What is Property Stabilization?
Property Stabilization and the HUD 223(f) Loan Program
Property stabilization or stabilized occupancy is a projected range of occupancy for rental property. In other words, this is the expected occupancy that the project will have after being on the open market for a certain time period. Stabilized occupancy can also refer to the level of occupancy a property needs in order to “break even,” meaning that the project’s monthly expenses are less than or equal to the monthly income it generates. In the case of HUD 223(f) loans, a property must have had stabilized occupancy for at least 3 years before it can be approved for HUD 223(f)-insured financing.