise tax obligations when they make qualified loans, investments, grants, or contributions to eligible housing entities engaged in low-income housing activities. The program has been … Read more >
District Opportunity to Purchase Act (DOPA) Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5The District Opportunity to Purchase Act (DOPA) is a preservation tool administered by the DC Department of Housing and Community Development (DHCD) that grants the District of Columbia a right of first purchase when eligible rental properties are offered for sale. DOPA applies to rental properties with five or more … Read more >
Housing Impact Fund (HIF) Charlotte
Cluster 4 Cluster 5 Cluster 6The Housing Impact Fund (HIF) is a for-profit social impact equity fund established in 2020 to preserve NOAH in rising cost markets in Charlotte, North Carolina. The fund is managed by Ascent Housing, which serves as operating partner responsible for acquisition, financing, renovation, and property management. The fund commits to … Read more >
Income-Eligible Multi-Family Retrofit Program (IEMF) Boston
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Income-Eligible Multi-Family Retrofit Program (IEMF), administered under the Mass Save® collaborative of Massachusetts electric and natural gas utilities, provides no-cost or incentivized energy efficiency improvements to affordable multifamily properties. Eligible properties must have five or more units with at least 50% of units occupied by households at or below … Read more >
Low-Income Rental Classification (LIRC) Statewide, Minneapolis
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6Administered by Minnesota Housing, the state’s housing finance authority (HFA), the Low Income Rental Classification (LIRC) Program provides that qualifying low-income rental properties are eligible for property use classification that has a lower tax class rate thereby reducing the property tax obligation for a given property. This property use classification … Read more >
Market Rate Conversion Program Portland
Cluster 4 Cluster 5The Market Rate Conversion Loan Program is one program funded through the through the Oregon Housing Acquisition Fund (OHAF) and is the administered by the Network for Affordable Housing (NOAH), a community development financial institution (CDFI). OHAF is capitalized through a blend of private bank capital, philanthropic grants, and public … Read more >
Multifamily Energy Savings (MFES) Regional, Chicago
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Multifamily Energy Savings (MFES) program is a utility-delivered energy efficiency initiative serving affordable multifamily properties in northern Illinois, administered jointly by ComEd, Peoples Gas/North Shore Gas, and Nicor. The program provides comprehensive, building-wide upgrades, including building envelope, HVAC, and domestic hot water systems, in both tenant units and common … Read more >
Multifamily Property Tax Exemption (MFTE) Statewide, Portland, Seattle
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Multifamily Property Tax Exemption (MFTE) Program is a statewide framework established by the Washington State Department of Commerce in 1995 to incentivize multifamily housing investment through temporary property tax exemptions on residential improvements, implemented by participating cities and counties. Property owners are exempt from taxes on residential improvements for … Read more >
NOAH Impact Fund Minneapolis
Cluster 1 Cluster 3 Cluster 4 Cluster 5 Cluster 6The NOAH Impact Fund is a private equity fund administered by Greater Minnesota Housing Fund (GMHF), a statewide community development financial institution (CDFI), to preserve the long-term affordability of naturally occurring affordable housing (NOAH) in opportunity areas across the Twin Cities region. The fund launched in 2017 with NOAH Pool … Read more >
Pathway Housing Fund (PHF) Nashville
Cluster 1 Cluster 2 Cluster 4 Cluster 5 Cluster 6The Pathway Housing Fund (PHF) is a $30 million private capital fund launched in 2024 by Pathway Lending, a Tennessee-based community development financial institution (CDFI). The fund is designed to preserve unsubsidized affordable rental housing across Tennessee that is at risk of market conversion due to gentrification and rising land … Read more >
Regional Naturally Occurring Affordable Housing (NOAH) Fund Boston
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 6The Regional NOAH Fund is a revolving debt program administered by Massachusetts Housing Investment Corporation (MHIC), a community development financial institution (CDFI) founded in 1993, to support the acquisition of unsubsidized multifamily properties across Massachusetts. The fund provides senior and subordinate debt at below-market rates for terms of up to … Read more >
Small and Medium Multifamily (SMMF) Loan Program Minneapolis
Cluster 1 Cluster 2 Cluster 4 Cluster 6The Small and Medium Multifamily (SMMF) Loan Program is a partnership among Land Bank Twin Cities, the Local Initiatives Support Corporation (LISC), and the City of Minneapolis to preserve small and medium multifamily rental properties (2–49 units) in Class B and C buildings without existing government subsidy. The Land Bank … Read more >
Small Buildings Program (SBP) Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5The Small Buildings Program (SBP) is administered by the DC Department of Housing and Community Development (DHCD) Housing Preservation Unit and comprises two subprograms: the Small Housing Provider Grant and the Small Property Loan Program. The Small Housing Provider Grant provides up to $65,000 per unit, capped at $400,000 per … Read more >
Texas Housing Conservancy Fund Austin
Cluster 1 Cluster 4 Cluster 5The Texas Housing Conservancy Fund is an open-ended social impact private equity fund managed by the Texas Housing Conservancy (TxHC), a 501(c)(3) nonprofit founded in 2016 in Austin, Texas. The fund pools capital from high-net-worth individuals, family offices, foundations, institutional investors, and bank CRA programs to acquire existing market-affordable multifamily … Read more >
Washington Housing Initiative Impact Pool (WHIIP) Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5The Washington Housing Initiative Impact Pool (WHIIP) is an approximately $115 million investment vehicle managed by JBG SMITH Impact Manager, a subsidiary of JBG SMITH Properties. The fund provides mezzanine/second trust financing, coordinates the placement of qualified 501(c)(3) bonds, and measures and reports on impact outcomes. WHIIP provides up to … Read more >
MSAs including Cluster 4
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