What is a Market-Rate Property?
Market-Rate Properties and the HUD 223(f) Loan Program
Market rate properties are non-subsidized properties, for which residents pay market rate rents or purchase properties at market value. When it comes to purchasing market-rate properties with a HUD 223(f) loan, borrowers are permitted LTVs of up to 85%, and DSCRs as low as 1.18x. In comparison, affordable properties and properties using rental assistance are allowed more lenient underwriting standards.